How to Set up Your Own Corporation

Starting your new corporation is not complicated. Basically you have to choose your company name, decide who will be director, and who will be the officers (president, treasurer and secretary). You also have to decide how many shares you want to issue. What it means is that company is authorized to issue certain number of shares, but it is not very important unless you are planning to go public and need millions of shares. Some states base their fee on number of shares issued. For example you can have 75 million of shares in Nevada and still pay the lowest filing fee of $75. In Delaware you would pay tens of thousands in legal fees. Some States allow only one person to hold all functions. For example Nevada is like that. You can be director, president, treasurer and secretary.

"LLC" and "Corporation" have many of the same characteristics. The most important characteristic they share is that they both offer limited liability protection to its owners. Typically, shareholders are not liable for the debts and obligations of the corporation; thus, creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. With an LLC, the members are not personally liable for the debts and obligations of the corporation. For more information on difference between INC and LLC, click on the link. Nevada Corporation offers incorporation in all 50 States. If you want to see difference in fees check here.