Forming Your Corporation

Welcome to this module, forming your corporation. So this is going to be an action-oriented module, lots of good details. And just by the end of this module, you will have an actual business entity, which is phenomenal for many of you guys if this is your first time forming a business entity. And you’re going to be doing it the right way, the first time for the long-term to start building generational wealth for yourself and your family. So this is super, super exciting. So I have scrolled the internet, all my resources, everything, to be able to find this information, to make it really, really succinct, quick and to the point. So whether you’re a forming, an LLC or an Inc, doesn’t matter, I’m going to show you step-by-step, how to do that in this particular module. So here is what we’re going to cover.

So the first thing I’m gonna break down is forming your C corporation. Then I’m going to break down how to get your articles of incorporation forming an LLC, articles of organization, because an LLC has to do with an organization, how to do this without hiring an attorney. And then also I’m going to show you how to hire a service for this as well. I’m going to break down also the best states to incorporate in bar none, the biggest piece of advice and information that’s going to help you change your perspective on this. And again, I’m going to make these recommendations and even provide a sheet on the best states to incorporate it. If you choose not to incorporate no states, not to worry, it’s totally fine. I’m still gonna provide resources, how to incorporate in your own local state. But the reasons why I’m going to recommend it is I’ll cover that or a number of reasons as to why I’m recommending the states, whether it’s an LLC or an Inc.

So let’s go ahead and get into it. So the first thing you want to do is you want to choose a legal name for your brand new business or your new business. So once you get over to the point of identifying which state you’re going to incorporate in, it’s as simple as going to the secretary of the state’s website, and then just doing a search for that entities name. If no entity pops up under that name, that means by definition, that entity name is available. And the other thing is, guys, don’t get too caught up and hung up on the name. One thing I will say upfront is to keep the name very generic. Okay. So you want to do things like, for example, your last name, enterprise, your last name and associates your last name and incorporate it.

So for example, you can do let’s just say my last name is Conwell. So I can do Conwell Enterprises, Inc. It’s really, really general. It’s real simple. And I would avoid using names that have anything to do with investments. I would avoid names that have anything to do with real estate. I would avoid names that have anything to do with insurance. I would avoid names that have anything to do with dealerships. I would avoid names to do with anything. And I’m going to provide this in another section. And basically industries to watch out for matter of fact, I’ll provide that document here as well. So there’ll be a restricted industries list below this video. Now that I’m thinking about this, I’ll include that because you want to avoid those industries because from a naming perspective, because it doesn’t mean if you’re in real estate that you can’t be in real estate.

But what I’m really saying to be clear is you don’t want your name to have real estate in the title per se, when it comes to funding, because those companies are generally looked at or looked on upon as, Hey, look, this is a higher risk company, right? So you want to keep it generic. So anyways, all that to say, you want to go and search your corporation’s name or short search the business name again, keeping it really, really general. It can be black associates, Inc black consulting, Inc. For example, I’m not saying the name of the color, but you get the point. You can do your initials of your name. So if your name is, if your initials are, you know, CCS, you can do CCS enterprises, CCS consulting. Okay. I want to belabor the point, but it’s so important that you understand that.

Now, like I was to say, you can search that name and then what I’m going to show you how to do. And I’m going to provide a sheet on how to do this. All you’ll do is go to that section. You’ll go to that website. And generally speaking, most of these websites, all 50 states are going to have a secretary of the state and you can form this online. You don’t necessarily have to already have a template because the majority of states you can do this online and the no states I’m going to recommend their process is extremely easy to do online. You also want to obtain a registered agent in a commercial address. So I’m going to provide in this sheet where you can get a registered agent, because again, you don’t want your name to personally be on there. Technically you can be a registered agent, but it’s not, it’s not wise for you to be your registered today agent because this information is public record.

It’s always recommended that you have a separate entity person service act as registered agent with their business information. And you really limit the amount of your personal information from being on this entity, right out the gate, because this is public record. And then, then you also want to make sure you have your commercial address. So if you don’t already have a commercial address, make sure by the end of the completion of this particular module, you go out and you find a commercial address. Even if it’s as simple as using the anytime mailbox, assuming it does not have that particular personal PMB, letter above it, or before it, you can just use a virtual address, but make sure you have that address because this information needs to line up. Okay. Also, you want to establish who your investors are going to be.

