Things You'll Need:
- Place
- Name
- Owner
- Registration
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Step 1
PlaceStart by understanding that it usually makes the most sense to stay put and incorporate in the state where you do most of your business. If you form an out-of-state corporation, you will end up having to qualify to do business in your home state. You also will have to pay any state corporate income taxes levied in your home state for income earned there.
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Step 2
OwnerIncorporating is easy as long as you and close associates and family members will own all stock and none will be sold to the public.
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Step 3
Name CheckYou need to check with your state's corporate filing office (usually either the Secretary of State or Corporations Commissioner) and federal and state trademark registers to be sure the name you want to use is available.
A corporate name is generally made up of 3 parts: "Distinctive element", "Descriptive element", and a legal ending. All corporations must have a distinctive element and (in most filing jurisdictions) a legal ending to their names. Some corporations choose not to have a descriptive element.
For Example: In the name "Tiger Computers Inc." the word "Tiger" is the distinctive element; the word "Computers" is the descriptive element; and the "Inc." is the legal ending. -
Step 4
RegistrationYou then fill in blanks in a preprinted form (available from commercial publishers or your state's corporate filing office) listing the purpose of your corporation, its principal place of business and the number and type of shares of stock. You'll file these documents with the appropriate office, along with a registration fee which will usually be between $200 and $1,000, depending on the state.
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Step 5
Corporate BylawsYou'll also need to complete (but not file) Corporate Bylaws. These will outline a number of important corporate housekeeping details such as when annual shareholder meetings will be held, who can vote and the manner in which shareholders will be notified if there is need for an additional “special" meeting.
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Step 6
Reporting after IncorporationAssuming your corporation has not sold stock to the public, conducting corporate business is remarkably straightforward and uncomplicated. Often it amounts to little more than recording key corporate decisions (for example, borrowing money or buying real estate) and holding an annual meeting. Even these formalities can often be done by written agreement and don't usually necessitate a face-to-face meeting.















