So you’ve decided to start a corporation? Congratulations! This is the first step to a wonderful new career in which you make all the decisions and reap all the benefits. Starting a new business is an exciting and life-changing decision, and new corporation owners often have questions.
First of all, have no fear! There are scores of resources at your disposal that can help you to survive the obstacles that come part-and-parcel with the incorporation process. The most important thing is to keep your mind focused on your goal, and to take each problem or decision as it arises. Following a guideline to incorporation can expedite the process and make your life much easier.
Here are the seven simple steps to incorporation that you can use to expedite the process. Remember that you can always turn to an advisor or authority on the subject for additional information. Visit http://www.incparadise.com to learn more about it.
Step One: Make a Name for Yourself
Your first step is to choose the name and corporate address for your corporation. This can simply be your own name and your home address, or it can be much more complicated. Depending on the nature of your business, you will have to choose a name that adequately describes your products and/or services, and which identifies your corporation to potential customers.
Step Two: Pick Your State
Even if you will be operating in multiple areas of the world, you will need a central headquarters location, and this is the state in which you will incorporate. It is much easier to incorporate in the state in which you live than to try and complete this process out of state, but the decision is yours.
Step Three: Select the Type of Corporation
The next step is to figure out what type of corporation will work best for your business. You can incorporate as a C-Corporation, an S-Corporation or an LLC (Limited Liability Corporation). Each of these options has pros and cons based upon the type of business you will run.
Step Four: Choose Your Company Directors
You will have to file the directors of your corporation and their positions with the Articles of Incorporation and By-Laws. For this reason, you should ideally have already chosen the directors before you begin the incorporation process. Make sure that the directors you choose are reliable, trustworthy and possessing of common business sense to avoid pitfalls in the future.
Step Five: Choose Type of Share
Your options when it comes to shares include common and preferred stock, which will ultimately be decided based on the benefits to your corporation. Speak with an expert in this area before making a decision.
Step Six: Obtain Your Certificate of Incorporation
Certificates of Incorporation are available from your local business retailer or state office. This is the point at which your corporation becomes solidified, and is the most important step in forming your corporation.
Step Seven: Process & File
Your last step will be to process your application (which can be done through an attorney or using a do-it-yourself kit) and filing it with a Registered Agent.