If you are planning to start a new business, incorporating might be in your business’s best interests. The act of incorporating creates a new legal entity and effectively removes personal liability from the founding members of the business in most instances. There are several forms of incorporation such as: public corporations, “closely held” or S-Corporations, and limited liability corporations (LLC’s). Each form has its own set of advantages and disadvantages, including tax implications. Ideally, you should consult with an attorney and/or an accountant to determine which form will be most advantageous for your business. In addition to incorporating your new business, you will need capital to get your business up and running. In the past, business credit and loans were fairly easy to obtain. However, since the economic downturn that began in 2007, lines of credit have become much more challenging to obtain. This does not mean that it cannot be done, it merely means that financial institutions have tightened their restrictions on the issuance of large loans and lines of credit in an effort to reduce their exposure to financial risk.
ITEMS YOU WILL NEED
Promoters or Directors
Attorney (recommended, but not necessary)
Articles of Incorporation
State Filing Fee
Business Loan Application
Incorporate Your Business
Find someone to act as a promoter or director for the business. Promoters and directors are responsible for business affairs before incorporation takes place. They have the power to make major decisions on behalf of the business and will act as a representative during the incorporation process. It is possible to have more than one promoter and this person is usually chosen because of his or her role in the founding of the business.
Research your state’s corporate filing requirements and gather required forms or consult a business law attorney. Filing requirements are set by state law. This means that each state has different requirements and procedures. You can perform an online search to get you started. Simply use a search engine to look for the search the terms “incorporation statutes in (your state)”. Typically, your state’s Department of State will be able to provide you with the necessary information and forms. Another avenue of information is your state representative or senator. They typically carry information packets for new businesses that include the forms that are necessary for corporate filing in your state.
Choose a name for you business that complies with your state’s incorporation requirements. You will not be able to use a corporate identity that is already being used by another corporation within the state due to trademark regulations. Your state’s Department of State should have a database containing all corporations on file in your state and should be able to let you know if your corporate name is unique. Also, your corporate name must include a suffix that lets the rest of the world know that your business is incorporated such as: Inc., Corp., LLC, Ltd., etc.
Fill out “articles of incorporation” for your state. You should have acquired all necessary forms in step two above. Complete the necessary information which may consist of your business’s name and principal address, the basic purpose of the business, the names and addresses of your initial promoters or directors, and what will happen in the event that the corporation dissolves.
File your “articles of incorporation” with your state. When all forms are complete, you should mail or drop off all necessary forms at your state’s Department of State or designated filing office. You will also be required to pay a filing fee. This fee depends upon your state’s requirements. Your incorporation request may take several weeks to process. If you have provided the necessary information and a unique corporate name, you should receive and information packet from the state that includes a record or certificate of incorporation.
Need Help Incorporating your business?
Economy – Basic Incorporation Package $99.00 + state fee
Preliminary clearance of your corporation’s name
Filing of Articles of Incorporation
Personalized bylaws, including provisions protecting officers and directors from liability
Resolutions of the first meeting of the Board of Directors
Standard – Basic Incorporation Package + Popular Options $239.00 + state fee
Includes everything in the Economy package plus:
Deluxe Corporate Kit embossed with your company name
Official corporate seal
20 custom stock certificates with stock transfer ledger
Medical expense plan forms
PRWeb Online Visibility Package
Express Gold – All Inclusive Rush Package. $369.00 + state fee
Includes everything in the Standard package plus:
Priority Rush service: (7-10 business days)
Over 40 essential business forms on CD-ROM, including employment and independent contractor agreements
Federal Tax ID (EIN) application
S Corporation election at your option
Two-day delivery of final package
Fully Functional Peachtree accounting software
Contact Go2Capital today to get started with these services. 888-285-8707