How To Form A Corporation The Right Way
When you form a business, whether it's a small or large one, it's a good idea for you to think about the legalities of having a business. Making sure that you are legally protected is essential.
The worst thing you can do is fail to separate your business assets from your personal assets. Failure to do this can result in a loss of finances, especially if you are sued by disgruntled customers. Here's a look at how you can form a corporation and legally protect your business.
Naming Your Business
One of the first steps you need to take is to decide on the name of your business. When you decide on a name for your business make sure that no one has already trademarked it. You can check if your name is legally available by checking with the secretary of state office where you live.
Name Your Directors
Naming your directors is an important step you need to take when you decide to form a corporation. You can name yourself as one of the directors and appoint others as well. Directors govern corporations and manage their business affairs of it.
File the Paperwork
One of the most important steps you will need to take is to fill out an article of incorporation. Filing this is what will establish your corporation as a legal entity. The articles of incorporation will include the name as well as the address of your corporation. It will also include the type of business the corporation carries out.
Create Bylaws for Your Company
Every organization needs to have rules. You must create the right company bylaws to govern things such as how stocks will be issued and the number of directors that will be required for the company.
You will also need to do record-keeping of any company meetings, so you will need to have procedures to govern that. Writing bylaws is something that needs to be done right. It's a good idea to consult a lawyer for this part of the process.
Licensing and Permit
You will need to make sure that your business has the required licensing and permits to operate. The type of licensing and permits you will need is determined by where you live and the laws that are in place.
Forming your business into a corporation is in your best interest. Make sure that you carefully look at all the points that have been discussed here so that you can form your corporation without a lot of hassle.
If you are looking into forming a corporation, contact an experienced business owner.