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Finance: How Do You Become Incorporated? 48 Views
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Description:
How do you become incorporated? Go to Legal Zoom. Pay $150, file with the state of Delaware or whoever each year. Pay another $150. Most file as LLCs when they are small, so the costs are low.
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- Terms and Concepts / Incorporation
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Transcript
- 00:00
Find it a la shmoop how do you become incorporated
- 00:06
Well the first question you want to figure out is
- 00:08
why do you want to become incorporated in the first
- 00:11
place Well here's the sitch if you have an ice
- 00:13
cream shop that you own personally you've got twenty grand
Full Transcript
- 00:17
in a bank account in eat yellow snow dot com
- 00:20
it's the name of your ice cream shop you haven't
- 00:23
been successful yet you personally own your own home You
- 00:26
have a fully paid for car and a really nice
- 00:29
xbox set up some stooge slips on a banana peel
- 00:33
in your store and would boob sues you for negligent
- 00:37
banana peel Pick up the student has great lawyer draws
- 00:41
an angry jury and you lose big you are one
- 00:44
hundred grand to cover the stooges pain and suffering well
- 00:48
because you didn't watch this video and listen to shmoop
- 00:51
you not only lose the twenty grand in your company's
- 00:53
bank account but you have to sell your house to
- 00:56
pay off the lawsuit Well if you're lucky you'll keep
- 00:59
your xbox It all depends on whether you net after
- 01:02
your mortgage from the house sale enough money to pay
- 01:05
Off the stooge in his lawyer Ah if only you
- 01:08
had incorporated Well if you had all you would've owed
- 01:12
was the twenty grand from your company bank account You
- 01:15
could have closed up shop and gone into surfboard waxing
- 01:18
or you know whatever but you'd still have your home
- 01:21
with the nice xbox set up So how do you
- 01:24
make this magic happen Well the process used to cost
- 01:27
thousands of dollars in require a real lawyer Today Most
- 01:31
people just go to legalzoom dot com fill out a
- 01:33
few forms about three hundred bucks and voila they're done
- 01:37
They're officially incorporated as an llc limited liability corporation Well
- 01:43
most people officially registered their companies in delaware because that
- 01:46
state offers extremely cheap taxes easy filing systems and it's
- 01:51
set up to accommodate corporate filings at scale So you
- 01:55
as the new filer get the benefit of walmart pricing
- 01:58
for the process And along with that wal mart pricing
- 02:01
comes the freedom to wear sweat pants in public Yeah
- 02:05
you just keep doing you and the limit your liability
- 02:08
It's a smart thing to do L l c three
- 02:11
letters
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