A corporation is basically the most universally accepted form of establishing a different entity from you to start and run a business under. A corporation is formed by filing articles of incorporation or a certificate of incorporation with the Secretary of State, Corporation commission, or Corporation division of the state of your choice. This process is what makes the corporation a completely separate entity from the people who run it.
Corporations are owned by shareholders.
Corporations issue a number of shares of stock when they file articles of incorporation with the state the shareholders would like to incorporate in. The shares are how the corporation is initially funded.
A Corporation can be formed in any state. Most of the time if you're operating the corporation in the state in which you reside, it will be best to incorporate in your home state. If you're going to be a national company, it will be beneficial to incorporate in tax friendly states like Wyoming, South Dakota, Delaware, or Nevada. If you live in a state with high income tax, you might find it advantageous to form a corporation in a tax free state and keep it as a C corporation.
A corporation has shareholders:
- The shareholders are given an amount of shares either physically or by just writing it down in a corporate journal according to how much money they invest in the company. Not all of the shares have to be issued or given out initially or at any specific time.
- The shareholders then have a right to vote in the corporate meetings because of the shares they own for investing their money in the corporation. If you've owned shares of publicly traded companies on Wall Street, your votes are basically worthless because there are so many shares issued and owned. In private companies, it's totally different because you're usually talking about a few shareholders and the main founder of the corporation usually will always maintain at least 51% of the shares to control the company.
- Shareholders or the initial incorporator elect the directors.
- The directors then elect the officers like a President, Vice President, CEO, CFO, Secretary, or Treasurer
Most states require you have at least a director, president, secretary, and treasurer.
Some states allow Close corporations which can operate without the appointment of a director.
In theory, each year the shareholders hold an annual meeting, where they elect their director(s) and then the directors elect their officers. Most states have language in their laws that basically say it's ok if the shareholders fail to have and hold an annual meeting, and that the current or initial directors and officers can maintain their office until a special or annual meeting is held, regardless of if a new meeting never gets held.
When we incorporate your corporation, we file custom drafted articles of incorporation according to your needs, make the initial resolution appointing directors and officers, complete everything with the state, do it correctly to minimize your exposure, and provide you corporate bylaws. All this for only our $100 Incorporation service fee.
To incorporate in most states with our service fee and registered agent service will usually be about $250 - $400.
|HOW DO I INCORPORATE A CORPORATION?||+|
|WHAT DO I NEED TO BE AWARE OF TO KEEP THE CORPORATION GOING?||+|
|HOW TO I FUND THE CAPITAL OR THE CORPORATION?||+|
|CAN ONE PERSON BE ALL THE ROLES OF THE CORPORATION?||+|
|WHERE IS THE BEST STATE TO INCORPORATE IN?||+|
|WHAT IF I WANT TO DO BUSINESS IN EVERY STATE?||+|
|HOW DO I PAY MY TAXES TO THE IRS?||+|
|HOW DO I PAY MY TAXES TO THE STATE?||+|
|SHOULD I DO AN LLC OR A CORPORATION?||+|
We are a national registered agent and incorporation service. That means that we pay income tax to every state and operate in every state. We do incorporations for our clients every day. We're not just a document filing company. We get hired by attorneys and individuals every day to not only incorporate their business, but get the business set up and registered with various state agencies to actually start doing business.
You can see the state filing fees for the state you would like to incorporate in by looking at the first couple questions on the sign up form below, or you can see more specific information on each of the states below. As an additional option, you can incorporate yourself, and just have us be your registered agent. When people sign up for registered agent service only, the correct forms and filing instructions are presented to you immediately after signing up for registered agent service.