Do you know how to incorporate your business?
How to incorporate your business, that is the question. If you are in the process of starting a business, it’s an important question, and it’s one you need the right answer to before you get to work. Incorporating your business will help you protect your personal assets from any legal action that your business might face. It also sets you apart and can help boost customer and vendor perception of your business because of the corporate tag.
How can you know what the right information is? You’ve come to the right place. Here’s what you should know about how to incorporate your business.
First Things First
What’s your company name? If you have your heart set on a brand name for your business, the first thing you need to do is make sure it’s available and not already taken by another company. You can do this with the secretary of state office. They want your business name to be different from any other business, and they want it to be an accurate reflection of your company. In other words, it cannot be something that is misleading to the public.
Filing the Paperwork
A business can’t just claim to be a corporation, and that’s that. You must file paperwork with the state to authorize your incorporation. Articles of incorporation must include the following:
- Corporation name
- Corporation address
- Statement of the purpose of the corporation
- The name of the registered agent
- Names and addresses of the company’s board members
- Name and signature of the incorporator
- Declaration of the number of shares held or offered by the corporation
Once you file the paperwork with the state, you must create your corporation’s organizational structure. This will include creating bylaws that regulate how the board of directors functions and the election of officers. The bylaws will also describe the running of the corporation, who can call a board meeting and the process for conducting the meeting.
Create a Share Certificate
A corporation must have shares that they hold or offer for ownership of the company. You must create a share certificate once you file the articles of incorporation. This is a document that shows proof of ownership of the shares the corporation indicated on their articles of incorporation. It’s signed on behalf of the corporation and is a legal document.
You Must Operate as You Incorporate
If you decide to incorporate your business, you must operate as a corporation. You’ll need to follow the bylaws and operate under the guidance of your board of directors. Additionally, every year in the month of your initial corporate filing, you’re required to file a Statement of Information. This paperwork includes much of the same as your articles of incorporation including all of the pertinent company information, a description of the business, and a signature by someone authorized within the organization.
If you’re ready to incorporate your business, the good news is the process is pretty straightforward once you know what you’re doing. For help and guidance when you’re wondering how to incorporate, turn to the team at Incompass Tax, Estate, and Business solutions for everything you need to get your business off the ground and incorporated.