HOW TO INCORPORATE BUSINESS: KNOW THE BASICS

2007-03-08 10:33:40

( Business )



Corporations are growing in number. Proprietorships and partnerships are now upgraded into corporate entities. Business owners have realized that incorporation is not as complicated and expensive as it seems. You can incorporate business without much difficulty if you understand the procedures, and if you prepare the paperwork demanded.

To begin, you have to decide who completes the steps to incorporate your business. You can incorporate yourself, engage a lawyer, or use an incorporation services provider. You can even conveniently submit the necessary information over the Internet and incorporate online.

The incorporation process is strictly governed by state laws. Hence, there are a lot of formalities to be observed. That includes payment of the obligatory fees and taxes. It will cost you a few hundred dollars, but the amount is not as expensive as you think. The procedures and requirements, however, are generally the same everywhere.

You now ask, how do I incorporate my business? First, you and your co-founders have to settle on which state you want to incorporate business. Next, you must pick a name for the company. Verify the availability of that name with the Secretary of State Office. If there are no potential conflicts, it would be wise to reserve your desired name until you formally apply for incorporation.

You will then have to draft, execute and file an Articles of Incorporation that declares the name and purpose of your organization, the location of your business headquarters and other essential information.

After the state has certified and returned your Articles of Incorporation, you must hold an organizational meeting to adopt corporate bylaws and elect company officers. The incorporation process is completed when the stock certificates are issued to shareholders.

On the whole, one need not own a large business or earn millions to incorporate business. Just make sure that you fully comprehend your organization’s needs and capabilities. Only with that knowledge can you decide if the corporate structure is for you.


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