Starting Corporation

If you ordered through the many types of business structures and decided to form a company, you are faced with a list of important – tasks – but manageable. Here’s what you need to do:

Choose an available name of the company that meets the standards of the company in your state.
Appoint the first directors of the company.
Submit official documents, usually called “social pact” and pay fees ranging from $ 100 to $ 800, depending on the state in which they are incorporated.
Create “statutes” which set standards of your business performance company.
Hold the first meeting of the board.
Issue share certificates to the original owners (shareholders) of the company.
Get all the licenses and permits required for your business.
For specific rules of each state in the formation of a company, refer to the state 50 to form a society.

Choosing a business name

The name of your business must comply with the rules of division of the state of society. You should contact your state office for specific rules, but the following general guidelines apply:

The name can not be the same as the name of another company in the archives of the headquarters.
The name must end with a designator of the company, as “Corporation”, “Incorporated”, “Limited” or the abbreviation of one of these words (Corp., Inc. or Ltd.).
The name can not contain certain words that suggest an association with the federal government or a restricted type of business, such as banking, credit, federal, national union, the United States, or reserve.
business office in your state can tell you how to determine if the proposed name is available for use. Often for a small fee, you can reserve your company name for a short period of time to present its statutes.

In addition to corporate naming rules of your meeting state, you must ensure that your name does not violate the trademark of another company. For more information on trademark law and general advice on choosing the company name, see the article by Nolo choose a winning name for your business.

Once you have found a legal name and available, generally not necessary to remove the company name with your state. When you file your articles, your business name will be registered automatically.

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However, if you sell your products or services under a different name, you must file a return or “dummy” “supposed” with the name of the state or county where the headquarters of his company. For more information, see article Nolo register your business name.

The appointment of directors

Directors make important political and financial decisions of the company. For example, the directors authorizing the issue of shares appoint the officers of the company and to fix their salaries and approving loans and society. Directors are normally appointed by the original owners (shareholders) of the company before opening for business. Often, owners are simply designated as managers, but managers should not be owners.

Most states allow a company to have a unique address, regardless of the number of owners. In other states, a company may have a director only if you have one of the owners; a company with two owners must have at least two directors and a company with three or more owners must have three or more directors.

Presentation of Association

After choosing a name for your company and appointed its directors must prepare and “social pact” with the corporate office files file your state. Generally, this is the department or office of the Secretary of State, in the capital of your state. While most states use the term “social pact” to describe the basic document creating the company, some states use other terms, such as “certificate of incorporation” or “letter”.

No state requires a company to have more than one owner. For companies with a single owner, sole proprietor simply prepares, signs, and the constitution writing files itself. For co-ownership companies, owners can sign either all elements or designate a person to sign. Articles signature called the “founder” or “promoter”.

The articles should not be long or complex. In fact, you can usually prepare statutes in minutes by filling out a form provided by the corporate office to file your state. Typically, the articles must only specify some basic details about your company, such as your name, address of the main office, and sometimes the names of its directors.

You probably also indicate the name and address of a person – usually a director. – Who will act as “authorized agent” of your company or “agent for service” This person is a folder so that members of the public know how to contact the company – for example if they want to continue or involve society in the opposite case?

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The regulations are the internal rules regarding trading overnight a company, such as when and where the directors of a holding company and the shareholders and that the shareholders and the requirements of the voting directors are. To create the articles, you can follow the instructions of a self-help resource or hire a lawyer in your state to write them for you. In general, laws are passed by the directors of the company, at its first meeting of the Board of Directors.

Exchange plan property with shareholders

a shareholders’ agreement allows owners of a small business to decide and plan what will happen when the owner retires, dies, becomes disabled or leave the company to pursue other interests. For more information, see article below No map changes in ownership of the Company.

Holding a first meeting of the Board

After the owners appoint the directors of files, status, and create, the directors should have a meeting of the initial board of directors to manage corporate formalities and make important decisions. At this meeting, the directors are usually:

  • impose taxes or company’s financial year
  • designate officers
  • adopt regulations
  • authorize the issuance of shares and
  • adopt a form of a certificate and official seal of the company.
  • Also, if the company will be an S corporation, the directors must approve the election of the state company. (For more information on whether your company should adopt the S-Crown corporation, see S Corporation Facts.)

the issue of shares

You should not do business as a company until it has issued shares. the share issue officially divided into business units. It is also a requirement of doing business as a company – and you have to act like a corporation at any time to be entitled to legal protections offered by the corporate state.

the registry values

The issue of securities can be complicated; be in accordance with laws on securities. This means that large companies must register their offers of shares with the Federal Securities Commission (SEC) and state securities agency. Registration takes time and usually involves legal fees and additional accounting.

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Securities Registry Exceptions

Fortunately, most small businesses are eligible for exemptions from the registration of securities. For example, the SEC rules do not require a company to record a “private placement” – namely, the sale does not advertise for a limited number of people (usually 35 or less) or that can reasonably be called to take care of themselves because of their earning net worth. And most states have adopted their own versions of this SEC exemption. In short, if your company will issue shares to a small number of people (usually ten or less) to actively participate in business management, you will definitely qualify for exemptions to the registration of securities.

Rules of passive shareholders

Expert If you sell shares to passive investors (people who do not participate in company management), the application of federal and state securities is complicated. Get help the small business good lawyer.

For more information on the laws and federal exemptions titles, visit the website of the SEC at www.sec.gov. For more information on the exemption rules in your state, go to the Secretary of State’s website. (You can find links to the website of each state on the website of the National Association of Secretaries of State, www.nass.org.)

The issuance of shares

When you are ready to issue the actual actions, you must document the following:

the names of the original shareholders
the number of shares of each shareholder to buy, and
how each of the shareholders will pay for their actions.
Finally, you need to prepare and issue certificates. In some states, you may also have to file a “Notice of stock trading” or similar form with the office of state enterprises.

Obtaining licenses and permits

After submitting your articles created its statutes, its first director’s meeting was held, and shares issued, which is almost ready to go. But still needed to obtain necessary permits and someone needs to start a new business such as a business license (also known as a tax registration certificate) licenses. You can also get an identification number of the employer to the IRS, your state license of a seller or a zoning permit from your local planning board. For more information, see the permissions for your field of No licenses and site.