If you are thinking of starting a business it may be in your best interests to learn how to incorporate. Incorporating your business is a fairly simple task and the first steps can be completed within a few hours. It is essential that you make sure that stock is owned solely by you, your associates and family members and not by the public.
The first major point to consider is where you are going to incorporate your company. It is recommended that you choose the state that you do most of your business in; you can incorporate out of that state but you still have to register in your home state regardless. Delaware is a good state to register in as it is very business orientated and has laws in place to protect corporations.
Once you have chosen a state you need to decide on a company name. A search on the internet will determine if the name you like is available. You need to then fill in the paperwork to register the name before you even fill out any registration forms relating to your corporation.
A Registered Agent needs to be chosen and they will be responsible for registering the corporation in your chosen state. The agent can be an attorney, yourself, a family member or a company that specializes in this process. The agent must live and work in the state you are intending to register in.
The pre-printed registration forms can be obtained from the state’s corporate filing office and then be filled out. The forms need to be returned with a registration fee to the appropriate office. Details on the form will include the purpose of your company, the main trading address of the business and the amount and type of shares of stocks. Other information, known as Corporate Bylaws, will need to be completed detailing issues such as annual meetings for shareholders. This information does not require to be filed.
Also in the process of how to incorporate your business is the appointment of a board of directors. These people will oversee the running of your company and make sure that the shareholders best interests are met. You will also need to apply for an EIN (Employee Identification Number) before your corporation will be considered legal. An EIN is more or less needed for IRS purposes. Most banks will also need the EIN to open a business account for you.
To fulfill your dreams in starting a business you may need a start up business loan. For this you will need to prepare an in-depth business plan to show the bank that you are a serious contender in the market you want to enter. If anyone in your company has had experience in the industry you want to join, make this clear to the bank. This will give them some confidence in allowing you funds as you know a bit about the market already. Collateral such as private property may be needed in case of anything going wrong. Your business plan should also account for where the money for the start up business loan will be going.
Learning how to incorporate a business can be done with a number of self-help books. If you find the prospect of learning how to incorporate your company daunting, you can employ the help of an attorney of specialist businesses to guide you.