ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos

Finance: How Do You Become Incorporated? 48 Views


Share It!


Description:

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.

Language:
English Language

Transcript

00:00

Find it a la shmoop how do you become incorporated

00:06

Well the first question you want to figure out is

00:08

why do you want to become incorporated in the first

00:11

place Well here's the sitch if you have an ice

00:13

cream shop that you own personally you've got twenty grand

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

01:12

was the twenty grand from your company bank account You

01:15

could have closed up shop and gone into surfboard waxing

01:18

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

01:21

with the nice xbox set up So how do you

01:24

make this magic happen Well the process used to cost

01:27

thousands of dollars in require a real lawyer Today Most

01:31

people just go to legalzoom dot com fill out a

01:33

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

01:37

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

01:43

most people officially registered their companies in delaware because that

01:46

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

01:51

set up to accommodate corporate filings at scale So you

01:55

as the new filer get the benefit of walmart pricing

01:58

for the process And along with that wal mart pricing

02:01

comes the freedom to wear sweat pants in public Yeah

02:05

you just keep doing you and the limit your liability

02:08

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

02:11

letters

Up Next

GED Social Studies 1.1 Civics and Government
39790 Views

GED Social Studies 1.1 Civics and Government

Related Videos

Fake News
11936 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1774 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...