How Do I Incorporate

2007-03-08 10:33:40

( Business )



Corporations in General
In the eyes of the law, a corporation is a person. It has rights, powers, and even obligations. A corporation is created by operation of law, meaning it comes into being because the law allows it. The corporation laws of each state will determine when and how a corporation comes to life.

How Do I Incorporate?
To successfully incorporate your business, you must carefully follow the procedure outlined by the law in force in your state. The proper procedure and required documents will vary from state to state, but some general requirements exist. Some of these will be explained later.

How Do I Incorporate In Another State?
If you plan to in another state, you will need to familiarize yourself with the state law involved. A resident of Nevada who is incorporating in Florida will need to follow Florida law, not Nevada law.

General Requirements for Incorporation
To incorporate, you will require capital, other persons willing to incorporate with you, and a document called the articles of incorporation.

Money Matters
Capital is always required when incorporating a business. You will be required to specify the amount of money that you plan to use in your business. A percentage of this amount is usually paid in before incorporation is approved.

Strength in Numbers
There is usually a minimum number of persons who must join you in incorporating. These persons are called incorporators.

Powerful Paper
The articles of incorporation will contain basic information such as the names and number of incorporators, the purpose of your business, and the lifespan of the corporation. The state's corporation law will determine the specific things which must be written in this document.

How Do I Incorporate Abroad?
To incorporate your business in another country, you will usually need to follow stricter requirements. Foreign countries often require that you acquire a license to do business before you can attempt to incorporate. You will need to familiarize yourself with the foreign law involved. The best way to do this is to obtain information from the Securities Exchange Commission, or the equivalent agency, of the country in which you plan to incorporate.

The Process of Incorporation
Once you have submitted your requirements to the government agency (usually the SEC), they will be reviewed. If all is in order, you will be granted a certificate of incorporation. The granting of the certificate of incorporation brings your corporation to life.


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