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Start a Corporation Online for Free: Quick and Hassle-Free
Wondering how to start a corporation online but unsure where to begin? You’re not alone. Many entrepreneurs wonder how the process works and what’s required.
Keep reading to uncover step-by-step insights on how to start a corporation online and make informed decisions for your business.
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What Is a Corporation?
A corporation is a legal business entity that provides the maximum personal liability protection for owners. It is separate from its shareholders, capable of entering contracts, owning assets, and conducting business independently.
It offers robust protection and credibility but requires more formal management procedures, including regular board meetings, detailed record-keeping, and specific tax obligations. Corporations can also issue stock to get external investment.
Willing to start a corporation online by yourself? Follow our comprehensive guide below to navigate the step-by-step process.
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Prefer expert assistance? Based on independent analysis, we recommend you hire Inc Authority to start your corporation online.
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Why We Chose Inc Authority
- 01 100% Free Service
- 02 38k+ Trustpilot Reviews
- 03 24-Hour Processing
Why Should You Start a Corporation Online?
Choosing the right business structure is crucial. While sole proprietorships and LLCs have their perks, corporations offer unique benefits.
Here are some reasons why you should start a corporation online.
Limited Liability Protection
One of the most compelling reasons to start a corporation online is the robust liability protection it offers. Corporations are legally separate entities from their owners, so they shield their shareholders’ assets from business debts or lawsuits.
In comparison, sole proprietors and general partners in partnerships have unlimited liability, putting their personal assets at risk. This makes the corporate structure particularly appealing for entrepreneurs keen on safeguarding their finances.
Easier Access to Capital
Corporations, especially C-corps, are structured to attract investors. That’s because opting to start a corporation online permits you to issue stock. This allows you to raise funds from individuals, venture capital firms, or institutional investors.
Corporations’ ability to issue different classes of stock provides added flexibility to structure investments and distribute dividends. Investors are more comfortable putting money in C-corporations than in sole proprietorships and LLCs.
Tax Advantages and Financial Flexibility
When you start a corporation online, you get unique tax benefits that other structures may not offer. S-corps, for example, provide pass-through taxation, helping them avoid the “double taxation” that applies to C-corporations.
Still, C-corps have the option to deduct many business expenses, including employee benefits and equipment, to reduce taxable income. They can also retain earnings, allowing them to reinvest profits and plan for growth.
Enhanced Credibility and Trust
Corporations provide more professional legitimacy than other business structures. When you start a corporation online, potential clients and investors think that your business is serious, established, and committed to long-term success.
The “Inc.” or “Corp.” designation immediately communicates a sense of stability and permanence. This enhanced credibility can open doors to opportunities that might be challenging for less formally structured businesses to get.
Scalable Structure for Growth
With a clear hierarchy of shareholders, directors, and officers, corporations are easy to scale and grow. They’re equipped to handle mergers, acquisitions, and even public trading if the business eventually gets there.
Sole proprietorships and partnerships are difficult to scale and often face hurdles in managing growth. When you start a corporation online, you welcome long-term expansion through avenues like raising capital via stock offerings.
Perpetual Business Entity Existence
Once you start a corporation online, it exists as a separate legal entity that continues to operate regardless of ownership changes. This makes it ideal for long-term ventures or companies looking to scale over generations.
Meanwhile, sole proprietorships and partnerships face challenges in succession planning. These businesses may dissolve or undergo significant disruptions if an owner or partner retires, passes away, or transfers ownership.
Experience the Inc Authority Advantage
Start a corporation online with Inc Authority’s expert assistance and expedited processing.
You get professional guidance, fast filing, and a free year of registered agent services. The only cost? Just the state filing fees—which may be tax-deductible!
Start a Corporation Online with Inc AuthorityC-Corp vs S-Corp: Which Is Better?
When deciding between a C-corp and an S-corps, it’s important to understand how these two corporation types compare in terms of ownership, taxation, and more.
Here are their features to help determine which legal entity best suits you.
