How to Create a Pre-Incorporation Agreement

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By eHow Contributing Writer

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A pre-incorporation agreement is a key component to the incorporation process for any business. This is true especially for small businesses with multiple shareholders who are active in the daily operations of the business. Use these steps to create a solid, legal and fair pre-incorporation agreement for your business.

Difficulty: Moderately Challenging

Instructions

Step 1

Hold a shareholders' meeting to create the pre-incorporation agreement. Collect the required paperwork for your state. This can be obtained from the Secretary of State's office.
Step 2

Include all of the shareholders names in the documents. Shareholders are essentially the same as the owners in a standard business.
Step 3

Mark which state you are incorporating under. Be sure that all shareholders are clear on the laws in your state surrounding incorporation.
Step 4

Decide the name of the new company and insert that information into the appropriate areas on the forms.
Step 5

Describe the corporate purpose in a few short bullet points. Use broad enough terms to cover potential growth and transition of your business as it grows.
Step 6

Consider the options for corporate stock and decide how it will be split. This will include the number of stocks that will be issued in the initial offering, not total shares offered.