Incorporating a business has never been easier

There are typically three types of fees for incorporation: a fee to file the articles of incorporation, which depends on your state; a first-year franchise tax payment, which can range from $800 to $1,000; and attorney fees, should you seek attorney help.

No. Though both are a type of business entity, LLCs (or limited liability companies) have a different ownership structure and less reporting requirements.

Both types of business entities protect owners so they're not personally on the hook for business liabilities or debts. LLCs have one or more individual owners, while corporations have shareholders, and corporations generally have more formal record-keeping and reporting requirements.

Even though LLCs are considered easier to start and maintain, investors tend to prefer corporations.

It helps ensure that you and other shareholders aren't personally on the hook for company debts and liabilities.

Articles of incorporation are a requirement for forming a corporation. They comprise a formal document that establishes the corporation as a separate business entity.

The articles become a public record and provide important information about the corporation, including its name, contact information, and information about its shares of stock. The exact information that the articles need to include vary by state.

Owners of a corporation are called shareholders, and they elect directors to oversee business operations. Corporate profits, called dividends, are distributed to shareholders according to the number of shares each owns.