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A registered agent must be available to receive these documents during normal business hours. The next step on the road to incorporation is to compile and file articles of incorporation with your chosen state's Secretary of State. Each state also has a filing fee that you must pay when filing the articles. Once you have received notification that your business entity is registered with the state as a corporation, you are literally in business. At this point, you can formally add the denomination "Incorporated" or "Inc.

Your newly formed corporation should absolutely indicate that it is an incorporated entity. To accomplish this, you may also choose to use the full words "Corporation" or "Company," or the abbreviations "Corp. Overall, remember that "Incorporated" and the similar words listed exist so that the public knows that the business in question is, indeed, incorporated as such with a Secretary of State.

Contents 2 min read. Freelance writer and editor Michelle Kaminsky, Esq. She earned a Juris Docto… Read more. Starting a Business.

Deciding which of these is best for your business depends on several important factors, including your short- and long-term objectives.

Business names often have abbreviations after them, including LLC and Inc. Every state has different laws regarding the level of activity needed before it requires qualification. Some business owners confuse foreign qualification with forming an entity in each state they do business. While business often do form multiple entities if they have subsidiaries, it is not advisable to form separate entities for one business. It creates issues with choice of law, which entity holds the companies assets, and uncertainty if there are discrepancies between each entities governing documents.

It also would create unnecessary filing and maintenance costs for the business. Take advantage of the freedom of being able to choose the laws of the state that govern your internal business structure. Forming a redundant entity in your home state or in each state you do business is not a well-advised strategy.

That would result in having multiple companies by the same name and be a big mistake. Where is your principal place of business? Other times, businesses have multiple locations. Every company has one principal place of business. Generally, you need to go on record there. This is so if there is a problem, the injured or aggrieved parties know where to serve you with official papers.

This is a matter of public policy and you should comply with this state law requirement and evaluate where you should go on record with a certificate of authority. We cannot tell you whether your home state requires you to go on record. That is a legal opinion. IncNow is a filing service, not a law firm. You may want to contact legal counsel in your home state or make the decision for yourself after reviewing the laws in your home state. Business Essentials Guide to Mergers and Acquisitions.

Business Business Essentials. What Is Incorporation? Key Takeaways Incorporation is the way that a business is formally organized and officially brought into existence. The process of incorporation involves writing up a document known as the articles of incorporation and enumerating the firm's shareholders. In a corporation, the assets and cash flows of the business entity are kept separate from those of the owners and investors, which is called limited liability.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms What Everyone Should Know About Corporations A corporation is a legal entity that is separate and distinct from its owners and has many of the same rights and responsibilities as individuals.

Company A company is a legal entity formed by a group of people to engage in business. Learn how to start a company and which is the richest company in the world. How C Corporations Work With a C corporation, the owners or shareholders are taxed separately from the corporation itself, meaning profits are taxed on both a business and a personal level. Sole Proprietorship: What You Should Know A sole proprietorship or sole trader is an unincorporated business with a single owner who pays personal income tax on profits earned from the business.

It protects the owners' assets against creditor claims. This makes its structure less complex than that of a corporation, but like a corporation, LLCs must offer stock. Members share profits as they like.

Members are considered self-employed and must pay self-employment tax. When a member of the LLC leaves, the business is dissolved and the remaining members decide if they want to start a new business.

An LLC is also formed according to state law, through application to to the secretary of state and filing articles of incorporation. Located in the mid-Atlantic United States, Elizabeth Layne has covered nonprofits and philanthropy since , and has written articles on an array of topics for small businesses and career-seekers. An award-winning writer, her work has appeared in "The Chronicle of Philanthropy" newspaper and "Worth" magazine.

The Difference Between Inc. By Elizabeth Layne Updated January 29,