Things You'll Need:
- A proper title for your corporate
- A proper address (not an P.O. Box)
- A registered agent
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Step 1
You must file with the Secretary of State what is known as Articles of Incorporation. These Articles must contain: name and addresses of one or more incorporators (i.e., the attorney forming the corporation for you, or a promoter – you or the party interested in the formation of the corporation).
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Step 2
Ensure that the articles list a proper name for the corporation entity. Many states have very specific rules about the name a corporation can use. Generally, the name must contain the word “corporation”, “incorporated”, “company”, “limited”, or the abbreviation “corp.”, “co.”, “Inc.” or “ltd.” However, the name cannot contain the words “bank”, “banking”, “trust”, “cooperative”, or any combination of “industrial” and “loan” or any two or more of the words “building”, “savings”, “loan”, “home”, “assn.”, or “society”; basically any word that could create confusion in the market place.
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Step 3
You must include the name and address of a registered agent. This is a requirement in case the corporation needs to be served service of process (this is perhaps one of the most important steps when learning how to form a corporation the proper way). The address must be a street address and it cannot be a P.O. Box. Also, you must list any lawful purpose the corporation seeks to achieve (some states allow for very general statements like: for the purpose of engaging in lawful business). Some others require you to name the scope of your business (i.e., contracting or web design).
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Step 4
The fourth step in how to form a corporation properly is to name the number of shares of stock issued (and classes of stock, if your corporation will have shareholders with and without voting rights, for example). You should also list any provisions and/or procedures you would like your corporation to follow if they are not consistent with the enacted legislation in your state. Remember, directors are typically named in the articles of incorporation, but this is usually not a requirement.
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Step 5
The articles of incorporation (containing the foregoing information and whatever else your state requires), must then be filed with Secretary of State. This would become conclusive evidence of compliance with all corporate formalities and, in most states, the date of filing will become the official date when the corporation was “born.” This is important because before this date (if filling is proper), a promoter(s) will be personally liable and not protected under the corporate umbrella. In most states, if the filing is proper, but the Secretary of State does not stamp the corporation into existence (does not officially accept the paperwork), the date of corporate formation relates back to the date of proper filing.
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Step 6
After you have filed all articles of incorporation, fulfilled all the requirements, and the Secretary of State (or her office) has stamped your corporation into formation, your corporation is now ready to do business. Remember, business entered prior to the filing (and in some states prior to the acceptance by the Secretary of State) will still be open to personal liability. There you have them, 6 steps on how to form a corporation.
