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There are many people who claim that you should go ahead and register a corporation in a more business-favorable state, such as Delaware or Nevada, two of the current favorites. In many cases, this is not true - you're much better off registering your corporation in the state where you conduct most of your business. After all, you will have to qualify for doing business in your own state and city, anyway. You will also have to pay income taxes in your own state. It's true that sometimes there are corporate laws in those countries that are more flexible, but these benefit mostly large, publicly owned corporations and not the small privately-help corporations most small business owners intend to have.

Incorporating is an easy and fast process as long as %100 of the company shares will be help by you, your family and your partners. Things get a little more complicated when parts of the company are sold to the public. In most of the small business cases, this is not the case.
So if you form a simple corporations, all you need can be done in a few hours.

Here are the steps for legally forming a corporation (in general):

1st step - Check with your state's corporate filing office, as well as with the federal and state trademark registers - to be sure the name you want to use is available.

2nd step - Fill in blanks in a preprinted form (available from commercial publishers or your state's corporate filing office). You will state the purpose of your operation, the place of business, and the number and type of stocks.

3rd step - You need to pay a registration fee of 0-00, depending on the state.

4th step - you will need to complete Corporate Bylaws. They will outline a few corporate housekeeping details such as when an annual shareholders meeting will be held, who can vote and how the shareholders will be notified if a special meeting will be held.

If you're not selling any stocks to the public, conducting corporate business is very simple. You will basically need to record key corporate decisions, such as taking a loan, or buying property such as real-estate. You will also need to hold an annual meeting.

There are many self-help book out there that make it very simple to incorporate your business in your state without getting a lawyer. These books will also teach you to run your corporation smoothly.

About the Author: Visit incorporate-how-to.info from Jane Ling, For how to incorporate, incorporate business and more information about business forming