What Is A Corporation?
Companies offering incorporation services are available to help you become a corporation. Incorporating your business gives you liability protection by making your company a separate entity from you, your officers, your directors, and your shareholders. This means everyone’s risk is limited to their initial investment in the company.
Corporations are fully capable of acting on their own and conducting business. An incorporated company is responsible for its own debts, and can own property and enter into contracts. The incorporated company can sell stock to raise capital. It can continue to exist long after the original owners have passed on, and ownership can be easily transferred. If something happens, the company itself is responsible, and none of the individuals in the company lose personal property in the process.
How Do You Incorporate Your Business?
In order to become a corporation, you must file a set of documents with the state that define your company and describe under what conditions you will be operating business. These documents are called Articles of Incorporation. These articles must be accompanied by fees required by the state, and in some cases prepaid state taxes.
Once the appropriate state official receives your Articles of Incorporation and necessary fees, they are reviewed for name availability and appropriate content. Then, the state official files the articles and your company is a corporation from that day forward. You will receive a receipt, charter, or certificate confirming the incorporation is complete. Since not all states have the same requirements, be sure to check with your state to see if you will need to furnish any additional documentation.
What Are Incorporation Services?
An incorporation services company has experience in managing the incorporation process for you.
One of the main benefits of using incorporation services is their ability to do a name search for you. They will determine whether or not the name you choose for your corporation is already in use, which would prevent your application to incorporate from being accepted. They will also help you designate a registered agent and gather all the necessary information you need for creating your Articles of Incorporation (for more information, see my article “Incorporating Your Business? You Need To File Articles Of Incorporation”).
Incorporation services companies will then file your Articles of Incorporation with the state, follow up, and keep you apprised of all developments. They will also assist you with any of the additional paperwork that your state requires.
Many companies offering incorporation services will also include “corporation kits,” which may include custom stock certificates, corporate bylaws, sample meeting minutes, customized notices and waivers, and a corporate seal which banks require in order for the corporation to open up an account.
Incorporation services companies offer a wealth of information on their web-sites. They provide step-by-step instructions on incorporation, definitions for the various types of corporations, and sometimes offer a sample set of Articles of incorporation for your review. Some have an online form for you to fill out in order to start the incorporation process right away. They are available to answer any additional questions you may have, and their time-saving services will get you up and running as a corporation in no time.
By Alisa Elizabeth King Terry