Knowing what you need to do to becoming incorporated is your best strategy. Leaving the process to the professionals leaves you at risk.
1. Get as much information on your own as you can. Do the research yourself it will payoff in the long run, as this will help you to be able to ask the right questions and potentially mitigate any misunderstandings and lessen your cost. Check with your local chamber of commerce, or county clerk, they can point you in the direction of resources to guide you to the establishment of your corporation. Most local public libraries will have books on establishing a corporation in your state.
2. Of course ask questions. Do not be afraid to ask other business owners how they established their corporations. What did they learn throughout the process? What should you be aware of through the process? Understand that if you are an established business wanting to become a corporation your questions will be vastly different from those questions for a new startup corporation.
3. Don't just rely on your attorney or accountant to handle it all for you. It can be very expensive to leave the whole process to the professionals. While it is in your best interest to get professional advise. It may not be in your best interest to let the professionals handle the process both from a time and money aspect. Rest assured that you will be charged for their work and if you are in a rush to get this done you may want to stay "on top" of the process yourself.
4. Understand that a corporation is an entity, a living breathing being, if you will, in the eyes of the government. This entity status will require regulatory filings, adherence to laws specific to corporations, and penalties for non-compliance. New laws are being enacted all the time that affect corporations. Sarbanes-Oxley is an example of new regulations for corporations that require additional documentation for auditing purposes.
5. In this day and age of corporate scandals, understand that you do not want to become a corporation haphazardly. Become as informed as you can about what it means to become a corporation. Understand the legal and regulatory expectations of a corporation. Government regulatory agencies want you to be "in the know" and will assist you, but you must take the initiative to get informed and stay informed.
It may be quite obvious from the above listed tips that getting yourself educated is a key component of understanding what it means to becoming a corporation. Ignorance of the laws, rules and regulations will not excuse you from any fines and or penalties for failure to comply. Using your professionals as an excuse also will not excuse you from penalties and or fines. Knowing and understanding is in yours and your corporation's best interest.
