Top Five Mistakes in Forming Your Corporation

Generally, incorporation is the best form of business for the small-business owner -- including start-ups. The advantages in terms of personal asset protection, credibility, taxes, ability to finance operations and the enduring nature of the corporate entity far outweigh the disadvantages -- but only if you plan properly.

Getting sound financial and legal advice may up your cost of incorporation from a few hundred dollars charged by online services to a few thousand charged by a CPA or attorney, but in the long-run, the costs of doing things right pale in comparison to the hard costs of being in the wrong type of corporate structure. Or worse yet, finding yourself subject to fines and penalties you never knew existed.