If you are planning to start your own business, you should review information on your state website on how to incorporate.

1. Decide whether you really need to incorporate. You can manage a business personally, either using your own name or using a trade name. Incorporating gives you some benefits, such as limiting your liability and making your business easier to transfer to others. However, you can often achieve similar results without going through the bureaucratic hassles of incorporating. For instance, if your business requires liability insurance, a broad enough policy will give you effective limited liability regardless of whether you have incorporated or not.
2. Decide what type of entity to incorporate. In most of the U.S., you can form a corporation or limited liability company (LLC). Some states may have other forms available as well. Each form has different liability and tax implications. Research the laws on incorporation in your state so you are familiar with the information and know how you wish to proceed. The internet provides a wealth of information on this subject, and especially your state government website.
3. There are three options available to form a corporation: research your state website and complete the forms yourself, pay an incorporation service company, or hire an attorney to complete the incorporation.
   • Incorporate yourself by visiting the appropriate website for your state or going to your local courthouse. You will need to research your business name you have chosen first, to make sure of its availability. You will then need to obtain the forms to register your business name.
   • Hire an Incorporation Service Company to do all the paperwork for you. These companies will fill out all the papers relatively inexpensively, but they may not provide much value added advice. Hundreds of these companies can be found be doing any internet search on "LLC Formation."
   • Hire a Lawyer to Incorporate You. A local attorney will probably be the most expensive of the three options, but he might also save you money down the road by guiding you through potential pitfalls.
4. Once your corporation is formed, you will need to make certain filings, such as tax filings. You can obtain information on legal filings from your state's secretary of state, and tax information from the IRS website.

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