Most small businesses are not receptive to change as they have their fixed ways of doing things. But, the old ways don’t work that well in the constantly changing economic landscape of today. One of the decisions that face many owners is turning your business into incorporation. This process is known as registration and can vary according to the type of business you own. There are plenty of factors that determine how long it will take for you to register your business.
The first question that arises is- do you need to incorporate a firm in the US? Well, if you are planning to sell well via the Internet or wholesaling commodities to US-based firms, then you may not feel the need to form a company. There are other factors such as different tax rates in different states, cost of transportation, regulations related to tariff and trade, issues related to leases, etc. But there is an important aspect that you should take into consideration. Your US-based customers are more likely to trust a corporation based in their home country, rather than purchasing from the web. Hence, registering your business in the US is more desirable than it may seem.
The Incorporation Process
Now comes the part where we learn how to incorporate a firm in the United States. The incorporation of companies in the US happens at the state level. Though there are slight differences from one state to another, the process has two steps. Firstly, you have to apply for registering your business in a particular state. Next, you need to establish a registered agent who possesses a valid physical address in that state. Generally, a registered agent is either the owner of the business or any other person assigned with the responsibility to receive all the legal documents related to the business during standard work hours. Therefore, for a company’s transformation into a corporation or an LLC (Limited Liability Corporation), you must submit the essential documents, and pay the filing fees to the authorities.
The formation document for a corporation is known as the Certificate of Incorporation. It constitutes the legal proof of a company’s formation. The corporation or LLC must disclose some information in the formation documents. The residents of the United States need to disclose their Federal Tax Identification Number (also known as EIN) to get started with their business. A Social Security Number may also be required to complete the formalities. From the above information, you can say that the process is long and comprises multiple steps. And needless to say, there are some pros and cons of the process itself.
Recommended Reading – Mitigating risk through shelf corporations- Part 1 & Part 2
Advantages of incorporation
Talking about the pros, we all know incorporation is a mandatory process if you wish to register your business. And whenever you do, you gain the complete control to run the business the way you deem it fit. In addition to that, you get access to much wider credit opportunities. What this means is that it is more likely that creditors and financial institutions will take you seriously when you buy an aged corporation. You can reap all the profits that your business generates while reducing your liabilities to the paid-up capital of the shelf corporation.
The Cons
But when you talk about the cons of the process, there are a few issues that come to light. First and foremost, the process is thorough and extensive, and so consumes a lot of your time. This process can drain you out of energy that could have been spent elsewhere in something productive. The process is also costly.
Shelf corps to the rescue!
In such circumstances, shelf corps for sale can give you considerable benefits. Some vendors already have aged corporations with credit, which are ready for use. With all the paperwork done in advance, all you need to do is pay for the processing and registration fee. And in a few hours, the vendor will initiate the transfer process, and you will have a certified aged corporation for your business dealings. With the money and time saved, you hire an attorney as well as a tax accountant for your business. Let’s have a look at how these two types of people can be beneficial for your business.
Attorneys/Legal Advisors:
The need for hiring an attorney is inevitable. Not every business owner holds expertise in matters concerning legal issues. Situations often arise where you need to get in touch with someone who specializes in these aspects. Imagine being sued by an employee for wrongful termination or discrimination. Even worse, suppose you get summoned for legal violations by a court of law. These situations can be bothersome, but not when you have your attorney by your side. He or she can take care of the legal aspects of your business. At the same time, you can focus on generating profits from your Wyoming shelf corporation.
The significance of legal guidance cannot be understated because most owners of shelf corps for sale lack the knowledge and experience required to handle the law. It is well known that transactions related to a business require plenty of documentation, review, and negotiation. A legal advisor or attorney is well qualified to handle all these aspects related to your business. Their sole responsibility is to protect your legal as well as business interests. Also, when it comes to handling business contracts, there is no one better suited to handle it other than an attorney. Not every contract you get into is a valid contract, and you need someone with you who has the skills to tell you this. An attorney should have the legal insight to save you from the consequences of any illegality before it can happen. He or she also makes sure that the legal rights of your shelf corp are always protected. When you invest in their services, they thoroughly the contracts you are about to enter into, to reduce legal risks at the outset.
Also read – Save Tax- Register your Shelf Corporation in the US
Accountants:
Accountants provide an essential service to most businesses. Their work, though, is often misunderstood by most of the public. Accountants play a crucial role in ensuring that the quality of financial reports is up to the mark. It would be justified to say that accountants are the ones on the front lines when it comes to safeguarding the quality integrity of financial reports.
Their work is not limited to financial reporting only. The world of accounting is enormous. From cost accounting to management accounting to forecasting, you can hire specialists for the job if you so desire. Accounts also play a huge role in assisting businesses with corporate strategies, minimizing risks, and offering valuable advice. They also deal with a wide range of issues that are related to safeguarding the interests of stakeholders. Accountants ensure that they must help a business to maintain high standards, both financially as well as ethically. The public image of the shelf company for sale plays a vital role in promoting an organization’s growth. The trust and faith of the people can massively impact the rise or decline of any organization.
Consultants
Both accountants, as well as attorneys, play a vital role in the daily hustle of the organization. But there is one more player that you need to add into the fray to make sure that your team is well equipped. And that player is known as a consultant! Most corporations for sale are not sure whether to hire a consultant or not. Firms run by senior management often feel that consultants may expose their inefficiencies to run the business. It is fair enough to say that they fear the expertise possessed by consultants. But this way of thinking can be counterproductive and cause you unexpected losses.
The first and foremost thing that consultants offer is a piece of strategic advice to the business owners, that too, from an unbiased point of view. Business owners have invested a significant amount of time, energy, and money. Thus, they need someone to guide them and safeguard their interests. The management of these companies often get blindsided and are not able to identify issues that can cause massive losses.
Looking from an unbiased perspective of an outsider, consultants often come to the rescue and provide solutions to the problems that were holding the company back! Earlier, we emphasized the part that accountants, as well as legal advisors, play. Consultants are capable of performing the roles of both attorneys as well as accountants while making sure that your company is sailing along with the latest business trends and strategies. These skills help you to stay ahead of the competition.
The best shelf corporation consultants in the US
We, as a service provider, not only help you buy shelf corporations but also help you in terms of planning and strategies. Our consultants come equipped with the appropriate knowledge of concepts such as Paydex scores that are needed to help your business to reach the horizons of success. We can also guide you in choosing the best business structure and create credit ready firms. Choose wisely and see your business prosper.
Explore more on Shelf Corporation – When should you buy a Shelf Corporation?
