Incorporation involves detailed processes and is required to comply with different state and federal laws.
That is why it is recommended that you hire a corporate law attorney to help you in starting a corporation.
The process of incorporation and corporate law goes hand in hand in bringing corporations into being.
Under corporate law, attorneys can help the incorporators structure the stock and bond offerings, and the bond and insurance loans that provide the company with capital.
Corporate lawyers can also facilitate joint ventures, licensing arrangements, acquisitions, mergers, etc
To help you understand, here are the general steps in starting a corporation:
Choose a state where you will incorporate your business
The state that you choose should provide your business with favorable laws that will help your company once it is incorporated.
Once you have chosen, visit the website of the Secretary of States Office.
You should find guidelines about the incorporation procedures of the state.
Choose a Name
Make sure that the name of your corporation is unique and is not yet taken by other companies.
Most Secretary of State Website has a database that will help you identify names that are already used by other companies.
A corporation may also use a trade name other than its corporate name.
If that is the case you will also have to file the trade name under a Fictitious Business Name statement to the appropriate county court.
Consult your corporate attorney about the process.
Choose Type of Corporation
In this process, you can choose from the three types of corporate business structure.
The three types are:
C- Corporation This refers to the traditional type of corporations
S- Corporation A type of corporation often used by small businesses to avoid double tax
Limited Liability Company (LLC) More like a type of partnership that provides investors with limited liability
Write Articles of Incorporation
The most important requirement of incorporation is the Articles of Incorporation.
The Secretary of States website should have the required information you need to submit, but generally it includes the following:
Name of the corporation It may contain lower or uppercase letters, numerals and punctuation marks.
Purpose Before the corporation is approved, you should state an extensive business purpose that is in compliance with the corporate laws of the state.
Agent for service of process The Corporation must appoint a point person who will handle the legal processes of the company in the future.
Authorized Stocks This refers to the share limit and the share classes that a person may have as part of the corporation.
Filing Articles of Incorporation
File the Articles of Incorporation at the Secretary of States Office and pay the filing fee.
It may take several weeks before you can get any feedback about the status of your company.
To make sure that you are following the procedures correctly, always consult your corporate attorney about the moves you want to make.