Swipe horizontally to view the full table
| Feature | C-Corp | S-Corp |
|---|---|---|
| Ownership | Unlimited number of shareholders, including individuals, corporations, and foreign entities. | Limited to 100 shareholders, all of whom must be US citizens or residents. |
| Management | Requires a board of directors, officers, and adherence to formal governance rules. | A similar structure but has fewer state compliance formalities for small businesses. |
| Management Flexibility | Rigid, with strict formal governance structures, board meetings, and record-keeping. | More flexible, as S-corps can have a simpler board structure and make decisions more informally. |
| Stock Classes | Flexible in voting rights and dividends, can issue multiple classes of stock (common, preferred). | Equal voting and profit distribution rights; are restricted to one class of stock. |
| Liability Protection | Shareholders have limited liability, protecting personal assets from corporate debts. | Shareholders also have limited liability, ensuring personal assets are safeguarded. |
| Raising Capital | Unlimited ability to raise capital through stock sales, attractive to investors. | Significantly limited; cannot issue multiple stock classes, which affects investor interest. |
| Taxation | Double taxation: corporate income taxed; dividends taxed at the individual level. | Pass-through taxation: corporate income is taxed only at the individual level of shareholders. |
| Ideal For | Large businesses seeking rapid growth, significant outside investment, or eventual public trading. | Small businesses or startups that prioritize tax simplicity and limited ownership. |
Prepared to Start a Corporation Online?
Get expert guidance and streamlined processes with Inc Authority when you start a corporation online.
Whether it’s a C-corporation, S-corporation, or even a nonprofit corporation, it’s a quick, convenient, and hassle-free experience—from start to finish!
Start Your Corporation Online NowC-Corp vs LLC: Which Is Better?
A common dilemma for entrepreneurs looking to start a corporation online is whether to form a C-corp or an LLC. Each entity has distinct advantages and drawbacks.
Here’s a detailed comparison to help you decide which structure to choose.
Swipe horizontally to view the full table
| Feature | C-corp | LLC |
|---|---|---|
| Ownership | Unlimited shareholders, including individuals, corporations, and foreign investors. | Flexible ownership structure, no limit on the number of members (individuals or entities). |
| Formation Complexity | More complex, requiring articles of incorporation, bylaws, and strict filing requirements. | A simpler process with the articles of organization and an operating agreement. |
| Management | Requires a board of directors and corporate officers, and adherence to formal governance rules. | Managed by members or appointed managers, with more flexible (less formal) governance requirements. |
| Liability Protection | Shareholders have limited liability, protecting personal assets from corporate debts. | Members also have limited liability for business debts, similar to corporations. |
| Raising Capital | Can issue multiple classes of stock, including common and preferred; attractive to investors. | Can’t issue stock; raises capital through loans and member interests and contributions. |
| Taxation | Corporate income is taxed, and dividends are taxed at the individual level (double taxation). | Offers pass-through taxation by default, where business income is taxed at the member level. |
| Ideal For | Large businesses seeking to raise significant capital and grow rapidly, and those aiming to go public. | Small to medium-sized businesses looking for flexibility and simplicity in management. |
Ready to Start a Corporation Online?
Get professional assistance and comprehensive support with Inc Authority when you start a corporation online.
You’ll be guided through every step of the process, ensuring you select and form the right business entity while avoiding common pitfalls and maximizing advantages.
Start a Corporation Online TodayHow to Start a Corporation Online: A Step-By-Step Guide
1. Choose a Business Name
- Conduct a business name availability search to ensure your desired name is unique.
- Check domain name availability to secure consistent online branding for your corporation.
- Follow naming guidelines set by your state to avoid legal complications.
- Reserve and register your business name, and trademark it to protect your brand.
- Make sure your chosen name represents your business and is not misleading.
2. Decide Where to Incorporate
- Prefer states like Delaware and Nevada for their business-friendly laws.
- Analyze tax implications, including state corporate income tax rates and tax benefits.
