How to Incorporate a Small Business
Starting a small business is always exciting but it can also be very daunting if you do not know how to incorporate a small business. Many businesses that are successful have a unique name that is easy to remember. It s important that you come up with a good name that will help your business to grow. There are many different ways that you can incorporate a small business.
incorporation process for a corporation. When learning how to incorporate a small business the most difficult task is coming up with a good corporation name. You need to select a company name that will represent your business. Check State Board of License or Registry Website to see if your chosen company name is registered.
Writing a Articles of Organization for your business. The next step in how to incorporate a small business is to write an Articles of Organization for your corporation. This consists of all of the information about your corporation. It includes the name, date of birth, business name and address. You also have the option to add a cover sheet listing all members of the corporation.
Designating the officers of your corporation. Once you have written your Articles of Organization you will need to determine how to incorporate a small business. Once the officers of your corporation have been selected, you will need to take the steps to start the paperwork to incorporate your business. There are specific forms that must be completed and filed with the appropriate state.
Formulating a limited liability corporation. A limited liability corporation is one of the easiest ways of incorporating your business structure. The main benefit of this type of corporation is that it allows you to separate your personal assets from those of your corporation. A limited liability corporation does not have the same requirements as other types of corporations when it comes to filing taxes. When you form one, your assets will be those of the corporation only. You are still required to pay taxes on your personal income and dividends.
Holding a board meeting. The next step in how to incorporate a small business is to hold your first board meeting. This is an informal meeting of all the shareholders. The purpose of this board meeting is to discuss common business matters such as how the company plans on expanding and developing its products and services.
Determining how many shareholders you will have is important when you start incorporating a small business. A small corporation will only have one shareholder, therefore, it is important to make sure you include all the shareholders when you do your initial paperwork. If one shareholder is a relative or friend, you may choose to name him or her the president or vice president.
Creating corporate bylaws. Once the board has reviewed and approved your books of incorporation, you will next need to create your corporate bylaws. This includes the bylaws that govern how the business will be run and who will be in charge of how the business gets started and how it runs. Every piece of information you put on your corporate bylaws website is part of public record and can be accessed by anyone who is looking. By including every important piece of information you can help yourself ensure the success of your business.
Developing your business structure. Once you have incorporated, it is important to choose your business structure. The most popular option is a limited liability corporation, otherwise known as LLC. Other options are a partnership, sole proprietorship, and corporation.
Selecting a registered agent. You are now officially an owner of your corporation. This is where it gets complicated, because you want to keep your personal assets in the hands of someone you trust. To avoid confusion, you will need to select a registered agent with the same business name as the corporation, and confirm that this person is at least 18 years old, is a US citizen, and has a permanent address.
How to incorporate a small business can be confusing, especially if you are just getting started. Once you know exactly what you need to incorporate and what the process entails, you can move on with the rest of your life. It is really the best way for you to create a secure financial future.