Incorporate a Business – Steps to Follow

2007-03-08 10:33:40

( Business )



The steps necessary in incorporating a company are the same whether you own a multinational company or a small enterprise.

Things you need to know before you incorporate a business

Before starting to incorporate a company, you need to consult an accountant or a lawyer to help you determine what type of corporation is appropriate for your business.

Next, make a decision on where you want to incorporate a business. You can opt to have an in-state, out-of-state, or offshore corporation. If the size of your company is small or medium, it might be best to incorporate a business where most of its transaction is conducted.

You and the co-founders of your company also need to enter into a preincorporation contract, which will establish the number of shares to be issued and at what price, to whom the stocks will be sold, and the corporation’s first board of directors. This is important in preventing disagreements after you incorporate a business.

Paperwork needed in incorporating a company

Visit the office of the Secretary of State to secure the required papers to apply for the registration of the name of your corporation. After lodging your application, the office will tell you if your desired name is already taken.

You need to make a draft of your group’s articles of incorporation when incorporating a company. Be sure to follow the instruction given by the Secretary of State’s office when preparing the articles.

Next, the incorporators need to sign the certificate of incorporation that the office will send you. The name of your business, the reasons for forming the group, the domicile and other relevant information about the corporation is included in the certificate.

Stockholder’s Meeting

After receiving the corporate charter, your company must hold a shareholder’s meeting. Adoption of corporate regulations and the election of the members of the board are some of the things that need to be voted on during the meeting.


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