How to Form a Corporation

Instructions

Difficulty: Easy

Form a Corporation to Protect Yourself and Your Business

1. Call or write the secretary of state in the state in which you wish to incorporate, and inquire about requirements for incorporating there.
2. Obtain a certificate of incorporation from the secretary of state in the chosen state.
3. Choose a name for the corporation.
4. Decide, at least tentatively, other details of the corporation. For example, who will act as directors? Who will organize and regiser the company? What kind of stock will you issue (preferred or common), and where will the main office be?
5. Fill out the certificate of incorporation and attach a money order or certified check covering the filing fees. If you plan to do business under a name different from that of the corporation, you might have to file a trade-name affidavit.
6. Await approval. If your filing is rejected, you will get a letter explaining why. Correct the deficiencies and submit the filing again.
7. Hold the first shareholders meeting as soon as possible after the filing is approved. At the organizational meeting, shareholders might be asked to select officers, adopt bylaws, approve the lease of office space, approve medical-benefits plan, and make other key decisions.
8. Obtain a corporate seal and letterhead. Some companies sell "corporation startup kits" that contain much of the paraphernalia you will need to be official.

Tips & Warnings

• Many local libraries offer books and brochures that explain corporation requirements for individual states. Check it out before you spend money on an attorney or other expert. You might be able to do much of the work yourself.