After considering the different business options you may have come to the conclusion that you would like to form a corporation. Each state has specific laws and expectations that need to be met for developing a corporation in that particular state. You will need to check with your state to determine any specific laws, rules, or regulations for your state. Although, there are several basic things you will need to do to form a corporation.
The first thing you need to do is choose a name. You will need to contact your state’s corporation division to determine specific rules for choosing a name within the state you wish to form your corporation. Some of the most common issues that need to be considered when choosing a name include: The name you choose cannot be the same as another corporation already on file. The name must list your corporation’s designator such as “Incorporated,” “Corporated,” or “Limited” or an abbreviation of the same. You may not choose a name that suggests an affiliation with a government office or restricted company such as “bank,” “cooperative,” “federal,” etc. if it is not actually affiliated with one of these organizations.
Once you have chosen your name and it has met the criteria in your state, you much appoint directors for your corporation. The directors are the ones who make the major financial and policy decisions for the corporation. Again, dependent on the laws of the state in which your corporation is formed, you may be able to assign one director or may be required to have more. It is important to check your state regulations to determine this.
The next step is filing “articles of incorporation” with your state’s corporate filing office. You are now well on your way to getting your corporation fully developed. Now it is time to hold your first meeting of the Board of Directors, issue stock, and obtain your licenses and permits.