If you are starting a business and in some ways your business is an extension of your self but there is financial connection beyond the emotional connections. A business is built of people with energy and vision and those who have successfully made the leap know that its important to have a corporation or partnership in place. As the complexity of your food business increases planning becomes much more important and the benefit of a detailed business structure is that it will keep all parties focused and on track. The complications around tax penalities can be enough to sink an otherwise healthy business without a proper business structure in place.
Elements of starting a Food Business are:
- Choosing a business structure
- Registering a business name
- Business licenses and permits
- Obtain Federal Tax ID (EIN)
- Register with your State Revenue authority
Thinking bigger than consider the options around forming a corporation, the most common corporate structures are:
- C Corporation
- S Corporation
- LLC (Limited Liability Company)
- Professional Corporation
- Non Profit Corporation
Where to Incorporate?
Typically its best for a small corporation with less than 5 shareholders/owners to incorporate in your home state where your principal office is physically located. While a lot of media coverage has hyped the benefits of incorporating in Delaware or Nevada the costs can often exceed the benefits.
How do I Incorporate?
Companies like CorpNet make the incorporation of a business much simpler but its also key to note that the process can sometimes be tedious so using an affordable incorporation service is a smarter shoice. The basic process for an incorporation starts with the following:
- Name Check
- Draft Articles of Incorporation
- Incorporator executed Articles of Incorporation
- Submit documents for filing
- Standard Processing (up to 3 months) vs. RUSH Filings (as fast as 1 hour)
- Receive your certified documents
- Elect a Board of Directors
- Issue Shares
Using a company like CorpNet to incorporate your business can save you both time and money as their service is fast reliable and affordable with a 100% money back guarantee.