If you’re forming a corporation, technically, your investors or shareholders can just be you. If it’s just yourself, if you already have people went to invest, then you would include those individuals, but it’s not necessarily to do it if it’s just you. Also you want to create an issue, stock certificates to your shareholders assuming you’re going to have those, those individuals nine times out of 10, this is going to be you. So you can just do it on your own. It’s not necessary to really get the entity form, but this is something you want to consider and then apply for a business license. So in that state may require a business license. Like your state may require a business license in your county or township. Again, the ones I’m going to recommend generally are not going to require a business license. And if they do, I have a detailed sheet that explains if they if they do require a business license and then the specific link to go to obtain that business license.

And then if you need any other certificates based off your state to conduct business, then you want to make sure you do that in your particular industry. So, for example, again, I already kind of beat this home, but again, if you’re in a real estate business, the insurance business, the credit business, any business that requires an investment business, any business that requires a license, you want to make sure you already have those particular licenses on your person, not necessarily for your entity, so to speak, at this point. However, what I’m also saying is that make sure you have the appropriate information in that particular state to operate legally, okay. In that particular jurisdiction. Now few things. So when you’re forming your own corporation on the next, in the next module, I’ll go into more detail about how you can get an EIN number, but essentially you want to make sure you do this and you apply for your EIN numbers once you have your corporation complete. And then sometimes, you may want to apply for ID numbers that complete the other formalities required with your state and local government agencies.

Some states are going to have an ID number specifically for that state and some will not. You’ll, you’ll want to just make sure you’re consulting with the appropriate parties in order to do that. And then I’ll provide you a resource assuming you don’t want to use the recommended states, which I’m going to highly recommend you incorporate in the states that I recommend for your initial entity. But assuming you don’t, I’ll still provide a list that will walk you through how to get this information. And then again, like jurisdictions, when I say jurisdiction, when I’m referring to, is that particular state, okay? And all states have different jurisdictions and they will have different things for unemployment taxes simply and payroll tax.

Now, many of you guys won’t even be getting into this stuff. You just really doing this to incorporate a company, but this just is something to consider. Also, you want to assign any positions require in the business that you’re required to by law. So positions are just people who are going to be in your particular corporation, such as a secretary, a president, and then I believe it’s the treasurer. So in all three of those people can really just be you for all pretense purposes. Now that’s forming your corporation. And again, below this video, I’m going to have a detail list and I’m going to bring it up during this particular module as well, to show you the list. But a matter of fact, I’ll just go ahead and do that now. No, actually no, no. I’m going to finish explain the LLC then I explained that next.

So forming your LLC, very, very similar to a corporation. You want to choose your legal name, just like what I was breaking down on the previous statement, I’m going to have to go in and belabor the whole name thing. It makes sense at this point, not to use those restricted industries and again, review the restricted industries list to make sure that you’re not starting your name up to be with that name, keep it generic. Okay. Even if you are doing business as a different business entity, let’s just say MyMoneyEDU, you can have a totally separate business entity for legal tax and also funding purposes. Okay. The secretary of state is going to have the different names, very similar to the corporation. So this is exactly the same. Really. The only difference is instead of you forming a corporation, you’re just forming an LLC like, so everything is basically the same.

You need to establish who the members will be, which in most cases is just going to be you. And then you want to apply for the business license, just like you would, if you are in that particular like if you’re doing a corporation and then apply for any type of certificate to conduct business. So basically the same exact stuff as setting up a corporation, the only difference is you’re forming a limited liability company. All right. So in the same exact thing holds true here, especially when you’re getting your EIN number. So in the next module, I’ll cover how to do that. Some of these services that I’m going to suggest that you use, assuming you don’t want to do the steps on your own, they will apply for EIN number on your behalf for a fee. Or you can just go into the next module and I’ll show you how to do it on yourself.

And again, the same exact thing like I was covering before with the corporation, and then you want to assign any position. So at this point, you’re going to be the only position in the LLC, because it would technically just be a single member, LLC, unless you have other business partners that you need to form the LLC with. Okay. Which in my opinion, I would just do this on your own. Okay. Now you want to review the best states to incorporate in. So generally, the states that I’m recommending are simple to form your entity in, they’re going to avoid state tax, they’re gonna offer more privacy, and then they’re going to have less ongoing maintenance once the entities are formed.

