Podcast – Ep 1 – Incorporation

This the beginning of my podcast.  I’m going to walk through topics that should matter to every entrepreneur or startup founder.  I’ve just begun my own startup in the SEO and blog industries.  I’m really excited and scared at the same time because I have no idea what this is going to lead to, but I figured I could provide an interesting viewpoint through the process.
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My podcast is called the “Non-Technical Startup Founder Podcast.”
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This first podcast is a walk-through for any would-be entrepreneur into the first steps of starting a business.  Incorporating is an important step in starting a company that most people make haphazardly without understanding the potential benefits and realistic costs.
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Why are you incorporating?
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  • Do you have significant profits or net income?
  • Do you have a liability risk?
  • Are you expecting funding?
  • Is there any real immediate tangible benefit?
  • Do you feel stupid yet?

Which legal entity will you use?

  • S Corporation vs. Limited Liability Company
  • C Corporations vs. Limited Liability Company

Where should you incorporate?

  • Delaware
  • Nevada
  • South Dakota

How do you incorporate?

  • Do you need an attorney or an accountant?
  • Where to find stock or standard legal documents?
  • State government websites?
  • Check and confirm state incorporation fees?
  • Check and confirm incorporation maintenance fees?

Final words.

  • Be aware of stealth taxes, franchise taxes and etc.
  • Understand the annual and quarterly corporate filings
  • Respect the legal formalities

Best Practices

Trust but verify – Winston Churchill
Do it yourself, but check with a professional!

One Response to “Podcast – Ep 1 – Incorporation”

  1. Matt July 26, 2011 at 9:26 pm #

    I really enjoyed this podcast. I am the single founder of a startup in California who has yet to launch. In order to launch, I need to get a merchant account in order to take payments online. Most merchant accounts require you have a business checking account, for which you need to be an actual business. I’d prefer not to go the sole proprietorship route and use my personal checking account and SSN in order not to “pierce the corporate veil”. However, I want to hold off on forming an entity for as long as possible for the reasons you talked about in the podcast. If I had a co-founder I could form a simple general partnership, but that isn’t the case. What are you recommendations in this situation where I want to hold off on forming an entity yet still be able to obtain a merchant account that has segregation from my personal finances?

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