Converting your pet business into an incorporation

Do you own a business? Has you business grown big enough for you to convert it into an corporation? Or do you want to know how big is big enough for a business to convert it into a corporation? And if it is big enough then in which state should you register it as a corporation? What would suit your business? What would suit your setup? What kind of conversion would help your business in the long term after it has been converted to a corporation?

Not just there primary questions, but then there are lots of other issues which need to be addressed before you go ahead converting you baby into a corporation. For example, questions like your company name, who will be director, and who will be the officers (president, treasurer and secretary); these have to be prepared before you go ahead registering your company as the corporation. You have to understand the differences between registering your corporation as LLC or S Corp. Or you should know what is the difference between INC and LLC. You also have to decide how many shares do you want to issue. All what it means is that company is authorized to issue certain number of shares, but it is not very important unless you are planning to go public and need millions of shares [which is one issue that you must certainly face in future and should make a model that would suit this scalability].

Other than this, you have to decide in which state do you want to Incorporate your business. This is because rules of incorporating business vary from states to states. Some states base their fee on number of shares issued. For example you can have 75 million of shares in Nevada and still pay the lowest filing fee of $75. In Delaware you would pay tens of thousands in legal fees. Some States allow only one person to hold all functions. For example Nevada is like that. You can be director, president, treasurer and secretary.