Finance: How Do You Become Incorporated?

How do you become incorporated? Go to Legal Zoom. Pay $150, file with the state of Delaware or whoever each year. Pay another $150. Most file as LLCs when they are small, so the costs are low.

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Transcript

00:17

in a bank account in eat yellow snow dot com

00:20

it's the name of your ice cream shop you haven't

00:23

been successful yet you personally own your own home You

00:26

have a fully paid for car and a really nice

00:29

xbox set up some stooge slips on a banana peel

00:33

in your store and would boob sues you for negligent

00:37

banana peel Pick up the student has great lawyer draws

00:41

an angry jury and you lose big you are one

00:44

hundred grand to cover the stooges pain and suffering well

00:48

because you didn't watch this video and listen to shmoop

00:51

you not only lose the twenty grand in your company's

00:53

bank account but you have to sell your house to

00:56

pay off the lawsuit Well if you're lucky you'll keep

00:59

your xbox It all depends on whether you net after

01:02

your mortgage from the house sale enough money to pay

01:05

Off the stooge in his lawyer Ah if only you

01:08

had incorporated Well if you had all you would've owed

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was the twenty grand from your company bank account You

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could have closed up shop and gone into surfboard waxing

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or you know whatever but you'd still have your home

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with the nice xbox set up So how do you

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make this magic happen Well the process used to cost

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thousands of dollars in require a real lawyer Today Most

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people just go to legalzoom dot com fill out a

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few forms about three hundred bucks and voila they're done

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They're officially incorporated as an llc limited liability corporation Well

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most people officially registered their companies in delaware because that

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state offers extremely cheap taxes easy filing systems and it's

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set up to accommodate corporate filings at scale So you

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as the new filer get the benefit of walmart pricing

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for the process And along with that wal mart pricing

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comes the freedom to wear sweat pants in public Yeah

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you just keep doing you and the limit your liability

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It's a smart thing to do L l c three

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letters