How Do You Incorporate?

2007-03-08 10:33:40

( Business )



What is a Corporation?
A corporation is an artificial being created by operation of law, having legal personality and rights.

When Does a Corporation Come into Existence?
A corporation begins to exist when it is issued a certificate of incorporation from the Securities Exchange Commission, or its equivalent in your state.

How Do You Incorporate?
To successfully incorporate, you must follow the procedure specified by the Securities Exchange Commission, which determines the requirements for a valid incorporation.

Once Again, How Do You Incorporate?
The procedure specified by a state's SEC may vary from state to state, and country to country. However, some basics are usually required in the applications. These will be detailed below.

The Basics
Corporate Name
A name is necessary to designate your corporation. How do you incorporate without a name? That would be impossible. You must specify a name or you will never be able to incorporate. Pick a name that does not infringe any copyright laws or trademarks.

Purpose, Primary and Secondary
State the primary purpose of your business, and secondary purposes, if any.

Prepare Basic Articles of Incorporation
If you incorporate online, which is possible in many countries, and many U.S. states, you will be given a checklist to go through. It will tell you what needs to be placed in the Articles of Incorporation, the basic document that details corporate structure, composition, and powers.

Ownership
A corporation usually needs at least 5 people before it can come alive. These will be the first shareholders and also, the first incorporators. Depending on where you are incorporating, the minimum number of incorporators may vary.

These basics are common elements required by most countries before incorporation is allowed. In order to determine specific requirements, consult the website of the SEC in the area in which you want to incorporate. To incorporate in Florida, you must go to the SEC, or its equivalent authority, in Florida. Incorporating in Nevada is also similar; follow the process detailed by the Nevada authorities. Special mention should be given to the practice of incorporating in Delaware; for decades, Delaware has been the favorite place to incorporate in. This is because of its relaxed requirements and favorable treatment of corporations. The high number of corporations that have legal residence in Delaware assure Delaware of lucrative taxes.

How Do I Incorporate Online?
The procedure is detailed in the SEC websites of the states and countries that provide online incorporation. To incorporate online successfully, you will need to know firsthand all the requirements of a given state. Do not rely on secondhand information, even if it comes from a lawyer.


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