Now, I’m going to pull that sheet up right now. And right below this video, in this particular module, you’ll see best states to incorporate in. You’ll just want to open up that particular sheet. And then here is the sheet. Now you’ll notice that there are two tabs, one for an LLC and one for corporation. Okay. Now these are the four states that I’ve identified are the best states to do a corporation in Inc. Okay. Those states are South Dakota, Wyoming, Delaware, which many people are hoarder of Delaware companies. And just a fun fact, 60% of all the public companies in the United States are Delaware corporations. And then the another favorite is Nevada.

So all four of these states are the best states to make an Inc in. Now, one thing you’ll notice is that what, what I’ve done is I’ve outlined the total fees to incorporate a entity in these states with South Dakota, South Dakota being $244, Wyoming being $195, Delaware being $334, and also Nevada being $275. Now these fees are assuming you are going to do this on your own. Now, assuming you were going to do Dakota South Dakota incorporation, you can see that the articles of incorporation fee or the state filing fee is $150. And then the renewal is, is a $50 renewal. And then you can go directly to this state. And then the notes is telling you, you must apply online or fee or fees may increase. So I will recommend you use this link, you open it up. It’s going to take you directly to that particular website.

And then you’ll be able to follow the specific steps to form that particular corporation. Now, every secretary of the state is different. So what I would do is come right down here. It says articles of incorporation, file online. And then I would just follow the steps, start a new business. And it’s fairly simple, right? It’s fairly simple stuff. Step by step. If you need to call them directly, you can. But essentially, there is that. Okay. Now the other thing that’s really important is a registered agent. Okay. It’s also going to tell you if you want to do a DBA, with that fee is, but if you want to do a registered, actually not one, I’m going to recommend that you do a registered agent and you do a registered agent service. So again, if we were trying to get a registered agent for Dakota, again, the registered agent is just a person who does the articles of incorporation.

You do not want to be the registered agent. So you would just click on registered agent right here. And then it’s going to say, hey, look, if you want us to be a Dakota registered agent, we can do that. It’s just a one-time fee of $49. And you can order now which I’m going to highly recommend that you do this, assuming you want to form your corporation. So you would almost do this first. You would actually start this process first before you actually file the corporation cause they’ll basically be the registered agent on your behalf. Now one cool thing too, I’ve included here is does it have state tax? Does it have a state license? It does not require a state licensing fee is $0. And do you have a certificate of good standing? There is a one-time $20 certificate of good standing, but you’ll notice that this has been outlined for each one of these for each one of these corporations.

Same thing with Wyoming, you’ll see the fees here. It does require a state license with this one, as opposed to the other one, you can see that the fees will be lower here. Again, Delaware is breaking down the fees here and then a renewal fee. So again, that’s another thing you want to look at is what the renewal was going to be for me to keep this corporation active. And that’s pretty much it, man. So it’s pretty straightforward. So let’s just say I was going to go in one last thing. I want to show you too. One last thing I want to show you. So let’s just say, I wanted to form a Delaware corporation, which I’m not telling you to form a Delaware corporation, but let’s say I wanted to form a Delaware corporation.

Well, I got two options. Option number one is I can do it myself and I can follow this particular, I can go to the Delaware secretary of the state, and then I can just essentially just go here and just figure it out. Okay. And this is my first time actually even looking at the Delaware state deal. So I would probably click on E-services and then let’s see here E-filing forms, calendars. It would probably be under E E-services. Let me see, E-filing and then you would do, let me see the file status. I’ve never been on this website, so please forgive me. But essentially I’m not going to figure it out here. You can figure out how to do a corporation here and I’m going to just type in corporation.

I’m just gonna type in corp, hit search, corporate bond and view. I’m actually not going to figure this out. So what I would recommend if you’re forming a Delaware corporation is you can do it yourself and you can see the fee and the fee is a lot less because it’s a little complicated or you can click on Delaware, registered agent, pull up this website, like just like, and you’ll notice this is the point I’m trying to convey is that all of these registered agent services have the ability for you to be a registered agent. They can be a registered agent for you, or they can just form the business for you. Okay. So if, if this is me and I’m forming a Delaware corporation, I’m coming right here, get started for a total of $180. Nice and easy. Okay. And I’m going to go ahead and choose my entity type.