- Consider compliance requirements and maintenance costs in different states.
- Factor in where your shareholders, directors, and customers are located.
- Choose your home state if most of your business activity will occur there.
3. Appoint a Registered Agent
- Designate an individual or company to accept your legal correspondence.
- Choose a registered agent with a physical address in your state of incorporation.
- Understand that the registered agent must be available during regular business hours.
- Decide between acting as your own agent or hiring a professional.
- Keep your agent’s contact info updated for timely delivery of legal documents.
4. File Articles of Incorporation
- Provide basic corporation details, including name, address, and purpose.
- Add information about your initial directors, including their names, addresses, and shares.
- Include your corporation’s registered agent details for state records.
- File the Articles of Incorporation with your chosen state’s business department.
- Pay the state filing fee (cost varies) and retain a copy of the approved document.
5. Draft Corporate Bylaws
- Outline your company’s purpose, structure, and operational rules in the corporate bylaws.
- Define the roles and responsibilities of directors, officers, and shareholders.
- Establish guidelines for holding meetings, voting, and decision-making.
- Include provisions for resolving disputes, transferring shares, or dissolving the corporation.
- Review with your legal counsel to ensure the bylaws align with state laws.
6. Hold the First Board Meeting
- Formally appoint initial directors and corporate officers with clearly defined roles.
- Issue initial stock to founders and early investors, and document ownership percentages.
- Approve and record corporate bylaws and initial strategic business decisions.
- Establish initial banking relationships and authorize financial signatories.
- Create official corporate records documenting the inaugural board meeting proceedings.
7. Apply for a DBA (Optional)
- Determine if your corporation will operate under a different name from its legal name.
- Check state requirements to see if a DBA is needed for your desired business name.
- Conduct a search to ensure your DBA (Doing Business As) name is available.
- File the appropriate paperwork with your state or county to register the DBA.
- Update your business records to reflect the new DBA name, and renew it periodically.
8. Obtain an EIN
- Get your unique nine-digit Employer Identification Number (EIN) or Tax ID on time.
- You need an EIN to file your taxes, hire employees, and open corporate bank accounts.
- Apply for your EIN for free through the IRS website or other filing services.
- Ensure accuracy in the EIN application process to avoid tax and legal complications.
- Keep your EIN documentation safe for future reference and financial transactions.
9. Set Up Business Finances
- Open a corporate bank account to separate personal and business finances.
- Set up robust accounting and bookkeeping systems to track income and expenses.
- Establish a budget for your corporation’s operations and growth.
- Apply for business credit and establish a credit profile for your corporation.
- Regularly review financial statements to monitor performance.
10. Obtain Licences and Permits
- Identify the specific local, state, and federal government licenses and permits you need.
- Research applicable zoning laws, health permits, or professional certifications.
- Budget for licensing fees and keep track of renewal processes and timelines.
- Get from local chambers of commerce or business development centers.
- Submit applications for any required licenses before starting up your business.
11. Get Appropriate Insurance
- Get essential insurance, like general liability and professional liability coverage.
- Consider industry-specific insurance needs based on your business risks.
- Obtain workers’ compensation insurance if you’re planning to hire employees.
- Compare quotes from multiple insurance providers to find the best coverage deals.
- Regularly update your insurance coverage as the business grows and changes.
12. Ensure Corporate Compliance
- Maintain good standing by filing all required reports on time with the state.
- Maintain detailed records, including meeting minutes and financial statements.
- Keep corporate bylaws updated to reflect current business operations and structure.
- Schedule and document regular board meetings as part of corporate governance.
- Consult with legal and financial professionals to ensure ongoing regulatory compliance.
Want to Start a Corporation Online the Easy Way?
Save time and streamline the process using a trusted professional service like Inc Authority ($0 + State Filing Fee).
With over 30 years of experience, 250k+ successful registrations, and 38k+ Trustpilot reviews, Inc Authority is a trusted company for online corporation formation.
