Inexpensive Incorporation "Teaser" Advertisements
You see the advertisements all over
the Internet. "Incorporate In Nevada, $99.00 Complete."
There is even a major legal form site advertising on TV for
a very low "teaser" rate. But when you look behind
these offers you find out that this only includes part of
what you need to complete your corporate organization. Sure,
they will file your Articles of Incorporation for that fee,
plus the cost to be paid to your state's incorporation office.
But you need much more than that to really organize your Corporation.
Incorporating Requires More Than
Just Filing Articles of Incorporation
Filing your document with the state
will commence your corporate existence. The state filing is
usually a very skeletal document and does not include most
of the operative items that you will need to complete you
corporate organization. In addition to the state filing, you
need to file necessary forms to get an employer identification
number, file a small business tax election in many cases,
take actions to set up the legal internal structure of your
company, elect officers and directors, adopt bylaws, create
a minute book, get share certificates and a stock ledger,
enter subscription agreements with the shareholders, and make
a variety of other decisions regarding the structure and operation
of your business.
The Real Costs Behind The Inexpensive
Incorporation "Teaser" Ads
You can get most of these items through
an incorporation service or an attorney, but they are all
additional "add-on" items and each has a price tag
attached. By the time you get everything that you need, plus
the cost of physically shipping all of these items to you
and to the state offices, you will pay between $300-$500,
and sometimes more, to incorporate your business. This does
not include the state filing fee which obviously can not be
avoided. Attorneys will charge even more with an a basic incorporation
fee running between $500-$1000.
The Little Secret That Incorporating
Services Do Not Want You To Know
There is a little secret about incorporation
services that they do not want you to know but which I can
tell you because I have played the game while practicing law
for 15 years. The secret is that a simple incorporation is
based largely on uniform forms. The incorporation service
has you complete an online database form. They then merge
this information into their standard forms, print them out,
put them in the mail, and charge you these high fees.
Trying To Translate Bricks and Mortar
To The Internet
I cannot blame incorporation services.
They have to make money. They have many employees, rent to
pay, and all the other expenses of a normal "brick and
mortar" business. Most of these services were around
long before the Internet took over. They are stuck with their
business model. They use the Internet as an advertising medium
for their brick and mortar business structure. But they have
not adapted their business model to embrace the Internet.
So when you pay an incorporation service to form your corporation,
you are not leveraging the Internet to its true financial
benefit.
Changing The Incorporation Service
Internet Paradigm
The Internet has enabled our company
to truly let the Internet change the way incorporation is
done. Instead of having you fill out an online form, having
us click the mouse, merge, print and mail your documents,
we permit you to download the entire system so that you can
do this all yourself. We provide complete instructions and
resources to assist you along the way. You fill in your variable
information and execute the merge function to create your
own documents. Rather than needing a large office, employees,
secretaries, and other "brick and mortar" expenses,
we are able to maintain this delivery method with minimal
human interaction. We are always here to assist you with your
product if necessary, but we find that our support is rarely
necessary.
Using our products you are paying for
the product and not to support a large brick and mortar enterprise.
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