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    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
    		  
    #1

    Jan 24, 2013, 02:20 PM
    What Do I Need To Do For Corporation?
    My wife and I started a used car lot and we have now gotten to the point where we think it should be a corporation. Yeah, I know... spare me the lectures about how we should have started that way... we realize we should have but it's too late as we didn't do it that way.

    To now make this a corporation, how much of a problem is that?
    dontknownuthin's Avatar
    dontknownuthin Posts: 2,910, Reputation: 751
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    #2

    Jan 24, 2013, 02:38 PM
    It's not difficult but I would recommend that you get an attorney to advise you on the best type of corporation to set up. It can impact like liability issues so it's important to choose the right type of business entity.

    Once you decide on the type of business entity, you have to register it with the Secretary of State in your state. Sometimes counties and cities/towns also have registration or licensing requirements. There is generally a fee.

    It can also be beneficial to consult an accountant on a regular basis on your business decisions, such as how to separate the business from your personal finances. This can be important because, if the business fails or someone sues you, you will want to make your personal assets untouchable. Similarly, if you have a personal financial problem such as a personal bankruptcy, you will not want creditors to be able to go after your business' assets.

    It's not a complex legal issue to consult on this type of thing, and any money you save in legal fees doing it without a lawyer are what I'd consider foolish savings - it won't be that much, and there are times in life when you want an expert. I think this is one of them.

    Good luck with your business.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jan 24, 2013, 05:56 PM
    Really many people start as private business and latter change to corporation.

    Many choices as to where to incorporate, a person does not always do it in the state they are at, but most do. Each state will have its own requirements, and normally you can find those at the Secretary of State web site for your state.

    I do agree at least sitting down with an attorney and perhaps your accountant, since this will change book keeping, it will change tax structure, and many other issues.
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