Filing Articles Of Incorporation For Your Small Business

2007-03-08 10:33:40

( Business )



If you have a small business incorporate your business to take advantage of the liability protection a corporation gives. You will need to write your articles of incorporation when you incorporate a small business.

One of the crucial things you must remember before filing articles of incorporation is getting clearance for your business name. This name is your corporate identity and you must make sure that you alone are using it.

If you inadvertently use a name that is already registered by another party, you may be subjected to an infringement suit. On the other hand, you would not want to be confused with some other company, otherwise, your customers may not find you when they want to buy your products.

Once the secretary of state’s office has given you clearance to use your proposed corporate name, you can proceed with filing articles of incorporation. Your articles must expressly state the corporate name, authorized number of shares to be issued, the name and address of its registered agent, and the name and address of each incorporator. Although several people can be incorporators, only one incorporator is required by law.

You can determine the number of authorized shares to be issued in consultation with your attorney or accountant. This impacts on the capitalization of your corporation and may affect efforts to raise equity or obtain loans in the future.

The designation of a registered agent is a requisite when filing articles of incorporation. This is particularly true if you are incorporating the company outside your home state. The registered agent will represent your company in the state of incorporation. All official and legal communications will be sent to your company only through the registered agent.

After filing articles of incorporation, you usually wait a few weeks for approval. In the meantime, you should start opening your bank accounts and preparing your corporate bylaws.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.