| If you own a business, you know that one of the | | | | |
| most important aspects of success is the continued | | | | 1. Determine where you wind to file for incorporation. |
| growth of your company. Long-term success and | | | | If you're a small- to medium-sized company, you'll |
| viability are often dependent on your company's | | | | probably want to incorporate in the state in which |
| ability to expand and control more of the market | | | | you do the majority of your business. Many large |
| share, becoming more integral and profitable in the | | | | corporations file for incorporation in states that have |
| process. Chances are, you've already thought about | | | | particularly beneficial laws, such as Delaware and |
| incorporation and investigated some of the benefits. | | | | Nevada, although this will present more problems than |
| But it's a big step, and you may have cold feet about | | | | benefits for smaller companies. |
| it. After all, you may be worried about losing control | | | | 2. Sign a pre-incorporation agreement with any other |
| of the company you founded to stockholders. | | | | founders of the company. This document will set |
| However, most of the biggest, most profitable | | | | guidelines for your business, establishing a board of |
| companies in the world are corporations, and that's | | | | directors and determining how many shares will be |
| probably enough to make you curious. | | | | for sale, or in closely held corporations, who gets |
| The Benefits to Incorporation | | | | how many shares. |
| Incorporation has a number of benefits to your | | | | 3. File with the Secretary of State's office for the |
| company. First of all, it allows your business to | | | | name under which you want your corporation to do |
| generate income by selling shares of stock on the | | | | business. If the name is already taken, you will be |
| market (assuming you have a publicly traded | | | | notified. |
| corporation). Corporations also have several tax | | | | 4. Prepare and sign the articles of incorporation for |
| benefits; S corporations, for example, do not pay | | | | you business, which will make official the governing |
| taxes. Additionally, corporations have limited liability to | | | | rules of your company. It is a good idea to work |
| their investors, and have the ability to sue or be sued | | | | with a business lawyer during this stage, as they will |
| in their own name. | | | | ensure the legality of the document. |
| Steps to Incorporation | | | | 5. Hold a stockholders' meeting to establish bylaws |
| If you're interested in incorporating your company, | | | | and a board of directors. |
| you'll need to follow these steps: | | | | |