Form a Corporation Online
One of the most important decisions you can make when starting your business is deciding which entity to choose. Forming either a corporation or limited liability company has important advantages over operating as a sole proprietorship, such as limited liability, added credibility, and potential tax benefits. Learn more below to better understand the differences between the various entity types and to decide if our incorporation services are the right option for your business.
What are the benefits of starting a corporation?
Protect your personal assets
Forming a corporation or LLC establishes a clear separation between you and your business, protecting your personal assets by creating a separate legal entity.
Establish Credibility and Trust
Creating a formal entity for your business demonstrates to potential customers, vendors and suppliers that your business is legitimate.
Potential Tax Savings
Take advantage of tax advantages not available to businesses who choose to conduct business as a sole proprietorship
We'll handle the filings
We've helped over one million new business owners form a corporation or LLC, and we're ready to help you too.
Compare Our Formation Packages
Choose the entity type that's right for your business.
Form a Corporation
- Creates a formal business structure
- Attract investment by issuing shares of stock
- Deduct medical premiums and fringe benefits
- Asset protection for directors and shareholders
Form an LLC
- Few formalities and legal requirements
- Less paperwork; no annual meeting requirements
- Take advantage of pass through taxation
- Flexible management structure
MyCorporation
What is Business Incorporation?
Business incorporation is the process of forming a legal business entity, such as a corporation or LLC, with the state. Once incorporated, your business becomes its own legal structure, separate from you as the owner. This provides liability protection, legal recognition, and access to potential tax and financial advantages.
Why Should I Incorporate My Business?
Incorporating your business helps protect your personal assets from business debts and legal claims. It can also improve your credibility with customers, vendors, and lenders. In many cases, incorporation provides tax flexibility and long-term advantages that support growth, especially if you plan to expand or bring on investors.
What kinds of businesses can benefit from incorporation?
Whether you run a small business with no employees or a large business with multiple locations, incorporating a business maximizes your chances of success and helps you get the most out of your business.
The most important benefit of incorporation is limited liability. Both corporations and LLCs allow you to separate and protect your personal assets from those of the business, meaning that you have limited liablitly for the debts and obligations of the business. Only money you directly invest in the business is subject to these obligations, not your home, vehicle, or other personal possessions.
Where should I incorporate my business?
It's important to consider all of your options when choosing where to form your business, and new business owners commonly seek the advice of an attorney or CPA to help them make the best financial choices. Most commonly, a business owner's best option is to form in their home state. While some states do offer certain advantages, such as the favorable tax laws of Nevada or Delaware, it's important to remember that no matter which state you choose, you will still need to file and pay taxes in each state where you conduct business. While this could be advantageous for some small businesses, it also means that forming your business in your home state is likely to simply your tax returns. It is important to weigh out these options with the help of a legal professional if you are unsure which is best for your busines.
When Should I Incorporate a Business?
Many small business owners may wonder when the best time to incorporate a business is. While incorporating too early may result in paying unnecessary filing fees, you would want to weigh that against the possible financial risks of operating a business without the protection of a legal entity. When you incorporate your business, you designate your business as a separate legal entity, responsible for its own debts and obligations. In a scenario where your business were to face a lawsuit before you incorporate, your home, vehicles, or other personal belongings could be used as collateral to repay the debts accrued by the business.
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Business Formation Services
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Learn More
Free Guide to Incorporating
Download our free guide to incorporating or forming an LLC. We give you the information you need to help you choose the right entity for your new business.
LLC vs. Corporation: What are the main differences?
Watch our video to learn about the difference between a corporation and a limited liability company.
or try our entity wizard
Frequently asked questions
+\ What is a C-Corporation?
What sets a corporation apart from all other types of businesses is that a corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a corporation don't use their personal tax returns to pay tax on corporate profits—the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses, and the like.
If you would like to learn more, visit our Learning Center or Comparison Chart.
+\ What is an S-Corporation?
An S-Corporation is a regular corporation that has elected S-Corporation tax status. Forming an S-Corporation lets you enjoy the limited liability of a corporate shareholder but pay income taxes as if you were a sole proprietor or a partner. In an S-Corporation, all business profits "pass through" to the owners, who report them on their personal tax returns. The S-Corporation itself does not pay any income tax. Therefore, an S-Corporation elects not to be taxed as a corporation. After the corporation has been formed, it may elect S-Corporation status by submitting IRS form 2553 to the Internal Revenue Service (in some cases a state filing is required as well). Read more about electing S-Corporation status.
+\ What is a Non-Profit Corporation?
State laws distinguish between for-profit (stock) corporations and non-profit (non-stock) corporations. A non-profit corporation often involves an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes. Examples of non-profit types might relate to the arts, charities, education, politics, religion, research, sports or some other endeavor. Under the Federal Tax Code Section 501(c), a tax-exempt corporation cannot pay dividends and, upon dissolution, must distribute its remaining assets to another nonprofit group.
Read more about Non-Profit Corporations.
+\ What is a B-Corporation?
A benefit corporation is a corporation organized under a state's general corporation law that has elected to become subject to benefit corporation statutory provisions. Most benefit corporation statutes require that the entity "shall have the purpose of creating a general public benefit," meaning it must create a "material positive impact on society." In many states this general public benefit purpose is in addition to, and may be a limitation on, any specific purpose set forth in its articles. The benefit corporation was created to provide an option for entrepreneurs who want to voluntarily adopt higher standards of corporate purpose, transparency, and accountability. The entity provides a way to legally cement a social or environmental mission into a company's corporate and legal structure.
The provisions of general corporation law apply to benefit corporations except where those provisions are in conflict with or inconsistent with the benefit corporation provisions. Therefore, like a traditional for-profit corporation, a benefit corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a benefit corporation don't use their personal tax returns to pay tax on corporate profits-the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses, and the like.
+\ What is a professional corporation?
If your corporation will be engaging in what your state might call "Professional Services," the Articles of Incorporation must bear special language and the corporation must be formed pursuant to certain statutory provisions.
"Professional Services" according to most states usually consists of the following activities:
- Medical Services
- Legal Services and Representation
- Accounting and Financial Services
- Architectural Services
- Other services may be included in this list depending on your selected state of incorporation
It is important to note that most states vary in their requirements regarding licensing of professional activities, therefore, we encourage you to seek the advice of an attorney if you fall within the "Professional Services" statute of your state.
Read more about Professional Corporations.
+\ What is the fastest way to incorporate a business online?
The fastest way to incorporate online is to use a corporations filing service like MyCorporation that handles state filings on your behalf. With expedited state filing options, MyCorporation can have your corporation formed in as little as one business day in most states, compared to weeks of DIY preparation and government processing time.
+\ What is the cost of incorporating a business online?
The cost to incorporate a business online includes a state filing fee, which typically ranges from $50 to $300 depending on the state, plus the service fee charged by your filing service. MyCorporation offers transparent, flat-fee incorporation packages with no hidden legal costs, starting with basic filing options and scaling to comprehensive packages that include registered agent service, bylaws and compliance reminders.
+\ Can I incorporate my business entirely online?
Yes. MyCorporation's entire incorporation process is completed online, from name availability search through document preparation, state filing and delivery of your filed documents. No in-person visits, notarizations or attorney appointments are required.
+\ What documents do I need for online incorporation?
To incorporate online, you need your proposed corporation name, the state of incorporation, the names and addresses of initial directors, the registered agent's name and address and basic business information. MyCorporation guides you through every required field and prepares all state-required documents.
Are you ready to start a new business?
We can help you get started for just
$109 + state fees