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An incorporation service assists businesses, particularly
small to mid-sized businesses and attorneys, form corporations
and Limited Liability Corporations (LLC) quickly and
affordably. With more small start-ups than ever before, there is
a greater need for quick and inexpensive help in forming a
corporation.
This kind of service is one of the
easiest businesses to start on the Internet, requiring little
time for maintenance of the web site, minimal research as well
as cash outlay. For as little as $1,000 - $5,000, depending on
the complexity of your web site, you can have your online
incorporation service up and running!
Tools
of the Trade
The main tool for this kind of
operation are copies of Certificate of Incorporation forms for
every state that you want to cover – and competence in filling
up forms properly! A
good working knowledge of incorporation law is essential to
succeed in this business. Contact local government information
centers in different states, and read books or official leaflets
you can find on the subject.
You need to familiarize yourself
with various legal structures, as the filing documents, process
and fees differ for different kinds of corporations and LLC’s.
Learn the fee structure and process for each state (you’d be
surprised to learn that each state has different rules!), and
make sure to post these fees on your web site. You usually have
to pay two or three separate fees to the state, and usually
order a seal and stock ledger from a stationery store.
To avoid return of unprocessed
forms due to erroneous entry, it is best that you contact the
information services of each of the states that you want to
cover in your business and clarify the rules. For example, some
states may require that you put a comma between the business
name and the abbreviation of “inc.” Once you know how to
fill up the forms correctly, the entire process can take you
only a few minutes!
Your
Web Site
While you do not need special
qualifications to start this business, you need to be able to
convey your competence, trustworthiness and knowledge in your
web site. The key to success is to provide fast and friendly
personal service to your clients. Your main selling point,
however, is your low price -- you are offering an alternative to
businesses that wants to incorporate but wants to avoid the high
overhead costs of hiring a lawyer.
The low price, plus the convenience of setting up a
corporation anywhere in the United States from their computer
will make this online service hard to pass up for potential
clients.
The basic features of your site
should include a description of the services that you offer
outlining what exactly you can do for the potential client and
the fees involved. It
is important at the onset to clarify client expectations. Put a
form on your site to get all the required information you need
from your client -- proposed corporation’s name, contact
person, address, preferred state of incorporation, principal
activity of the company, among others. A description of your own
company and contact address or phone number are also essential.
Advertising and promotions will be
your biggest out-of-pocket expense. Inexpensive ways of getting
the word out about your service include establishing links to
entrepreneur- and business-related sites.
Another effective means of creating awareness for your
business is through sending out of announcements and press
releases about your service to publications, whether online or
traditional media, catering to business start-ups.
Potential
Revenues
Revenue base will come from your
service fees, which could range from $50-$100 per filing.
Additional revenue sources include helping your clients secure
an Employment Identification Number, selling complete
incorporation kits, and consultation services. Corporate
packages normally include easy-to-fill out forms such as
Articles of Incorporation, any minutes from board of director
meetings, stock certificated, etc. You can also branch out and
offer similar services, such as trademark consultation and
registration.
Your clients will mainly be U.S.
businesses that want to incorporate. However, you can also
expand your operations to foreign clients who wish to set-up a
U.S. corporation. Your
package for international clients may include setting-up a
corporate bank account, and an address and contact numbers in
the United States.
Sites
Offering Incorporation Service
Some of the incorporation services
available on the Web include
Check them out and compare their
web sites to help you determine if this business is for you, and
what you can offer that will make your site stand out from the
pack.
Tips
on How to Beat Your Competitors
You need to understand that the
essential role of an incorporation business is to get a company
started on the road to greater growth or expansion potential.
Based on this premise, you can position yourself as the
“online legal adviser” of companies, offering them with
information, tools and resources to help draw out the full
potentials of their present legal structure. This is a tough
job, but who says being the best is easy?
One approach could be to make your
site into a one-stop shop for all incorporation and legal
requirements of a business start-up. In addition to a
description of your basic services and fees, you could increase
your site’s value by adding more content such as frequently
asked questions, articles comparing the various legal
structures, importance of incorporating a business, glossary of
terms, law amendments and policy changes pertaining to each
legal structure. Many people who consider starting a business
simply have no idea which form of business is more advantageous
for them. By providing these budding entrepreneurs with guidance
and advice not only on how but also why businesses should
incorporate, it will be easier to convert your visitors to
paying clients. You can also add other legal forms available for
downloads, including tax forms.
A little diligence and research
could go a long, long way on the Internet!
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