Incorporating yourself is one of the easiest ways to save money on incorporating a small business because you will only have to pay the required filing fees, you will not have to pay any lawyer fees or service fees. The one thing that you need to be aware of is making any kind of mistakes, which could end up costing you even more money than paying somebody to incorporate for you.
One mistake that people make when incorporating their own small business is that they choose the wrong business structure. This ends up being the most costly mistake because you cannot change your business structure once you have incorporated. To ensure that you avoid the costly mistake you want to thoroughly research all business structures so you can choose the best one for your business.
Another costly mistake that small business owners make is they incorporate in a different state, such as Delaware or New Jersey, because of how popular it is to incorporate in those states. What you need to remember is that despite the popularity they are not always going to be your best choice for incorporation, most small businesses are better off incorporating their businesses in the state that they reside in or where they will be conducting the majority of their business. The only time you should really incorporate in a place like Delaware or New Jersey is if your business expands into a number of states.
Naming yourself the registered agent for your corporation is another mistake that you need to avoid. One reason for this is that the registered agent has to remain available during business hours, there is no vacation time for them, and so you would be limiting yourself to what you can do. Another reason to avoid doing this is having a third-party registered agent can also help enhance your business’s credibility.
