However, incorporation is also complicated and requires a number of steps and legalities in order to become an incorporated business. But you don't need to hire a lawyer and pay high fees to have your business incorporated. Many business owners are deciding to incorporate their businesses themselves.

Incorporating a business requires a number of steps. Certain licensing, paperwork, and fees are required in order to declare your business as a corporation. There are several types of incorporations that can be made, including international, in-state, and out-of-state, so there are many factors to consider before deciding to incorporate. It's best to discuss the requirements with your accountant, but as a general rule, the steps involved include:

1. Location of incorporation. The first thing you will need to do is decide whether you want an in-state, out of state, or foreign incorporation. As a general rule, smaller businesses decide to incorporate within their own state. This makes the most sense.
2. Pre-incorporation paperwork. Next, you will want to draft up and enter into a pre-incorporation agreement. This is done with the other founders of the business for the purpose of deciding who will serve on the board of directors. It also helps to make stock decisions, such as who will buy stock and how many shares. You can find software that will help you do this, or templates on the web.
3. Application of Registration. Once the pre-incorporation agreement has been signed, you must file an application for registration of the name that you want to incorporate (the business name.) The Secretary of State's office has the necessary forms. Once you file, the office will tell you whether the name you have chosen has already been taken or whether you will need to find a new one.
4. Forms. When the application of registration has been approved, the Secretary of State's office will send you a number of incorporation forms for your business that you will then have to fill out. These documents include a certificate of incorporation, which includes the name of the company, why it is being formed, where the company is located, and various other information.
5. Sign documents. The certificate will then have to be signed by the owners and co-owners of the business. After this, you will then hold a stockholders' meeting upon receiving your charter from the state.
6. Elect board members. The last step in incorporating involves instating corporate bylaws and officially electing the board of directors. Once this is done, you will send the agenda to shareholders.

Making the decision to incorporate can ultimately offer you as a business owner greater savings and more protection of personal assets. In addition, there are many tax advantages that are associated with incorporating a business.

The above steps are those you will need to take to incorporate your business. Because it can be complicated, it's not a bad idea to seek the advice of others who have also done it.