How to Create a Corporation?

By The Law Office of Yoel Molina.
 
You have a list of significant—yet doable—tasks to complete if you have opted to form a corporation after weighing the various business structure options. This is what you need to do:

1. Pick a readily available company name that fits with the corporation laws of your state.
2. Select your company's first set of directors.
3. Depending on the state where you incorporate, you must file official documents, sometimes referred to as "articles of incorporation," and pay a filing cost that ranges from $100 to $800.
4. Draft corporate bylaws that specify how your company will be run.
5. Hold the board of directors' first meeting.
6. Hand out stock certificates to the company's founding stockholders.
7. Acquire any licenses and permits needed for your company.
 
How to Choose a Corporate Name?
Your corporation's name must abide by the regulations of your state's corporation division. The following guidelines typically apply, however you should check with your state's office for more details:

-           The name cannot match another corporation's name that is registered with the corporation's office.
-           The last letter of the name must be a corporate designator, such as "Corporation," "Incorporated," "Limited," or an acronym of one of these phrases (Corp., Inc., or Ltd.).
-           Certain phrases, such as Bank, Cooperative, Federal, National, United States, or Reserve, that imply a connection with the federal government or a specific type of business is prohibited from being used in the name.

If you want to see if the name you have in mind is available, contact the corporation's office in your state. You can frequently reserve your company name for a brief period of time until you submit your articles of incorporation for a nominal price.

Most of the time, you don't need to register your business name with your state once you've picked a name that is both legal and readily available. Your business name will be immediately registered after your articles of incorporation have been submitted.
 
Director Appointments:
Major financial and policy decisions are made by the board of directors for the company. For instance, the directors approve loans to and from the corporation, approve the hiring of corporate executives, and approve the issuing of stock. Before a corporation begins to operate, its original owners (shareholders) usually appoint its directors. The directors are frequently appointed by the owners, however, owners are not required to serve as directors.

No of how many owners a firm has, most states only allow one director. In other states, a company can only have one director if it has just one shareholder; a company with two shareholders must have at least two directors, and a company with three or more shareholders must have three or more directors.
 
Articles of Incorporation filing:
After deciding on a company name and electing your board of directors, you must draft and submit "articles of incorporation" to the corporate filing office of your state. This is typically the department or secretary of state's office, which is situated in the state capital. While the majority of states refer to the fundamental document forming the corporation as the "articles of incorporation," certain jurisdictions also use the words "certificate of incorporation" or "charter."

No state mandates that a corporation have multiple owners. The sole owner of a single-owner corporation simply drafts, signs, and files the articles of incorporation himself. The articles of incorporation for co-owned corporations may be signed by all of the owners or by a single person designated by the owners. The "incorporator" or "promoter" is the person who signs the articles of incorporation.

It is not necessary to write lengthy or intricate articles of incorporation. In reality, by completing a form provided by your state's corporate filing office, you may typically draft articles of incorporation in just a few minutes. The articles of incorporation often only need to include a few fundamental facts about your organization, like its name, principal office address, and perhaps the names of its directors.

A person who will serve as your corporation's "registered agent" or "agent for service of process" must also have their name and address listed, typically one of your directors. This person's information is kept on file so that people can get in touch with the company, say if they want to sue or otherwise involve the company in a case.
 
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If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1