Checklist to use when forming a corporation – INC 101
Incorporation is a big step and it helps to have support from a knowledgeable Incorporation Service Company. Most times you can complete the entire process within a few short weeks and many times quicker. If you’re thinking about forming a corporation or LLC, the checklist below can help you be well-prepared for the process.
Decide where to incorporate your business:
You may choose the state in which you are located, or one of the popular states such as Delaware. About half of all U.S. corporations are incorporated in Delaware because of its amenable business tax climate.
Determine your corporate structure:
Decide whether you will form a corporation or an LLC. Identify who will be the major directors and management of your corporation, and be sure you have each individual’s contact information on record.
Choose who will act as the registered agent:
The registered agent provides the official address within the state of incorporation and receives official state mail as well as Service of Process, which is a legal summons, on behalf of the company. Your business will need to identify this party annually and the registered agent may be changed at any time.
Incorporate your business:
Have the Certificate of Incorporation/Articles of Incorporation prepared and filed with the state in which you choose to incorporate.
Secure a Federal Employer Identification Number (EIN):
You will need an EIN for your company in order to open a company bank account and for federal tax filing purposes. However, you should wait until your corporation’s name has been approved to apply for this number.
File local regulatory obligations:
These include state or city business licenses, permits and zoning laws.
Establish a corporate bank account:
You will need your filed Certificate of Incorporation and EIN number.
Secure business insurance:
Unfortunately, accidents, natural disasters and lawsuits are a part of doing business. Therefore, business insurance is very important to obtain. The insurance protects you from the unexpected costs of running a business. Information on insurance recommended by the SBA can be found here.
Develop corporate bylaws, a shareholder agreement and a minute book for organization meetings:
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