Incorporating a business before discharge?

[dasherkin]

I want to incorporate a business name, im not going to operate under it, just want to get it set up this year, i discharge on december 27, is it ok to do this before discharge?

[HHM]

If all you want is a "NAME", you do not need to incorporate. Many states allow you to register a trade name to hold onto the name. Also, if you buy the domain name or register it as a trade mark, that can work too. But the easiest way is to simply register a trade name assuming your state provides that option.

But to answer your question, yes, it is okay to do so AFTER filing, but BEFORE discharge.

[dasherkin]

great thanks, i want to incorporate, i heard that incorporating is a lot better then just having the name

[tcreegan]

heard that incorporating is a lot better ....?

filing articles of incorporation, bylaws, file for IRS EIN, register w/ state for Mich Business tax, file annual report w/ Dept. of Labor & Econ Growth, keep required records, and God forbid you hire someone!

...better than what?

[dasherkin]

then just dba. in the book inc and grow rich, it said that you can sell your corp later and make a lot of money from just the name. get business credit and bank account so i can separate myself from my business, so if my business fail, i don't fail

[HHM]

then just dba. in the book inc and grow rich, it said that you can sell your corp later and make a lot of money from just the name. get business credit and bank account so i can separate myself from my business, so if my business fail, i don't fail

jeez, really...that is such bogus crap.

[enuffznuff]

Incorporated or not, as a small business you will likely have to sign a personal guarantee on any credit (so, if the biz fails, you're still in trouble.) People with huge businesses and lots of liquid capital can avoid that, but most of us little folks can't. My business was incorporated, but I had to sign personal guarantees on everything (bank accounts, LOC, credit cards, commercial leases...EVERYTHING). So when the business went under, it didn't help me any that I was incorporated, in that respect.

[dasherkin]

really? it didn't help you at all? i have been a lurker on another board for about 5 years on how to start my own business, i've picked up if you start slow and build up a 80 paydex score you won't have to sign any pg's and if they ask you too, then don't do it... i was only starting now because i finally figured out how to fill out the paper to inc myself without a lawyer so it will be 60 bucks instead of thousands, i wasn't planning on starting the business yet, i certanily don't plan on getting any business credit until my personal credit is above 700.. right now im in the super low 500's.... so, it will be a verrrrrrrry long time

[HHM]

Yes, there are proven ways to build "business credit", it takes about 2 years. But to what end?

The bigger picture is, what is the business actually set up to do. Names really aren't worth that much these days and the real money in that arena (although more limited now) is in domain names, not company names. Also, unless your trademark the name, the company name is only limited to the state of incorporation.

In the business re-selling game, there are essentially three products.
1. Develop a business with business credit with the purpose to sell it to someone who needs an entity with biz credit established. Note, that does require you to SPEND money, so you either need to have independent income to support the business spending (you have to USE the credit to keep moving up the tiers of biz credit). However, to get to the top tiers of business credit, the company needs to actually do something because the business loans you get at those upper tiers require documentation.

2. Sell failed businesses for tax loss carry forward. This is actually more common in the bankruptcy sphere. When a company files chapter 7, one of the "assets" is the tax loss carry forward which can be sold once the BK trustee strips the assets of the business.

3. Incorporating a business with a name that someone actually wants. This avenue is highly speculative.

[dasherkin]

i think someone could change the name of the business if i decided to sell it, that the length of the corp is what is portfible. something called a shelf corp. thanks for responding btw

[HHM]

i think someone could change the name of the business if i decided to sell it, that the length of the corp is what is portfible. something called a shelf corp. thanks for responding btw

Yep, that is out there (the reason for a shelf corp is to have length in business which is one factor in business credit). The problem is, there are already huge farms of these businesses in existence with no real way for the individual to differentiate themselves.

The Inc. and Grow Rich crowd has more to do with tax planning, but there is a fine-very difficult to see-line between what they suggest and tax fraud.