Incorporation Rules To Follow

2007-03-08 10:33:40

( Business )



Incorporation rules vary from one state to another, but there are some basic steps that must be followed. First you need to decide if you would like an in-state, out of state or foreign corporation set up for your business. While it is logical to set up the business in the state where most of the operations occur, some companies opt for states wherein business taxes are much lower and the privacy of the incorporators is well-protected.

Next, you need to come up with a group of people who will serve as your board of directors. If you are setting up a stock corporation, you need to determine who will buy stock and at what price these will be sold. There are a bunch of forms that you need to request for from the Secretary of State, all of which have to be filled out before you can register your corporation. You also need to come up with an original name for your corporation since duplication is not allowed.

Articles of incorporation are also a necessity, since these will contain the tenets that your corporation will operate on. Part of the incorporation rules includes providing a purpose for your company and a business address, all of which can be seen on the certificate of incorporation that will be given to you.

Also part of incorporation rules is having regular meetings with your stockholders to keep them updated on the activities of the corporation that they have invested in. It is always advisable to seek assistance from a lawyer to ensure that you have complied with all the business rules and that your articles of incorporation have no loopholes. In some cases, the attorney you have worked with can be listed as one of the incorporators and then can resign later at the first meeting with stockholders.


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