Steps in the Incorporation Process

What are the steps in the incorporation process or the steps necessary to bring a corporation

into existence? Well, the first step is to familiarize yourself with the requirements of the particular jurisdiction

where you are going to file and bring this corporation into existence

You do this with the Secretary of State's office in the state where you intend to organize the business

Now, generally, most people do this process via the Internet. Every Secretary of State in the United States has a website whereby you can visit and file all of the necessary documents electronically to bring your organization into business

Now, there are certain scenarios where you'll have to mail in your application

but unless some of these rare instances or scenarios apply to you, generally the

corporation can be formed electronically via this website Now once you on the website you going to want to reserve the name of your corporation Generally this is done by searching the directory of names to make certain the name that you choose is not taken or violates the policies of the state

If no, you will choose the name and add the ending indicating that it is a corporation

Generally, CORP or INC or LTD, depending on the state and the suffixes that are allowed to be added to indicate corporate status of the business entity

Once you've reserved your name, you can then go through the process of filing the Articles of Organization

Now, generally, the website will take you through this process in a question and answer format

You will enter information such as the name of the incorporator, that is the individual bringing the entity into existence, the registered agent, that is the person who will receive any correspondence from the Secretary of State's office on behalf of the company

So oftentimes if you are registering in a state such as Delaware where you do not do business but it is very common to organize there then you can hire a registered agent to receive notice or correspondence on your behalf but you

set this up prior to or at the same time as forming the organization

Now then you will identify where your office will be located for business operations

After that you will identify the number and types of ownership equity, that is the shares

of stock that you're going to authorize for the company. Generally, a company has to have one type of stock known as common stock, but you may

also authorize other types of stock known as preferred stock or sometimes advisory shares

or things of this nature that have different rights than normal common stock

And you also identify how many shares of each of those types of stock that you are going

to authorize for later issuance to the shareholders of the company who invest in the company or

otherwise provide value to the company in exchange for those shares. Now next you will have to pay the filing fee also known as the franchise fee of the jurisdiction where you organizing If you going to operate in other states you will also file in those states as a foreign

entity that already exists in the state where you are currently filing

So, for example, if you're filing in Delaware, you'll pay the franchise taxes in Delaware

to bring the entity into existence, and then you will register to do business in other states

as a foreign entity. Now, with that being said, once the filing fees are paid, then you will submit and wait

to receive your charter or certificate of incorporation. And that's it. Once you receive this document, the corporation is in existence, and you are now free to continue

the process of setting up the business, which means establishing the internal governance

structure of the organization. This begins with the initial actions of the board of directors and the distribution of

ownership interests and funding of the corporation by shareholders. So with that being said, these are the steps involved in the incorporation process