Corporation Question
I want to register corporation in Oregon myself. I bought an Incorporation Kit at Office Depot. I am starting new corporation and if I understand correctly I have to file Articles of Incorporation with the Secretary of the State, pay $50 and I am ready to go. I checked names and there is no business caring the same name in Oregon. Then I have to contact IRS, open bank account in company's name.
Why do people say that incorporating is very expensive? Is there anything I'm missing here?
Thora:
I paid around $3k to an attorney a few years back to set up my corporation!
She wrote up all of my articles of incorporation, did the stock certificates and filed all the necessary paperwork.
This was before they had all of these new set-up your own corporation deals on the internet like they do now. The only problem I see is if your articles of incorporation do not describe what you are doing with your corporation, you may not be protected. Also, there are a lot of
details that need to be followed such as
the first board meeting, stuff that needs to be filed with your state, stock issuance etc... If not done correctly they say your corporate shield could be pierced. I am not saying you should pay $3k like I did, however I would at least consult with at least a paralegal and make sure you have filed all the correct documents and your articles of incorporation look ok. I am not an attorney, I just feel if you have substantial assets that you want to protect, you need to make sure your corporation is set-up
correctly. Also, you will have to pay a fee per year to operate as a corporation which is around $500-$1000 depending on the State.
One last note, are you going to set-up a
sub-chapter S corporation or remain a
C corporation. There are certain time frames you must file in order to be considered for sub-chapter S status.
Robert Kiyosaki has a great book out on corporations I would recommend you read.
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 04/27/2004 ][ Edited by JeffreyAdam on Date 04/27/2004 ]
There's nothing new about cheap DIY Inc'ing, and anybody who can read can do it online now in most states, very simple process...and there's NO need to hire lawyer, or expensive service to inc. or LLC in one's own state.
Now, if you're inc'ing or want new LLC in another state, you'll have to appoint an Agent for Service in that state, and that will cost you an annual fee, but you can even do that yourself, and if you'll look at ads in Money or some other financial magazine you'll find ads for cheap AFS companies who will act as your AFS in any state.
I have an attorney that charges me strictly by the hour. My first enity was around $250+state filing fees. Now since all he has to do is change the name he does it for less than $20 (actually is paralegal does it). My attorney serves as registered agent and I get friendly reminders on everything I have to do. Well worth the money to go with an attorney. Check around and tell them that you realize that it will take about 20 minutes for the paperwork and want to be charged 20 minutes of time rather than $500-1000+
GOOD LUCK