Starting a business in Hawaii takes a lot of work; you need to process numerous documents, and complete many legal procedures before you can fully operate. If you’re at a crossroads deciding where to begin, I highly recommend that you start with incorporation.
Incorporating your Hawaii business can give you major advantage and numerous benefits. As the most important step in the startup process, it will give you and your business 100% business protection.
You may have heard of incorporation, but you don’t fully understand the meaning of the word, why you need it and how it can benefit you in the long run.
If you’re still skeptical about incorporating your startup, this article will convince you to incorporate it as soon as you can by introducing you to 5 solid reasons why you need to incorporate in Hawaii. Here are the reasons!
Misunderstandings, no matter how much you avoid them will always happen as long as a business is managed by different people. Every individual has his/her own identity, rooted by different principles, ways of thinking and attitude, thus conflicts will always be inevitable.
The most common point of origin in conflicts between co-owners/founders of a corporation is the equal sharing of stocks. However, if you incorporate your Hawaii small business, you’ll be able to get through with this problem because incorporated businesses have the ability to issue different kinds of stock equally.
Entrepreneurs who are truly passionate with what they do are concerned with the legacy that they can pass on – money only comes secondary.
Since a business is an inanimate object, the possibility of your Hawaii startup outliving you is normal. The death of an owner, the selling, transfer or withdrawal of stocks by one owner can easily upset the dynamics of its operations and it can be affected negatively in a snap.
But if you incorporate your Hawaii small business, it will be stable enough to be affected by small shakes and unexpected circumstances. Apart from this, incorporated businesses are difficult to dissolve so, this provides shareholders and owners ample time to seek remedies that will ensure the continuation of the business.
This is one of the best advantages of incorporating your Hawaii small business. Liabilities are part of managing a business and if you incorporate your business, you’ll be able to protect yourself against legal, personal and financial liabilities.
According to state law, once you incorporate in Hawaii, your business will be recognized as a separate entity. An independent structure with its own rights and transactions. If your business commits mistakes and encounters any issues, you will not be held accountable for anything.
Your business will deal with its own problems because the state of Hawaii will respect its right to due process.
Investors, credit providers and financial institutions are also protected by the state of Hawaii like businesses and business owners are. Because of this, they are more comfortable investing in businesses that are legally registered before the state.
Incorporated businesses also have the ability to issue stocks which is highly attractive to investors and loan providers; this features makes raising capital so much easier. If you want to look for financing for your Hawaii startup, the best way to do it is incorporate as soon as possible.
Building your business reputation takes time. To give you that added boost of credibility, you can incorporate your business before you officially start operating.
Consumers want to deal with a legitimate business because they know that their rights and consumers will be respected. This gives them an assurance, allowing them to trust you more. Also, having an Inc., Co. or LLC will give you that credibility that an unincorporated business can’t give you.
Incorporating a business in Hawaii is a daunting task especially if you’re still a new entrepreneur and it’s your first time hearing about the process.
The lack of knowledge and skills to go through with the legal procedure will definitely cause numerous mistakes and errors. While you can ask the assistance of professionals, government agencies and study how the process is done, your lack of experience will still be a hindrance to complete your incorporation as smoothly as possible.
To save time, effort and resources, you can use an online incorporation service to help you out. You will still be able to participate in the process while being able to incorporate your business in as efficient a way as possible.
Whether you’re trying to incorporate a Georgia LLC or a Corporation, online incorporation providers will be able to assist you from start to finish.
LegalZoom is one of the most popular online incorporation service in the industry, but there are many more options available, below is a list of them.
Affordability and quality are two things that IncFile offers. With its comprehensive and modern features and tools, you’ll be able to create a solid and professional business plan for your Hawaii startup.
At $49, you can take advantage of a free registered agent service for one full year, one-on-one business consultations, one-business day preparation and order tracking in real time. You can read the review for more info!
CorpNet is another excellent online incorporation service that has swept the business industry by storm. Founded by a husband-wife team from Southern California, CorpNet is a small incorporation company intended to assist small businesses.
CorpNet has the following features to boast: Business Structure Wizard, free business consultations, free trademark search, free business name search and 24-hour document preparation. You can read the review for more info!
If you want a credible online incorporation service, BizFilings is the best choice for you. It has an A+ BBB rating and an outstanding track record unmatched by other incorporation providers.
Over the years, BizFilings has gained a solid base of loyal customers because of the following features: BizComply, one-day business preparation and filing, business name verification, registered agent service and a lot more. You can read the review for more info!
While online incorporation services have more or less the same features, they actually have identifiable differences.
For instance, IncFile offers a free registered agent service for one full year valued at $150, and while BizFilings and CorpNet offers this service, it’s actually not for free, you need to pay for it to be able to avail of the service.
CorpNet on the other hand has a free trademark tool that IncFile doesn’t have. These are just a few examples of how online incorporation services differ. Regardless of their services, these providers have one thing in common: they will help you incorporate your business without letting you lift a finger.
Incorporating your Hawaii small business is the only way to protect your business and yourself. The process should be on top of your priority list, don’t have second thoughts on doing the process because it will surely help you in the long run.
At the end of the day, it doesn’t really matter whether you do it yourself or ask for assistance from a professional or an online incorporation service – the most important thing is, you are fully convinced of the reasons why you need to incorporate.