Monday, February 16, 2009

Online Incorporation Services - 5 Tips to Finding a Reputable Proper Incorporation Service

If you are starting a new business, you are likely looking for an online incorporation service to form a corporation or limited liability company for your business. Given the risk of liability in today's business world, having a limited liability entity for your business vehicle is a must.

As Internet use has become so widely accepted for commerce, online incorporation services have become the most efficient way to acquire these services. However, if you do any kind of research in this area, you will find hundreds of companies offering this. How do you know which one to choose?

This article provides 5 tips that should narrow all the options down and make your decision easier.

Tip #1: Teaser Rates

As with any purchase, you must first look at the fee being charged for incorporating a business or organizing an LLC. The one thing that many of these companies like to do is tease you with a very low introductory rate.

However, make sure you look at the details because in many cases, there will be additional administrative fees, processing costs, and sometimes unacceptable shipping charges added to the service.

Also, with most of the entry level pricing packages, the turnaround times to complete the service is way too long. Believe it or not, some require 6 to 8 weeks which is just not acceptable for most business owners as you want to start your business sooner.

Now, they will not advertise their turnaround times and so what they hope is you will buy it and then later upgrade by having to pay more for a faster processing time.

Tip #2: Timing for Completion of an Incorporation

Timing was mentioned in Tip #1, but the best way to make this decision most efficient is to first determine how soon you need your incorporation or LLC formation. Then, when you research an incorporation service, only look at the packages they offer which can meet that timing.

This will help you to compare apples to apples packages when shopping .

Tip #3: Charging More for the Filing Fee

The incorporation services company usually quote a service fee and then they collect the filing fee that will go to the state as part of your filing. This fee should be the same regardless of which service you use as every state has the same filing fee schedule regardless of who submits a filing.

One negative aspect of the incorporation services market is the tricks they use to get your business. Some will offer an extremely low price but then mark up the state filing fee claiming this is what goes to the state. This is a deceptive practice and you should stay away from any company that does this. If you cannot trust them to give you honest information, you should not trust them with your money and more importantly the incorporating of a business you need for your liability protection.

Tip #4: Guarantees/Credibility in Incorporations is Important

The online incorporation services business does involve making sure that your document preparation and filing meets the specific rules and requirements of a particular state. Each state has its own set of laws and regulations. And, these can change each year as lawmakers and state agencies amend them. Accordingly, it is essential that your chosen incorporation service be a reputable company who has experience in this area of expertise. When doing your research look on the websites for evidence that the business knows what it is talking about. You will hopefully find some helpful articles or reports by the business to help you in making legal entity decisions.

One way to separate the experienced businesses from the rest is to insist on a compliance guarantee. Every reputable online incorporation service should offer a guarantee that their document preparation and filing will be in compliance with state requirements.

Tip #5: Customer Service

Incorporation services is a growing market because more people are starting businesses and with lawsuits becoming such an epidemic it would be crazy not to incorporate a business or organize an LLC for protection.

This has brought in many purported businesses that think they can effectively provide this service without much experience or customer service. This is an important step to starting a business so make sure that the online incorporation service company you choose has a phone number where you can reach customer service representatives to answer your questions either before or after you buy.

Don't Risk the Liability of an improperly formed legal entity for your business by using inexperienced online incorporation services. For detailed reviews, user comments and current promotions offered by the leading online incorporation services, visit:

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