Not understanding how to incorporate the right way could land you in hot water.
Do you know how to incorporate your company? As your business begins to grow, you may wonder which steps you should take next. No matter the size or industry of your company, you should consider incorporating. Until you do, you are personally responsible for the actions of your business. Unless you want to risk losing your private assets or deal with legal headaches, it’s time to make your company an official LLC. Here’s how you can begin:
Hello! What’s Your Name?
Before you can start filling out the paperwork, you need to select a company name. While this task may sound easy, you could run into a few bumps along the way. Many people have an idea for the “perfect” business name; however, you must make sure it’s available before you use it.
Your company name cannot be too similar or infringe upon the name of a competing business. Any name you select must also reflect the purpose of your business. Misleading the public with a confusing name is not allowed. You also don’t want your name to advertise any false claims to consumers. Head to the Secretary of State’s office to ensure your name you want is appropriate and up for grabs.
Mountains of Paperwork
When it comes to paperwork, the government doesn’t play around. Expect to fill out tons of forms when you decide to incorporate your company. Every state has its own Articles of Incorporation that you must complete before granting your request. You’ll need to provide the following information:
- Company name
- Company address
- Purpose of corporation
- Names of all associated parties
- Signature of incorporator
Failing to include all the requested information is grounds for the state to delay or deny your application. Always double-check your work to make sure you don’t leave out any pertinent details. It’s best to have a professional look over your paperwork to ensure you didn’t make any careless errors.
Let Bylaws Be Bylaws
Have you considered bylaws for your company? All corporations need them. You need to draft a set of bylaws to detail the organizational structure off your business. These rules should state how the board of directors operates and the responsibilities of shareholders. The bylaws protect your company by ensuring you run your business in accordance with the law.
Don’t take this step lightly. Once the bylaws are in place, you cannot make changes without calling a board meeting and voting on the proposed amendments. Have an expert review your bylaws to ensure you didn’t forget any critical information. The Secretary of State will not approve your incorporation application until they receive and accept the bylaws.
Take the Stress Out of Incorporating
Incorporating is a time-consuming process; however, it’s also one that can tremendously benefit your company. The advantages of becoming a corporation greatly outweigh the hassle of filling out some paperwork. However, you shouldn’t begin this process without proper guidance.
Incompass Tax, Estate & Business Solutions knows what it takes to apply for LLC or corporation status. Our experts have nearly three decades of experience, and we can help take the stress out of this tedious process. Get in touch with our office if you’re ready to learn how to incorporate your company the right way.