Start Your Corporation for FreeWhy We Recommend Inc Authority to Start a Corporation Online
It can be daunting to start a corporation online, but Inc Authority makes the process seamless and efficient.
Here’s why Inc Authority should be your go-to choice for online corporation formation.
Free Corp Formation
Inc Authority charges nothing for starting a corporation online—you only pay the required state filing fees. This allows you to focus your resources on growing your business while saving on upfront formation costs.
Expert Guidance
It offers expert business guidance through services like compliance notifications and tax planning consultations. These help you navigate the complexities of running a corporation, ensuring legal compliance.
Expedited Processing
Inc Authority’s Fast Track Bundle offers expedited filing and expert guidance to launch your corporation faster. The streamlined process ensures you can start your business quickly and efficiently, minimizing bureaucratic delays.
Proven Track Record
With 250,000+ businesses launched and a 4.9-star TrustPilot rating, Inc Authority has a solid reputation. Its extensive experience, earned over decades of operation, makes it a trusted partner for starting a corporation.
Excellent Support
Inc Authority offers INC CARE customer support to assist you at any stage of the incorporation process. Its knowledgeable team ensures your journey to start a corporation online is smooth and hassle-free.
Inc Authority offers a straightforward and stress-free way to start a corporation online. Leverage its professional support and comprehensive business tools today.
Start a Corporation Online with Inc AuthorityWhat Customers Say About Inc Authority
“Rita was very thorough and informative. Everyone at your company has been a complete joy to work with. I’m learning a lot from you guys and greatly appreciate it. Thanks to all of you.”
— Ryan Zahradka *****
“Jonathan was such a great help. He helped me decide on a plan of attack to get my business where it needs to be legally. I look forward to working with him more in the near future. Thanks!”
— Donna Berry *****
How Much Does it Cost to Start a Corporation Online with Inc Authority
These are the various plans Inc Authority offers to help you start a corporation online.
Free Plan
$0 +State fee
Includes:
- Business name check
- Free registered agent service (1 yr)
- Digital document storage and delivery
- Tax planning consultation
- Preparation and filing of documents
- Live, US-based INC CARE support
- Business credit and funding analysis
Starter Business Bundle
Custom pricing
Includes:
- Everything in the Free Plan
- Complete corporate bylaws
- Initial meeting minutes
- Ownership or stock certificates
- EIN/federal tax ID filing
- Annual compliance notifications
- Web domain and 5 email addresses
Fast Track Bundle
Custom pricing
Includes:
- Everything in Starter Bundle
- INC Success Advisor Package
- Private banking specialist
- Personalized business advice
- Expedited filing
Additional Services
Price varies by service
Includes:
- Tax Preparation: Comprehensive business and personal tax filing services, handled by competent and experienced accountants.
- Trademark Registration: Safeguard your brand with a federal trademark, helping customers easily recognize your business.
- Estate Planning: Plan for your financial future with a Revocable Living Trust that provides long-term security for your family.
- Business Credit Services: Build an A+ credit rating in just 90 days, with access to business loans, credit lines, and working capital.
- Business Funding: Pre-qualify within minutes and access a vast network of lending options, including unsecured low-interest loans.
- Business Plans: Work with a dedicated advisor to create a comprehensive business plan, including projections and analysis.
- Website & Marketing Services: Get expert help from custom website designers and marketing pros to build an online presence.
Choose Inc Authority to Start a Corporation Online
Inc Authority is a top choice for starting a corporation online. With 24-hour processing and 7-day US-based support, it offers fast, reliable service.
- Flexible and convenient plans starting at $0
- Option to pay for the services you need
FAQ
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1. What are the steps to start a corporation online?
Here are the essential steps you need to follow to start a corporation online:
- Choose a Corporation Type and Name: Decide between a C-Corp or S-Corp based on your business goals. Select a unique name that follows state naming conventions and reflects your brand identity.
- Select the State for Incorporation: Consider forming your corporation in your home state or choose business-friendly states like Delaware or Nevada, which offer potential tax advantages and fewer regulations.
