Telephones, business cards, computers . these are the typical must-have purchases you need when starting a business. But incorporating is often the true launching pad for any businesses.

Why would you want to incorporate? For protection. When one incorporates, the business is legally deemed a separate entity from its owners, shielding them from personal liability for business debts and obligations.

Incorporating is a fairly straightforward process for most companies. Although you can use a lawyer to guide you through it, incorporating may not cost as much nor take as long if you use an incorporation service. These services specialize in preparing and filing all the necessary paperwork to get that Inc. or LLC after your company name.

Not surprisingly, a number of services have now sprung up on the Internet. Filling out the incorporation order form can take as little as 15 minutes. Information you are usually asked to provide will include: the kind of corporate structure, the name of the corporation, names of directors or managers and officers, and the amount of capital stock authorized.

But incorporating online isn't quite like the real world. While online incorporation applications fulfill necessary requirements (since the state will reject any application that falls short), you won't get much in the way of one-on-one attention. A lawyer can assess your individual situation and advise accordingly.

Finding a proper balance between using an online service and legal consultation is probably the most cost-efficient strategy. You can have a lawyer review the articles of incorporation, which outlines the basic structure of your company. The online service can fax, mail, or e-mail you the documents before they are sent to the state. The good news is that any changes at this point are usually handled free of charge.

How long you have to wait to get your incorporation certificate depends on where you're incorporating. Though it's often easiest to incorporate in the state where you conduct business, it's not required; this is another area where you might need some legal advice.

Incorporating online can cost anywhere from about $150 to $500, but that doesn't include charges you may incur if you expedite the filing process or if you want optional forms prepared.

If you don't have legal residence in the state in which you are incorporating, you may also have to pay registered agent services, which can run about $125 a year. A registered agent, which is required by law, is a resident of the state in which you are incorporated who is designated to receive important legal and tax documents on behalf of your company.

So how much can you save by going the Internet route? Fees vary by state, but the cost could be as low as half of what you might have had to pay your lawyer in billable hours, which can reach $100 an hour depending on your geographic location.

The good news is that tax benefits that are available with incorporating may more than offset these costs. Who knows, incorporating may be your first profitable undertaking.

Quick tips

Inc. blot. Incorporating is not for everyone. Those with a low tolerance for paperwork and with limited budgets may not find the benefits to be worth it. The lure of Delaware. Many businesses incorporate in Delaware because of the lower fees and the easier requirements. Savings alert. Many online services offer registered agent services for free for the first six months.