In news that should be terrifying to most US states’ technology administrators, Rwanda (yes, that Rwanda) now has an online business registration system that is faster and easier than most US states. This system allows a person to form a company in Rwanda in 1 hour.

Compare this to the standard processing time of select US Secretary of States (as of June 2010):

• California Secretary of State: 70 Days
• Maryland Department of State: 75 Days
• Nevada Secretary of State: 45 Days
• New York Secretary of State: 20 Days
• Washington D.C. DCRA: 40 Days

So if you want to file a DBA, incorporate a business or form an LLC in the United States, you will almost certainly have to wait longer than your entrepreneurial equivalent in Rwanda. This should be a wake up call to each US Secretary of State’s filing office: in the largest, most powerful economy in the world, we are now falling behind 3rd world countries (recovering from a brutal civil war) in the time it takes to register a business.

The number of new business registrations is an important indicator of the overall health of an economy and US State governments should make upgrading their systems a priority not only to make business startups faster, but to improve and streamline the internal operations of their own offices.

Many entrepreneurs and startups are very concerned when they go to start their company because they’re not sure what type of business entity (Corporation, S-Corporation, LLC, etc.) a venture capitalist (VC) would want their company to be formed as, which state they should incorporate in and the types and number of shares.

However, many entrepreneurs and startup advisors believe that this should not be the primary concern. For example, if you incorporate in California when you start out, you can then “re-incorporate” in Delaware later should your investors require this. Or if you don’t authorize enough shares, then you can amend your original articles of incorporation later to reflect more shares, or different classes of shares (common shares vs. preferred shares).

There may be an exception in regards to the LLC – sometimes this entity is more difficult to modify for a venture capitalists needs – VC’s almost always prefer to work with the C-Corporation.

So, in essence, many companies start out in one structure, based in one state and eventually end up being changed considerably later. Instead, it might be advisable to work on working on your product or service, getting the company going in whatever form and then worry about these corporate formalities later – if you are at the point where they are modifying your company, you will probably receiving significant funding and these formalities will be handled by seasoned lawyers.

If you want to do the Delaware option at startup, see how a lawyer would set up a Delaware company now if were a startup. Almost always this is a Delaware C-Corporation.

If you’d like to see some of the typical venture capital agreements or how they typically modify the articles of incorporation, then view these “Model Series Seed Agreements“. This includes documents like Investors Rights and a “Term Sheet”.

Long story short, it’s ultimately up to you how you want to structure your company in the beginning, but the links mentioned above will show how a VC or startup lawyer might eventually structure your corporation.

If you’ve thought of a business idea and want to start a company, but aren’t sure how to begin, the good news is you’re already on your way. The first step to starting a company is having an idea. Your idea might come from a personal interest or an activity you’re particularly good at, such as opening your own bakery if your cupcakes are the best in town. Your idea might be the solution to a common problem that a lot of people need help with. Maybe you’re thinking about buying a business that’s for sale to put your own effort into improving an existing product or service. The most important thing is that you feel passionate about your idea and have the determination to see it grow from a start-up to a working business.

Once you’re certain that your idea is one you will want to follow through with, and is realistic for you as an individual—someone who doesn’t like children would not want to open a daycare, for instance—you will need to prepare a business plan. A business plan will help you figure out a step-by-step process for growing your business from a simple idea to a successful enterprise. A business plan might sound complicated but doesn’t have to be. You can start a company with a simple business plan that you’ve outlined yourself on a piece of paper. However, if you plan to apply for a business loan to start a company, you will need a more comprehensive business plan to satisfy the requirements of your lender. There are many books and online services available to help you create a comprehensive business plan.

In addition to outlining the structure of your business and your business goals, your business plan should determine the costs involved in starting a company. Many small business owners start a company with very little capital and rely on credit cards or the help of friends and family. Some small business owners will also seek investors to help them finance the company during the start-up phase. If your business will require a large amount of money to lease office space or buy special equipment, you will probably need to apply for a small business loan or a bank loan. You can learn more about your loan options by visiting the website of the Small Business Administration or visiting your bank.

In addition to writing your business plan and working out how to finance your business, you will need to follow the required legal process to start a company. Choose a name for your company and select the legal structure that will work best for your business, such as a incorporating as corporation or an LLC. You will need to obtain a Federal Tax I.D. Number, also known as a FEIN or EIN, which is a company’s identification number much like an individual’s Social Security Number. A FEIN can be obtained through the Internal Revenue Service or through an online incorporation service when you start a company. An online incorporation service will also help you start a company by guiding you through the official formation process and assisting with the necessary paperwork.

• About what I expect: IRS Has 70% Error Rate in Issuance of Taxpayer ID Numbers, Resulting in Fraudulent Tax Refunds http://ow.ly/P6rq #

• RT @dja2law: Out-House General Counsel: 25 Free Legal Resources for Start Ups: http://bit.ly/5qoLDr via @addthis #
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• Join our incorporation and LLC formation Affiliate Program | $25-35/sale: http://www.mynewcompany.com/affiliates.htm #
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• Free Incorporation and LLC Formation Guidebook: http://www.mynewcompany.com/startcompany.htm#1-6 #
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• @CJAnyasor we can help you with your LLC if you want: http://www.mynewcompany.com/startcompany.htm in reply to CJAnyasor #
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Build a system, not a product: http://ow.ly/JFZK

Ten Tips for Growing Your Small Business http://ow.ly/JFFK

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Feels Like the First Time – Entrepreneur.com http://ow.ly/IEQI

Want to Help Poor People? Help Start Businesses « The Enterprise Blog http://ow.ly/I2HJ

When Being Positive Is Positively Meaningless | HarvardBusiness.org http://ow.ly/I1c8

Apples, Oranges, and Making Startups Pay to Pitch. http://ow.ly/HVlG