Every business starts with big goals! There are lots of trials and tribulations that each business will have to go through.
One of those important steps is incorporating your business.
When a business gets to this stage of their life, it is when they are likely to really elevate their success. This is because consumers, investors, and lenders are all more likely to take a business seriously when they are recognized as an actual corporation.
When you are recognized as a corporation, you will be able to get the globally recognized “Inc.” at the end of your name! As a company that gets the pleasure of having “Inc.” at the end of their name, you will also be eligible for tax and liability perks that businesses who are not incorporated get to enjoy.
So how do you go about making your business a corporation? The exact process will vary depending on what your actual business is and any other businesses that are attached to it. But not to fear, we will walk you through every step you need to know on how to incorporate your business. It really is as straightforward as a few simple steps!
1. Understand what incorporation means
Before you make your business incorporated, it is necessary to first understand what it actually means! In short, it is the process that you need to undertake to be recognized as a legitimate corporation. When you are a corporation, you will have three parts to your business that consist of shareholders, the board of directors, and officers. Together, the three parts will work together to run the corporation. There are actually two types of corporations: s-corps and c-corps. C-corps are taxed and valued on the entire corporation, which includes shareholders. S-corps are done so on personal tax statements are mainly done for those that are small businesses. It is possible to switch between the two, you just need to understand how that will impact your business structure!
2. Make the application and have the money
It normally takes a business around two to six weeks to become incorporated. Once they check off all the items of the requirements list, they submit the application with the accompanying submission fee that costs around $500. During the application process, you are allowed to seek legal help or advice from professionals who are well versed with the compliance rules and application process.
3. Know your licensing laws
This means that you need to know what permits or licenses your business must hold to state that you are properly being regulated. This also means that you have proof you are in legal bounds of the law for operating your business. The same goes for zoning laws, as where your business is located will mean there are different regulations your business needs to uphold.
4. Make sure your business name is unique
Before you get too far down the track, do some research to ensure that your business name is unique! You won’t be able to become a corporation if you are seen to be taking someone else’s trademark! A quick search on the internet should help and usually, all it requires is a few minor alterations to the name to ensure it is 100% unique!
5. Select an agent
You will need a registered agent to submit your application for you. This can be done within your own state and there will be plenty to choose from! Or, you are also able to have your lawyer help you with this as well! The good news with these agents are that no matter how big or small your business is, there is bound to be an agent registered that is in your budget!
6. Write your article of incorporation
This is one of the most important parts! You will need to write down what your business is called, where it is located, the purpose of your business, a list of people who will serve on the board of your business, and how long you see this business intending to last for. The article acts as a certificate that summarizes what you are all about! After you fill it out, you submit this with the proper fees and await a decision!
7. Then write your bylaws
After you write your article of incorporation, you now need to write your bylaws that outline how the corporation will be structured! This outlines how the board of directors will be run, the shares allocated, how loans and vendors will be dealt with, and also a corporate book of records to continually log all of this information on a frequent basis!
8. Enjoy being a corporation!
Once you are all confirmed, you can start running your business like a corporation! Have your board meetings, write your annual reports, and take your business to the next level of success!
Making your business incorporated is as easy as these eight simple steps, just do your due diligence and you will be good to go!