Starting a business in Idaho is a lot of work. You need to brace yourself for the endless responsibility that you’re about to face. With patience, hard work, determination and proper planning, I’m sure that you’ll be able to build a successful business with a strong foundation.
The first and most important step in the startup process is incorporation. You may have heard of this legal term before, but you’re not really sure what it is and why it’s very essential to your Idaho startup.
Incorporation is a process that allows you to legally structure your business according to a variety of entities which you can choose from. By going through the process, you’ll be able to take advantage of numerous benefits, for you and your business.
Entrepreneurs have different perspectives when it comes to incorporation and it’s best to examine if it’s right for your Idaho small business or not. In this article, I’m going to present to you 5 solid reasons why you should incorporate. After that, I’ll introduce you to 3 useful incorporation resources.
Quick Note: If you decide to incorporate in Idaho and want professionals to handle all legal paperwork, look into IncFile (for $49) or LegalZoom (for $149). Both are excellent services and have started over 50,000 businesses like yours.
Running a company with other individuals who come from different backgrounds, have different principles and belief system and personalities can be quite a pain. No matter how hard you try to avoid conflicts, it will always arise at some point.
Whether they’re personal or business related, it’s best that you prepare for them ahead of time by incorporating your Idaho small business. Incorporated businesses have the ability to issue different kinds of stock, thus, when misunderstandings which are hard to resolve occur, you can immediately initiate equal sharing of stocks.
Your Idaho business has an indefinite life and it can outlive you or your co-founders. However, if you incorporate your business before the state of Idaho, you’ll be able to operate your business even when there’s a change of ownership or management position.
Unexpected circumstances such as the death of an owner or the selling, transfer or withdrawal of shares of stock will not affect the business as long as it stays incorporated. Incorporated businesses are also difficult to dissolve, making it possible to operate a business for long periods of time.
The entire purpose of incorporating your Idaho small business is to make it a separate and independent entity with its own rights and allowed to make its own transactions.
As a separate entity, it is accountable for its own welfare. In the event that it encounters any problems and issues, it will be responsible to answer for any of its mistakes or wrongdoings. You will be able to protect your personal assets and spare yourself from legal and financial liabilities as well.
Raising capital is easier for an incorporated business because of the security that it offers to its investors. Aside from this, it’s impossible to invest in a business if it’s not an entity, which is why it’s important to incorporate if you’re trying to gain capital or funding.
Another feature of an incorporated business that investors are most attracted is the ability to issue different types of stocks. Raising for funding is one of the hardest tasks of starting a business in Idaho and if you want to make things easier, you need to decide as early as now whether incorporation is for you or not.
Incorporation will undoubtedly give your business a sense of credibility in the eyes of consumers. Having an LLC or a Corporation right after your business name will make a huge difference as your operate your business.
Having these entity abbreviations after your business name will enable consumers to determine that your business is legally registered before the state. With this, they will feel more comfortable dealing with your because they know that they will be protect by Idaho state law.
To complete the incorporation of your Idaho small business, you need to have basic knowledge and experience of the legal process.
However, for new entrepreneurs and first-time business owners, this may seem impossible as they’re still new in the industry. If you belong to this category, it would be best if you seek assistance while incorporating your Idaho LLC or Corporation.
If you want to save time, effort and money, using an online incorporation service is right for you. Online incorporation providers have all the right tools and features that will help you incorporate your Idaho startup in the most efficient way possible.
LegalZoom is one of the best online incorporation services in the market, but there are many others that you can choose from, below is a list of them!
If you’re looking for an online incorporation provider that offers quality and affordability, IncFile is a good fit.
At $49, you’ll be able to take advantage of the following features: free registered agent service for one full year, one-business day preparation, order tracking in real time and one-on-one business consultations. You can read the review for more info!
CorpNet is another excellent incorporation service founded by a husband-wife team of entrepreneurs from California. Like IncFile, it also offers affordable pricing with its most basic package priced at $79.
You’ll also be able to use features such as 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!
With an A+ BBB rating and an unparalleled track record, BizFilings is one incorporation service that you have to try first hand. With a mid-level price of $99, you’ll be able to use its services which include one-day business preparation and filing, business name verifications, registered agent service and a lot more. You can read the review for more info!
Majority of online incorporation providers offer the same services, but they also have distinct features which are only exclusive to them. For example, BizFilings offers a free registered agent service for 6 months, however, IncFile offers this services for a full year. IncFile offers free business tax consultation while BizFilings does not.
BizFilings on the other hand has a compliance tool called the BizComply that IncFile doesn’t have. Between BizFilings and CorpNet, the former has a learning center that the latter lacks. All these are just examples of their feature differences, but at the end of the day, whichever tool you use, these 3 are the best!
Responsible business ownership means that your top priority is to protect your business and consumer rights and the only way that you can do this is if you incorporate your Idaho small business.
There are so many misconceptions about incorporation that even the savviest entrepreneurs come into a crossroads whether to incorporate their companies or not.
If you decide to incorporate your Idaho small business, choosing the best business structure is the next challenge. You need to match the entity of your choice to factors such as tax obligations, risk liabilities, business objectives and a lot more. Whether you decide to incorporate your business on your own or through the use of an online incorporation service, the most important thing is you’re fully convinced of its purpose.
The needs of every business is different, the law also varies from state to state. It’s worth to spend an hour or two consulting an experienced attorney to give you options and explain the risks of your decision.