MyCorporation provides a platform for a “business in a box” that enables new businesses to get their businesses started and incorporated quickly. It also files the necessary paperwork with government agencies and has educational resources for entrepreneurs.
The Calabasas, California–based company is headed by CEO Deborah Sweeney and was founded by several of her law school classmates in 1998. Being a lawyer by trade, Sweeney saw the need for businesses to incorporate and protect their assets. She and her partners realized how difficult it was for new businesses to spend the time to incorporate. Furthermore, it is expensive to hire a lawyer, so she wanted to provide new businesses with another option. The company’s business in a box originated from customers asking, “What else do I need?” “How do I get a logo?” or “How do I start my accounting?” The aim was to work with partners to put together a simple, one-stop option for getting a business off the ground both from a legal and finance standpoint.
There are approximately 2 million new corporations or LLCs filed throughout the United States in a given year. In addition, approximately 25 million new businesses are started every year. MyCorporation’s target segments include new businesses with one to two employees. The company also target consultants and professionals, as well as small startup Web-based businesses. Additional target segments are CPAs and lawyers who recommend MyCorporation to their clients or use its products themselves “behind the scenes.” Clients are found in all 50 states and include Big Jacks Water Ice Factory [water ice is a Philadelphia term for the popular dessert Italian ice]; Nutrition Consultants, LLC; Carlette Construction and Consulting; and TeamOwens313 LLC, a business services provider.
The company offers four primary incorporation bundles at prices ranging from free, $99, $199, and $299. The $299 bundle is the complete “Business in a Box” and includes business maintenance services. Each order is also accompanied by a state charge, which is specific to the state of incorporation, and pricing for this ranges from $30–$200 for an incorporation.
The most prominent competitor is LegalZoom. MyCorporation seeks to distinguish itself from the competition by focusing on the new business niche and offering business-only related products and a comprehensive package (Business in a Box). Additional competitors include corporation.com and bizfilings.com. My Corporation’s free offer enabled it to penetrate the market and get traction early. In addition, partnerships with companies like Intuit, Network Solutions, Nolo, and VistaPrint have enabled the company to offer goods and services, as well as bundles, that are unique to MyCorporation and that Sweeney says have been well-received by customers.
Revenue is just under $10 million, and the company has not raised any financing thus far. Sweeney and her partners did sell MyCorporation to Intuit and she stayed on to run it, but she later bought back the company and is the sole owner. She initially sold MyCorporation.com because of the strong synergies between the companies. MyCorporation served as a feeder business for Intuit products such as Quickbooks. However, she later felt that the flexibility required by MyCorporation and the fast-paced business model had necessitated a separation. While the company is not looking to raise money, there are plans to grow through more partnerships. Sweeney says that the bundled packages and other offers have renewable features that enables the business to grow year after year. Its annuity products, including registered agent services, annual report services, and the IncGuard package that provides notices regarding filing dates and deadlines, are key products that continue to lead MyCorporation’s growth.
As for an exit, Sweeney says, “I am so pleased with the business every day I come to work. It makes me happy to come to work to a group that is supportive, hard working and devoted. At this time, we’re in growth mode, and we seek to continue to grow without exiting.’ One day I may consider an exit strategy, but for now, I’m happy to continue to maintain this business as a lifestyle business. It’s a great lifestyle, and I’m enjoying every minute of it.”
This segment is a part in the series : The 1M/1M Deal Radar 2010