If you have grand ambitions for your business, it all starts with setting a solid foundation. By relying on your years of professional expertise and know-how, you can cultivate a great idea for a service or product that meets the demands of the marketplace. Of course, that idea will only take you so far, and at a certain point, you are going to have to deploy some elbow grease. Getting a business up and running–and, ideally, successfully–is no minor accomplishment, and in the nascent days of your enterprise you probably will not have much free time on your hands. You will find yourself tasked with a lot of logistical work like hiring employees, leasing office space, and setting up payroll. If you are building your business with an ambitious eye toward the future, though, you may also want to file articles of incorporation during this time. If forming an S- or C-corporation is right for your organization, you can use our website to file a corporate application form online.
So, at this point, if you are new to entrepreneurship, you may find yourself wondering: just what is a corporation? Well, in a nutshell, a corporation is a way in which you can legally structure a business. It is worth noting that there are other ways of doing this: many opt to form limited liability companies (LLCs), for example. When you create a corporation, you are establishing your business as its own legal entity. This means that your corporation will retain many of the same rights as an individual in that it can buy and sell property, borrow or lend money, and hire and terminate employees. A key advantage to creating a corporation is that it allows you to issue stock. This means you can sell fractional shares of ownership in your business to outside investors. This can be a very effective way to raise quick capital, which can help you hire a bigger staff or expand your offerings.
Getting to Know the Corporate Application Form
Aside from the ability to sell shares, a corporation can come with other benefits as well. Certain corporate modes will give you limited liability protection. In the event that your corporation suddenly faces bankruptcy or a lawsuit, you and the other incorporators will be able to guard your personal assets against legal action. You may also be able to receive “pass-through” status with the Internal Revenue Service (IRS). This means you can pass losses and gains generated by your business to your incorporators before they are taxed.
Different states will have different guidelines on how to complete articles of incorporation. Nearly universally, though, you will need to include the name and address of your business, those of its incorporators and registered agent, and how many shares you plan to make available.
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At Corporation Center, we have fillable web forms for all of your business structure needs in all 50 states. To discover more about how we can help you, spend a few minutes reading our helpful Frequently Asked Questions page.