- Appoint a Registered Agent: A registered agent is required to receive tax and official documents on behalf of your corporation. Choose a reliable, professional agent like Inc Authority to ensure compliance.
- File Articles of Incorporation: Complete and submit the Articles of Incorporation with your state's Secretary of State office. Inc Authority can handle this crucial step with its free formation service.
- Hold Initial Board Meeting: Conduct your first board meeting to appoint directors and officers, issue initial stock, and approve corporate bylaws. Document all decisions in your corporate minutes.
- Register a DBA (If Needed): If you plan to operate under a different trade name, apply for a “Doing Business As” (DBA) to legally use an alternate business name. It gives you flexibility in branding while maintaining your corporate identity.
- Obtain Your EIN: Apply for a federal Employer Identification Number through the IRS. This tax ID is essential when you start a corporation online as you need it to open bank accounts, hire employees, and file your taxes.
- Set Up Business Finances: Open a dedicated corporate bank account and establish your accounting systems. Keep corporate finances strictly separate from private funds for personal liability protection.
- Secure Required Permits and Licenses: Research and obtain all necessary federal, state, and local business licenses and permits for your industry and location. Compliance requirements vary by state and business type.
- Get Business Insurance: Protect your corporation with proper insurance coverage, including general liability, property, and professional liability insurance, where applicable.
- Maintain Corporate Compliance: Stay compliant with ongoing reporting requirements, including annual reports and tax filings, and maintain corporate records. Inc Authority’s comprehensive support services can help you out.
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2. Can I open a corporation by myself?
Yes, you can start a corporation on your own by filing the necessary paperwork with your state. Many entrepreneurs choose to start a corporation online because it allows them to manage the process independently.
Still, the process can be time-consuming and complex, involving legal forms, creating corporate bylaws, and other requirements.
Using a service provider like Inc Authority simplifies matters. Its team will guide you step-by-step, ensuring all legal obligations are met without the stress of doing it yourself.
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3. Should I start an LLC or corporation?
Choosing between a limited liability company (LLC) and a corporation depends on your business goals, growth plans, and desired tax structure. LLCs are ideal for small businesses seeking flexibility, simpler management, and pass-through taxation.
Corporations, on the other hand, are ideal if you plan to seek external investment, want to issue stock, or need a more formal business structure. Start a corporation online if you:
- Plan to go public eventually
- Want to attract venture capital
- Need to issue different classes of stock
- Prefer a more structured management system
Both structures offer liability protection, but corporations provide unique advantages like issuing stock and perpetual existence. If you’re unsure which is right for you, Inc Authority’s support team can answer your questions via email or phone.
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4. How much does it cost to start a corporation?
When you start a corporation online, costs vary by state and chosen service provider. State filing fees typically range from $50 to $500. While formation services like Inc Authority offer free corporation formation packages, you’ll need to pay mandatory state fees.
Additional costs might include:
- EIN registration
- Business licenses
- Registered agent services
- Drafting corporate bylaws
- Annual report fees
Consider using Inc Authority’s free formation service to start a corporation online with minimal initial costs, while still getting professional support. It also offers free registered agent services for a year.
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5. Can I form an S-Corp without first forming an LLC?
Yes, you can elect S-corp status without forming an LLC. S-corp is a tax classification, not a business structure, so it’s available for corporations and LLCs alike.
First, start a corporation online, then file Form 2553 with the IRS to elect S Corporation status for your C-corp. This election must be made within 75 days of incorporation or the start of the tax year.
To file as an S-corp, you need to meet IRS eligibility requirements. These include limiting the number of shareholders to 100 and ensuring all shareholders are US citizens or residents.
Ready to Start a Corporation Online?
Inc Authority has helped over 250k businesses get started, making it the best choice to help you start a corporation online quickly and efficiently. With its free formation package, you only pay the state filing fee.
Rated 4.9 stars on Trustpilot, Inc Authority is a true beacon of customer satisfaction.
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