Featured Coaching Training: How to Get Incorporated to Protect My Business?
If you have a small business, you may find yourself asking if you need to get incorporated. Watch this series taught by Wes Carter who is an attorney / member of the legal team that represents TD Jakes, Joel Osteen, and others to find out.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Lesson Nugget: As a small business owner, it is more beneficial for you to incorporate in your own state.
ByLaws/Operating Agreement: Documents outlining the business's organization and day-to-day operations.
Lesson Nugget: The company bylaws are the rules by which the company is run.
Lesson Nugget: Attorneys are there to focus on the legal side so that you can focus more on your business.
Lesson Nugget: Depending on your state or location, hiring an attorney to help you file your articles will cost around $1,000 to $1,500.
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-What about, I love that we go back to snow cones. Now let me do this. I've heard people who have said, you got to start a company in LasVegas, bro. Bro, you go to Las Vegas, that's where it's it. Think about it. It's Las Vegas and the laws are friendly and they're in Las Vegas and the laws are friendly. That's kind of what I hear a lot. Why would I want to file in Las Vegas? Or Nevada?
-It's similar to Delaware in that it's mostly tax issues and asset issues that are for larger corporations. A lot times you'll have these giant corporations that have a parent company in one of those states and lot of little other corporation arms in other states. But for the vast majority of small business owners, it's much more common and beneficial just to incorporate we're you're going to do business.
-So kind of the step one, two, three, as I'm kind of deciphering this and trying to break it down to just that third grade level that I operate at there, is one, I've got to find an attorney.
-And so I'm looking for references and I'm looking for a company, an attorney that I get along with. I'm looking for an attorney that's reputable.
-And the second is, I need to file these articles-- they'll do it. The attorney will do it?
-And step three, I just what, set it and forget it after I pay the guy?
-No. After you pay him, what happens is you're going to fill out probably a little information sheet. They're going to get the incorporators, all this technical jargon that the SBA was kind enough to list out here.
-So you get all that on it. You know, he needs that-- he or she needs that information to file your articles. And then the second step or the second document is probably the most important document which is your bylaws for a corporation or your operating agreement for an LLC.
-Does your attorney help with the bylaws?
-Yes. That's where the attorney is probably most valuable.
-What are bylaws? Just for the folks at home like me who don't know what that is.
-Bylaws are the rules of how your business is going to be run. So how people get paid, who gets paid, how are we going to get taxed, how, if we fight with each other, what are the rules of the match? Those are your bylaws.
-OK, your bylaws. So these are all things we need to do if we want to get incorporated. Now the one thing I want to encourage you if you're watching this-- Wes, you had said, you know, it might take in some states 48 hours or 72 hours. I mean literally, I talked to a lady on Thrive a while back. I talked to her. She's a Thriver, and she had said, I've always wanted to start this company. You know, I've always wanted to be an artist and go out on my own and make art. I sell art a little bit from home. I'm thinking about quitting my job as a teacher to become an artist. And I thought, well that's great. And she says, I just have been fearing how to get incorporated. And in her mind it's this great, big thing.
-But really we're kind of like a call away, or some calls away from some attorneys and--
-Right. I mean, most of the they can email you the information. You don't even have to get in your car and drive to the attorney's office.
-We can do a lot of it online these days. And literally, I mean, for example, in my office, to get you going it's a one page information sheet you fill out. We've done this enough times. We know exactly what information we need. And attorneys are trying to make you take up as little of your time possible doing all legal stuff so that you can focus on your business.
-How much should this cost me total?
-You know, it ranges in where you're at. You know, different parts of country have higher prices. But somewhere between $1,000 and $1,500, somewhere in there.
-OK. Great. This is awesome stuff. And as always, we want encourage you, if you're watching the Thrive legal episodes, we are not telling you to go cowboy, or to go rouge and to go without an attorney. We encourage you to find an attorney. What we're trying to do is kind of educate you, he can educate me on specifically some of these legal terms so we have a better grasp of what we're doing, so we feel empowered to start a successful business and not afraid of the legal process.
-Not to do it yourself, but to know what questions to ask your attorney.
-Absolutely. Absolutely. Wes, I appreciate your time more than you know. And when we finish today's episode I will sue you for the second time.
-Well, thank you.
Are you looking for more online trainings? Check out sales, marketing, branind, or time management tips from mentors like Clay Clark