How to Incorporate a Small Business

Video Transcript

"Incorporating a business, basically means, to start a corporation. To incorporate a small business in your state, you first need to contact your Secretary of States Office. A new name must be distinguishable from all other names filed with your Secretary of States Office, so you should definitely check to make sure that the business name is available. To do that, visit your Secretary of States Office, and ask them about business name availability, and from there they should be able to guide you in the right direction. After you've determined that your name is available, and it's permissible by law, a charter must be filed with your state. A charter, also know as, articles of incorporation, set forth the items required by law for a group of individuals, or an individual to form a corporation. Once you have determined that your name is available in your state, then to file your articles of organization, you must satisfy these three requirements; first it has to have a name that it is permissible by law, the second piece, is that it must discuss the number of shares that you offer, the third is the initial registered office of the corporation, the fourth thing that you have to include in your articles, is the name, the street, and the address of all the individuals who are incorporators of this business. The fifth thing that you must do in your articles, is include the address of the business. The sixth thing that you must include, is what the types of shares of stocks that you're going to offer, and then the seventh is, a statement that says that this is a for profit corporation. And those basically are the seven defining things that your article must include. So these are the seven things that you have to include in your articles. The cost to file a charter, or your articles, varies by states. So please be sure to check. Also these seven are specific to the State of Tennessee, so there may be some things that you add or delete, for your particular state. And further, it is always good to consult with an attorney, or a CPA, before filing your articles with your state."