Business formation requires many decisions. A central question in determining how to start a business is whether to structure it as a sole proprietorship, some type of partnership, a limited liability company (LLC), or a corporation.
Once you decide to organize your business as a corporation, you need to officially register your corporation with the appropriate agency. At one time, this involved obtaining the necessary paper forms, filling them out, and either mailing or delivering them to the proper state agency. Fortunately, you can now incorporate online.
Online incorporation is relatively easy and quick.
Where to register your corporation
All states, as well as the District of Columbia, have a government agency that controls the formation and registration of corporations and other business entities. These agencies can be accessed through their websites, which provide detailed information about forming a corporation online, including the necessary forms. They will also tell you what fees are charged, and how they can be paid. The incorporation fees vary by state.
In 38 states, corporations are registered with the Department of State or the Secretary of State. In Alaska, with the Department of Commerce, Community, and Economic Development. In Arizona and Virginia, with the Corporation Commission. In the District of Columbia, with the Office of Tax and Revenue. In Illinois, with the Department of Commerce and Economic Opportunity. In Maryland and Utah, with the Department of Commerce. Hawaii, Indiana, Kentucky, Michigan, New Jersey, and Wisconsin have special websites dedicated to forming corporations.
The website for your particular state can be found by doing a search for the state's agency. For example: "Texas corporation registration." Another source is the website for the United States Small Business Administration, which allows you to search for the website for any state.
Some states have special rules and forms for certain types of businesses, such as banks and insurance companies. In some states, you will also need to register with a state taxing authority.
Corporate name check and reservation
Before filing an application to register your corporation, you need to be sure that the name you would like to use has not already been registered. All of the state websites have a feature that allows you to search whether the name you desire has previously been registered. Generally, the identical name, or a name that's so similar that it's likely to be confused with the name, will not be allowed.
If the name is available, you will be able to reserve the name while your application is being processed. Reservation of a name may require payment of a separate fee, so you may wish to just file your application for registration instead. As a practical matter, it's unlikely that someone else will reserve or register the same name, or a similar name, before your application is processed—but it is possible.
Corporate registration
The application form to register your corporation can be completed and filed online. The particular requirements and forms vary from state to state. Reviewing the forms and information on your state's website will tell you what information will be needed to complete the online filing.
Generally, the initial filing document is called the Articles of Incorporation, which typically includes the following information:
- The name of the corporation.
- The address of the corporation's principal place of business.
- The initial number of shares of stock to be issued and the par value per share.
- The name of the incorporator or organizer. This is simply the name of the person filing the application. This may, or may not, be one of the shareholders or officers of the corporation. It may be the name of the attorney, or any other person, filing the application.
- The name and address of the registered agent. This is the person, or company, designated to receive official documents on behalf of the corporation. If the corporation is sued, the court papers will be served on the registered agent, who may, or may not, be a shareholder or officer of the corporation.
Depending upon the state, other information may be required, such as:
- The purpose of the corporation. To allow the greatest freedom, it's common to state the purpose as "any purpose lawful for a corporation."
- The duration of the corporation. Most corporations will list their duration as "perpetual." However, sometimes a finite period is stated. For example, if a corporation is created for the purpose of organizing a concert on a certain date, it may be stated that the corporation's duration ends on some date after the concert.
- The names of one or more directors.
- A copy of the corporation's by-laws.
Once all of the required information is filled in, the application form can be submitted online. The website should indicate the period of time that is typically required for registration approval.
Online incorporation services
An alternative to registering directly with the agency is to use the services of a commercial online service. Such a service will have you fill out an online questionnaire with the details about your company, and will then prepare and file the registration forms for you. It may also perform other services, such as checking the name availability, preparing by-laws, and obtaining a federal tax identification number.
Incorporating online is the easiest and fastest way to accomplish this necessary task.
Online business incorporation FAQs
How does incorporating online work?
You can start a corporation by filling out forms on your state's website instead of mailing paper documents. Most states now let you file your articles of incorporation through their official websites. You'll need basic information like your business name, address, and who will receive legal mail for your company. The whole process usually takes just a few days instead of weeks, and you can track your application online to see when it's approved.
What information do I need to incorporate my business online?
You need to provide your business name, your company’s main address, and your resident agent’s information. You'll also need to decide how many shares your company can issue and choose someone to be the incorporator (the person filing the paperwork). Some states ask for additional details like what your business does or how long it will exist, and you’ll need to pay a fee when submitting.
Should I use an online service like LegalZoom or file directly with my state?
Filing directly with your state costs less money but requires more work from you. State filing fees typically range from $50 to $300, while online services charge extra fees on top of state costs. However, if you’re not confident or have a complex situation, services like LegalZoom handle the paperwork for you and can provide additional adjacent services. If you're confident about doing paperwork and want to save money, go directly through your state's website.
What is a registered agent and do I need one?
A registered agent is a person or company that receives important legal documents for your business during regular business hours. Every corporation must have one, and they need a physical address (not a P.O. box) in the state where you're incorporating. In many states you can be your own registered agent, but many people use professional registered agent services because they provide privacy and flexibility.
How long does online incorporation take?
Online incorporation typically takes 1–5 business days for standard processing, but some are approved immediately upon submission. Many states offer expedited processing for an extra fee if you need your corporation approved faster than standard. The exact timing depends on your state and how busy their office is when you file.
What happens after my corporation is approved online?
You'll need to complete several important steps to make your corporation fully operational. First, get an employer identification number (EIN) from the IRS for taxes and banking. Then create corporate bylaws, hold your first board meeting, and issue stock certificates to owners. You may also need business licenses depending on the nature of your business.
Can I incorporate online if I live in a different state than where I want my business?
Yes, you can incorporate in any state regardless of where you live, and online filing makes this easier. Many businesses choose to incorporate in states like Delaware or Nevada because of their business-friendly laws, even if they operate elsewhere. However, you'll still need a registered agent with a physical address in the state where you incorporate. Also, if you plan to do business in your home state, you may also need to register as a "foreign corporation" there, which means additional paperwork and fees.