The major benefit to forming a corporation, or "incorporating," is protection against liability. Lawsuits and debt will fall on the corporation rather than on individual people. Forming a corporation starts with a few simple steps:
- Name it. Decide on a unique name for the corporation and register it in the state of incorporation.
- Form it. A corporation needs officers, shareholders, directors, bylaws and shares.
- File it. Complete and file the correct paperwork.
A little bit of action will lead to protection for yourself and other members of your small business.
Action Steps
The best contacts and resources to help you get it done
Choose a name and state
A good corporation name involves more than creative genius. Corporations need unique and functional names that are not already in use. Once you have found an effective name, quickly file for a trademark at the U.S. Patent and Trademark Office (USPTO).I recommend: To find out if a name is taken, research possible names at the USPTO, check business directories like InfoSpace or conduct an Internet domain name search. You can incorporate in another state besides your state of residence. Nevada and Delaware are popular for tax reasons; other states such as Wyoming and New York are gaining popularity.
Take care of the people
Every corporation needs officers, shareholders and directors. Officers usually include a president, vice president, secretary and treasurer. Once these roles are assigned, the corporation will hold the first meeting of the board of directors and assign stock to its shareholders.I recommend: Find specific duties and responsibilities for each position on Web sites like Coollawyer.
Create bylaws
Bylaws are the rules dictating how the corporation will be run. The board of directors is responsible for making and enforcing those rules.I recommend: Materials to create bylaws can be found online.
File the paperwork
No matter what type of corporation you form (C, S or limited liability); it does not exist until the paperwork is filed with the state of incorporation. A C corporation needs to file Articles of Incorporation, Bylaws, Organizational Board Resolutions, Stock Certificates and Stock Ledger. An S corporation needs to file Articles of Incorporation, Bylaws, Organizational Board Resolutions, Stock Certificates, Stock Ledger, IRS Form 2553 and State S Corporation election.I recommend: These forms are available online, as well as further information on C corporations and S corporations.
Tips & Tactics
Helpful advice for making the most of this Guide
- Corporations aren't required to provide insurance and/or pensions. If these benefits are offered, take time to research the federal law standards by which they need to be managed.
- The differences between C and S corporations only involve taxation. Corporations are automatically in the C class unless they elect to become S corporations.
- Most states allow one person to hold several positions in a corporation. For example, in many small corporations, most or all of the shareholders are also directors.
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Innovative legal solutions and flexible, client-focused billing arrangements. Founding lawyer Lee Berlik focuses on business law and litigation.
Enforce Contracts | Arbitration | Why BerlikLaw
www.BerlikLaw.com
Forming a Corporation in Wyoming
Shows the advantages of forming a corporation in Wyoming. Offers services for privacy, asset protection, and tax planning. Also aged shelf companies.
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Shows the advantages of forming a corporation in Wyoming. Offers services for privacy, asset protection, and tax planning. Also aged shelf companies.
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Online Company registration plus bank/mail services for US and international clients. Free consultation and video reports available.
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Colorado Corporation and Partnership Law
Colorado incorporation services, registered agent services, corporate compliance and document filing to law firms and individuals.
Contact Us | Why Incorporate? | Registered Agent | FAQs
InCorp.com/Colorado-Incorporation
Colorado incorporation services, registered agent services, corporate compliance and document filing to law firms and individuals.
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