How to Incorporate Your Business Easily and Protect Your Personal Assets

If you’re thinking about starting or expanding a business, you probably already know that your personal assets can be at risk. Keep reading to learn how to incorporate your business right away. You’ll discover that incorporating your business separates it as an entity and will protect you from personal liability.

Separate Your Business Entity

One way to protect your personal assets is by separating them. This makes your business entity a different “person” not connected to you or your personal property. Incorporation is not the only type of entity you can consider.

For example, you can start a sole proprietorship or a partnership. Some benefits of these legal structures include your business’s essential paperwork and simple structure. However, it also has disadvantages, such as the potential to be personally responsible for any business debt or legal complaint. 

You can also consider a limited liability company, which is a separate entity from you. This type of business can have loans of its own.

Prepare Articles of Incorporation

As a business owner, it’s also crucial for you to file articles of incorporation. That means you should prepare all the necessary documents with the state secretary or a similar government agency.

But before preparing these files, ensure you have a registered agent who guarantees you that your fees are paid and that your yearly corporate filings are not late. 

Some things to organize or establish include:

• The founder of the corporation or the “incorporator”
• Corporation name 
• The location of transacting the business of the corporation 
• The founding members or directors of the corporation and their addresses
• The legal purpose of your business 
• The registered agent’s name and address 
• Signatures and address of the memes 

Manage Your Money

Finance strategies will help make incorporating more successful. The first step is to establish a corporate bank account. Doing so will ensure your business expenses and savings differ from your personal ones. 

A business bank account also shows potential lenders and insurers that you have established your company’s independence. It’s proof that your corporation is legally separated and protects you from any related liability.  

Obtain Permits and Licenses

The permits and licenses required for incorporating your business depend on a lot of factors, such as your location and business type. For instance, if you are planning to open a large corporation, you must file it with the state only after meeting with your board of directors. 

Some of the standard permits and licenses you might consider include food handler permits, sales tax ID numbers, and professional licenses for every expert. Visit the Department of Corporations of your state for more information. 

Get Insurance

Getting insurance is one of the many ways to protect your business after incorporating it. You can consider many policies, such as general liability insurance, product liability insurance, and professional liability insurance. But if you’re primarily concerned with your property, try an umbrella insurance policy to protect you beyond the usual policies.