Is your business poised to experience a booming period of growth? If so, congratulations are in order. Starting your own business is tough–starting a business that flourishes is even tougher. After laying the groundwork of successfully creating a business plan, hiring a rockstar team, and bringing your product or service to market, seeing your idea take-off can be uniquely fulfilling. Of course, with that level of success comes new challenges as well. You may need to expand your business and move to a new storefront or office space. You could also be in a position to hire more employees or boost your marketing budget. While these are exciting developments, they also require money, and if you are looking for a quick influx of capital, you might find that it is time to form a corporation.
When an average person hears the word “corporation”, they probably think of massive, multinational brands like Amazon or Apple. In truth, it is not uncommon for a smaller organization to draft articles of incorporation, and the reason is that it affords you the ability to issue stock, which can generate quick cash. A corporation is in contrast in this regard when compared to, say, a Limited Liability Company (LLC), which can face difficulties in raising outside investment.
While there are certainly trade-offs, selling stock lets outside parties invest in your company without burdensome changes to your ownership or management structure. If someone wishes to invest in an LLC, they will rightfully want to become a member so as to have an ownership stake in the business, which can cause a paperwork headache. Read on to learn more about how you can form a corporation online with our help.
How to Form a Corporation: Getting Started
The first thing to know about forming a corporation is that each state is going to have individual rules and regulations surrounding eligibility. You can get a better sense of these limitations by contacting your Secretary of State’s office or doing a bit of research online. As a general rule of thumb, however, you will need to start by choosing a unique name for your business–in other words, it cannot match or be too similar to other corporations registered in your state. Typically, your name will need to include a corporate designation, such as “Co.” or “Inc.”.
At the outset, you may also want to consider appointing your board of directors. These individuals–which can change after your initial board meeting–will be tasked with attending corporate meetings and managing the day-to-day affairs of the corporation. As the Articles of Incorporation, you eventually file with the state will require the names of your directors, it is good to have an idea of this group early on.
Submitting Your Articles of Incorporation
With a name chosen and a board of directors in place, you can then move on to completing the paperwork required to incorporate your business. In most states, this document is referred to as “Articles of Incorporation”, and by using our convenient web form, you can submit yours online. This document should include some basic information about your business, such as its name and address. You may also need to provide a statement of purpose for your organization. The number of shares you plan to issue should also be noted, along with their respective classes.
You should also list the contact information for your registered agent. While some corporations opt to use in-house legal counsel for this role, that is not typically required. The duty of the registered agent is to receive all services of legal processes on behalf of your business. They can also be tasked with handling all government tax correspondence.
Creating Your Corporate Bylaws and More
With your articles of incorporation submitted and processed, it may be a good idea to start drafting your corporate bylaws. While this is not often required by law, it can greatly assist you in running your corporation in a more efficient fashion. Your corporate bylaws can detail a meeting schedule, assign record-keeping responsibilities, and lay out a formal management structure–really, what they include is up to you.
You can also now hold your first board meeting. In this meeting, you can appoint corporate officers, make changes to your roster of directors, and authorize the issuance of stock. You will also want to make sure that your business is registered with the Internal Revenue Service (IRS), and you may wish to obtain any business permits or licenses you need in your state.
File Your Forms Online Today
At Corporation Center, we can help you draft your Articles of Incorporation online. We also have web forms for creating Limited Liability Companies, Limited Liability Partnerships, and more. To learn more about how we can help you and your business, visit our Frequently Asked Questions page. You can also contact one of our customer service representatives by email or phone with any questions you may have.