I've had a sole proprietorship for quite some time now, it's got to be at least five years. I own a landscaping company. My business isn't big, I've got two employees I manage. A couple of my friends have their own businesses too, one of them has incorporated and he filed in Nevada, though we both live in California.
I decided that in order for my business to grow and at the same time, my head be cleared of any un-wanted stress, I should form a legal entity, I chose a corporation.
I did some research online and found several sites including the official government sites, which had limited help, as well as several companies offering to form the company online.
After my research I decided that unlike my friend, I would file in my home state of California, it seemed less stressful than to deal with getting any kind of permission to do business where all my business will take place anyway. Against the advice of my friend (who used a lawyer) I found a few companies online that seemed to do the same thing. I'm often weary about spending money online, call me old school, but I talked to a few companies (the ones that I could actually get on the phone) and Incorporate Fast was the most knowledgeable and friendly, there was one a little cheaper but they didn't answer the phone when I called.
I filled out basic information online, and within about an hour I had an email stating that my articles of incorporation were prepared, from there I just downloaded those documents, signed them, and sent them off to Incorporate Fast. They filed the documents with the state and monitored their approval. They emailed me when it was approved and even sent me a kit with stock certificates, an embossing seal, minutes and bylaws.
My friend paid over five times what I paid and got the exact same thing. I also had to notify the IRS of the change of entity type because they had to give me a new employer identification number.
All in all the process was as easy as filing for a DBA (doing business as) if not easier, because I didn't have to go down to any office.
Here are some useful links:
California Secretary of State
Nevada Secretary of State
Easy File A Corporation Online
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