I can do an LLC or corporation. I would just choose corporation because Delaware has really favorable corporation deals. And then I would just do the desired name. Okay. And then I would just basically, go through this process. Now, do you have a reservation? It’s going to break down what that means and everything is here. And then you can just say, I want them to be my registered agent. And then you can do standard one to three days or expedited at one day, I would just say, do standard and annual renewal. I would just include that. And then you can just put your corporate information here. So you will put your president’s name, which would be you, you can make the secretary somebody else, or it can be you and you can make the treasurer somebody else, or it can be you. Those are the only officers you need to start this corporation.

You don’t need to add any other people if you want to, you can, but you can see really what I’m breaking down is really simple, right? And then if you want to have phone services, you can include that, tax ID. If they, if you want them to form the tax ID, they’re saying they’ll do that for an extra 50 bucks. So basically guys, it’s really, really simple to set this up easily using the registered agent services, but the same thing holds true for every one of these. So if I wanted to form a Wyoming, I will go right here to the Wyoming registered agent. And then I can either have them become a registered agent or I can click on service resources and then forming a corporation access foreign corporation. So I probably wouldn’t do that one. I will come over here to, where is that foreign corporation and how to form a corporation.

And then right here, you can see they’ll do it for 150 bucks, right? And then I would just follow form a company 150 bucks. So I would just go through them because this is what they do. And it’s pretty straightforward, pretty simple. And then also on this list, assuming you want to do an LLC and not necessarily a Inc, I have a list of the best states to do LLC in, and they’re not the same as the Incs. So these are the best states to do LLCs in. And you’ll notice that none of these are the same for Incs. So if you want to do the same, if you want to form an LLC, you could do Missouri LLC, Arizona LLC, Mississippi LLC, and then New Mexico LLC. And all of these cover this specific fees associated with it in the steps. So again, you can do this yourself.

You just have to follow the steps. It’ll be a little bit cheaper if you do it yourself and you’ll just need to follow the steps, um, here. Okay. We’re not in a corporation service. So please do not email us asking us questions. I’m providing this detail spreadsheet, just so you can do your own research. If you don’t want to figure it out on your own, my recommendation would be using when the registered agents service registered agent services and they’ll handle that on your end. And now one more time, these are the best states to form LLCs in. These are the best states to form incorporations in. If I’m you and I’m starting out, I’m forming a corporation. And if I’m you and I’m starting out, I’m either doing a Nevada corporation or a Delaware corporation, one of the two, okay.

One of the two. And if you want, you can go to the Nevada, registered agent and have them handle the entire process. I have noticed that Delaware seems to be the cheapest to form, and I just showed you on that Delaware deal. Now, if you want to be, let’s just say, look, I just want to form a corporation in my particular local state, then right below this video, you’ll notice a list of registered agents. And if it’s not already obvious, all you need to do is just go to your particular state right here. So let’s say you wanted to do Georgia, which I wouldn’t recommend you do a Georgia corporation because the state tax is ridiculous. So let’s just say you wanted a former Georgia corporation. You would just click on here on the registered agent. And you’ll notice that there’ll be a registered agent for $49, or you can just get incorporation right there and they’ll do the entire process for $299.

So essentially guys, if you don’t want to get into the formality and all of this does have one of these registered agents do it in your state. Now, again, I am highly recommending if it’s not already crystal clear to do your corporation. And one of the corporations that I’m recommending in this particular corporation’s tab. Okay. And if you want to hire a service, if it’s not already clear, now, it’s my last bullet point on this is just use one of the registered agent services to do this on your behalf. You do not have to hire an attorney to do this. You now know more about business entities in 99% of the population, because I just educated you on it. So now you just need to use these resources and apply the appropriate and then supply the information. Okay. So, hope this helps. And I will see you in the next module, getting your EIN number. And then again, if you go with one of these registered agent services and you choose to have them do your incorporation, then I would just recommend you pay the fee for them to do your EIN number as well. And just let them do the entire packet for you from A to Z, pay the fee, they’ll send everything to you, and then you’re good to go. If you want to be tedious and figure it out, in the next module, I’ll show you how to do and how to obtain an EIN number.