How can I incorporate a business? -

Each state is a little different, but basically you fill out the necessary forms and file with the governing agency in your state. Here in MA (and in many states) you register with the Secretary of State s office. Once you ve incorporated, you will then need to obtain an EIN (Employer Identification Number) from the IRS.http://www.irs.gov/pub/irs-pdf/fss4.pdfIt is usually recommended you then file the sub-S election for your corporation. This allows the income to be reported on your individual return instead of the corporate. This is usually a good idea because subsequent distributions of profit from a standard corporation are considered a dividend and taxed again. By reporting the income on your 1040, it is taxed once on your return and any distributions aren t taxed again.http://www.irs.gov/pub/irs-pdf/f2553.pdf

Check out www.legalzoom.com for the necessary incorporation forms.Good luck!