Frugal Formation
| Aug 06, 2009 |
In the wake of the new ATDC John Cottingham, my associate, and I are getting a number of requests from entrepreneurs who are currently bootstrapping on how to form a corporation. While I am no attorney I thought it would be interesting to lay out the five steps I personally went through when forming a Georgia corporation last month.
1. Did a trademark search at the United States Patent Office to see if there is a filing for the name on record. Searched Google and Bing as well. No use. Cost = $0.
2. Filed a name reservation from with the the state of Georiga. Cost = $25.
3. Used the information sent in the Name Reservation Confirmation to file Articles of Incorporation online. "The Corporations Division strongly recommends that filers obtain professional legal, tax, and/or business advice to assure the filer's goals and intentions are met, and that requirements of the law are satisfied, both before and after incorporation." I ignored them. Cost = $100.
4 Published an announcement in a legal organ of the state of Georiga. Cost = $40.
5 Applied for an EIN. Cost = $0.
This certainly is not a long term solution for a meaningful company. It is a short-term solution that cost $165, enables me to open bank accounts, allows me to take money from a customer, and provides some personal liability protection behind a corporate shield. If the company keeps moving I am certainly going to bring in an attorney and spend $4,824.13.
For the moment I am being capital light and frugal.
Posted in Entrepreneurship, Startups
Tweet
1. Did a trademark search at the United States Patent Office to see if there is a filing for the name on record. Searched Google and Bing as well. No use. Cost = $0.
2. Filed a name reservation from with the the state of Georiga. Cost = $25.
3. Used the information sent in the Name Reservation Confirmation to file Articles of Incorporation online. "The Corporations Division strongly recommends that filers obtain professional legal, tax, and/or business advice to assure the filer's goals and intentions are met, and that requirements of the law are satisfied, both before and after incorporation." I ignored them. Cost = $100.
4 Published an announcement in a legal organ of the state of Georiga. Cost = $40.
5 Applied for an EIN. Cost = $0.
This certainly is not a long term solution for a meaningful company. It is a short-term solution that cost $165, enables me to open bank accounts, allows me to take money from a customer, and provides some personal liability protection behind a corporate shield. If the company keeps moving I am certainly going to bring in an attorney and spend $4,824.13.
For the moment I am being capital light and frugal.
