How To Incorporate Your Business
The Incorporation Process Explained
Whether you plan to incorporate your business on your own or utilize a lawyer, it’s best to know a bit about the process. Below are the basic steps needed to incorporate your business. Either route you choose, Corp-Kit NW has everything you need to give your business the legal protection that comes with incorporating or forming an LLC. Laws vary somewhat from state to state, so the specifics of (for example) incorporating in Montana may be slightly different from Florida but the same general process applies.
Choose a Corporate Name
Every corporation or LLC must have a unique name. State laws prevent companies from registering “deceptively similar” names to existing companies. Contact the Secretary of State and, in most states, you can check name availability on line or by telephone. Generally, you can reserve a name by paying a small fee to the Secretary of State while you prepare and submit your Articles of Incorporation or Formation (LLC).
Select a Corporation Type
- A “C” corporation: the corporation is a taxable entity. Unlimited shares.
- An “S” corporation: not taxable, profit or loss drops through to the shareholders. Shareholders limited to 35.
- A “PC”: a professional corporation for doctors, attorneys, etc.
- An “LLC”: limited liability companies may be either member or manager managed. Profit or loss drops through to the members.
Look at each entity to see which structure best suits your needs. Ask your accountant for advice.
What will Corp Kit will provide?
If needed Corp Kit will provide the proper forms by mail along with instructions, the state fee required and the address for mailing to your Secretary of State. When the “filed” articles are returned to you, mail or fax a copy to us and your kit will be sent same day UPS Ground. One of the main things these documents do is to define who is incorporating and how much stock (and what kind) the incorporators are getting. If you have already obtained and filed your Articles, your kit will be sent the same day you order.
Prepare corporate by-laws or operating agreement (LLC)
These are completed after you receive your filed articles back from the state. All of the necessary forms are included in our kits.
Shareholders meetings, directors meetings, minutes.
The kits we provide include all of the forms you will require to maintain your company’s records on a continuing basis. You will record the activities and transactions of your company on the proper forms. Our “Aid Sheet” will describe the process. The essence of running a corporation or LLC is the keeping of good records.
You will issue stock to shareholders (corporation) or membership certificates to members (LLC) and record the issuance in the Stock Transfer Ledger or Membership Roll booklets that are included in our kits.
Our team of experts at Corp-Kit NW can help with the process. We invite you to check out the quality products we offer that will help you get off to the right start in forming your corporation or limited liability company.