Best Corporation Services of 2023
The best corporation filing services allow you to file all corporation paperwork and register your business. Corporation services support you through the process and can help make sure all your paperwork is accurate and being sent to the right place.
What is a corporation?
There are two types of corporations: C-Corporation (C Corp) and an S-Corporation (S Corp). We’ll discuss each of these in a minute, but first let’s outline the characteristics of corporations in general. Forming a corporation shields your personal assets from business liabilities as there is a complete separation between the two finances. It is allowable in all 50 states. There are international corporations as well with their own set of rules.
There are several types of corporate entities, but there are two that focus on profit. C-Corp or an S-Corp are the most common choices when setting up your business. It is important to do your homework or consult with an attorney or tax consultant in order to choose the best business formation structure for you.
Best corporation services in 2023
Online business formation service providers offer a fast and cost-effective solution to forming a business. These filing services and industry experts offer all the services you would need to start and run your business, such as preparation and filing of LLCs and corporations, business licenses, legal documents, compliance, and registered agent services, all in one place for an affordable price.
With online business formation service providers, forming your business is a quick, straightforward, and smooth process. All you need to do to get started is select one of the top business formation services above which will take you to their website. Then pick the business entity you are interested in, whether it be an LLC, s-corporation, or c-corporation, and enter the state you wish to register your business in. You will then be prompted to enter your desired business name, select the type of business package you want to proceed with and you’re all set.
BEST FOR: Best overall corporation filing service
Pros & Cons
You can register your corporation with SwyftFIling in less than 10 minutes. The standard package includes everything you need to launch your business including: Verify Company Name Availability, Preparation of Articles of Organization, Document Filing with Secretary of State, Online Access to Your Incorporation Documents, Lifetime Customer Support (Phone & Email), Free 30 Minute Business Tax Consultation, ComplianceGuard™ Company Alerts, Free Domain Name, Obtain Federal, Custom LLC Operating Agreement, Custom LLC Banking Resolution and more.
BEST FOR: Affordable corporation filing offer
Pros & Cons
You can register your corporation using IncFile filing service for free (+State fees). The free package will not cover all the essentials for your business, but it includes; Preparing & Filing of the Articles of Organization, Unlimited Name Searches and FREE Registered Agent Service for a year.
BEST FOR: Professional registered agent service
Pros & Cons
Northwest Registered Agent offers the option to cover your state fee cost when incorporating and allowing you to pay it over time. The total cost of incorporation is more expensive but the option to make monthly payments thowards incorporation and state fees cost might be attractive to some new business owners.
BEST FOR: Simple incorporation and legal services for all
Pros & Cons
You can register your corporation or LLC with RocketLawyer for free if you purchase their subscription. I really like the fact that RocketLawyer can support my business with many simple online legal services and contract templates including employment contracts, trademarks and many more legal services. They help simplify a lot of the legal services which translate into significant savings. If you are able to manage the modification required to some standard contracts and agreements and can just consult with a lawyer on final drafts we highly recommend considering their service.
Corporations are owned by a group on individuals who work together to generate a profit. Each owner controls a percentage of the corporation based on the number of shares they own. If you intend on growing and adding outside investors, you need to form a corporation. There is great deal of paperwork required to incorporate, but the advantages as far as taxes, protection and growth opportunities may be worth it.
We’ve mentioned some of the reasons to incorporate already, but let’s recap. All of the entities above shield you from levels of personal liability to a varying degree. LLC offers different levels of protection depending on whether you form as a partnership or corporation. Corporations offer a very high level of protection.
Corporations offer a perpetual existence and transfer of ownership. Many businesses are passed down to family members. If one of the owners dies, the corporation lives on.
Corporations have a certain level of prestige and credibility. Your customers might trust you more with an Inc or LLC after your name. Banks might more easily lend money according to your business structure as well. In addition, corporations have a clearer management structure and larger companies are obligated to report actions to a Board of Directors or shareholders which holds them more accountable for their decisions.
C-Corporation is great for businesses that sell products, have a storefront or have employees. If you ever want to go public in the future, this is the entity you should choose in order to have unlimited shareholders. Tax implications are key in choosing this entity. Businesses must pay a corporate income tax, and dividends are distributed at the individual level. Owners pay personal income tax on profits and healthcare premiums for your employees can be written off.
S-Corporations are generally designed for smaller business entities. It works very similar to an LLC in protecting your personal assets, but you are able to pay yourself a salary from the company. Owners pay personal income tax on the profits and business income and loss is passed to the owners on tax returns.
There can be no more than 100 shareholders so the entity will stay on the smaller side and have different management structure than a C-Corporation. Shareholders must also be US citizens or resident aliens.