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How Do I Form a Corporation?

Once you've decided which legal structure you would like your business to form (LLC, Corporation, etc.), you'll then need to gather any and all pertinent information in order to begin the filing process. 

Information Needed for Forming a Corporation

Filing the Paperwork. Once you have the following list of information, you can file the appropriate documents with the state you've decided to form your corporation in. Filing fees can range anywhere between $100 and $800, depending on the state. 

  • The name you've chosen for your corporation. You must add Incorporated, Inc., Corporation, or Corp., at the end of the proposed name.
  • The purpose of the business.
  • Your contact name, business address, and shipping information.
  • Name and address of all officers and directors.
  • Name of shareholders.
  • Registered name and address of agent.
  • Share and par value information.  

Next Steps

Creating the Bylaws. Next, you'll need to create the corporation's bylaws. These bylaws will consist of rules that will be administered in order to make sure the day-to-day operations of the business are followed. 

Hold Board of Directors Meeting.  The initial board meeting will cover many formalities that will dictate the direction of the corporation. Some of the more important decisions that will be made include adopting the bylaws, setting the fiscal/accounting year, appointing the corporate officers, and issuing shares of stock. 

Issuing Stock. Issuing stock is required, and can be difficult as  the issuing shares are divided up in order to determine ownership interests. 

Obtain Licenses/Permits. Lastly, you'll need to obtain any and all licenses and/or permits that pertain to your particular business. Examples include a business license, employer identification numbers, zoning permits, and seller permits. 

Retaining Corporate Status

Once you've completed the above steps and accordingly have formed a corporation, you'll need to retain the corporation's status as a complete and separate entity by following a few formalities, such as documenting corporate decisions and keeping meticulous financial records. By doing so you're continually establishing the status of your corporation.

 

 

 

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