Starting a Corporation
If you are thinking of starting a corporation, below is a checklist of steps to take before you open for business. Keep in mind that your corporation’s start-up requirements might vary from the list below, depending on the specific type of business you are in, and where your business is located.
1. Decide on a business name for your corporation. Keep in mind that your state may require that your corporation’s name include an identifying word such as “incorporated,” “limited,” “corporation,” or an abbreviation of such a term.
2. Search availability of your corporation’s chosen business name, and for similarity to existing names. Call Kehr Law to find out how to make sure your proposed business name is available.
3. Pick a place to incorporate. Call Kehr Law to find out which state is the right place for your business to incorporate.
4. Choose directors and officers for your corporation. In California you are required to have at a minimum, a President/CEO, Secretary and a Treasurer.
5. Hire a qualified business attorney to set up and represent your corporation. This is probably the most important step in starting your corporation. Do not hire or pay an online company that promises to set up your corporation for a cheap fee. These companies will not provide you with a qualified business attorney, and direction on how to complete the required corporate formation documents, or provide you with any legal advice whatsoever. A qualified business attorney should save you thousands more than you spend on them.
6. A qualified business attorney will prepare and file your corporation’s Articles of Incorporation with the Secretary of State’s office in your state, track its progress and obtain a new Federal Employer Identification Number (FEIN or EIN) for your new corporation from the IRS.
7. A qualified business attorney will also draft and prepare not only your corporation’s by-laws, but also all of your corporation’s initial company records, Minutes and filings as required under state law. For example, in addition to drafting and filing your corporation’s Articles of Incorporation and drafting your corporation’s Bylaws Kehr Law will:
• Help you determine if your corporation should Elect “S” corporation tax status, and when appropriate, file your corporation’s IRS Form 2553, as required under Federal Tax Laws;
• Help you open a separate business bank account for your corporation;
• Open a separate bank account for your corporation.
• Start a minute book for your corporation’s meetings;
• Hold your first board of directors’ meeting;
• Issue certificates to your corporation’s initial stockholders;
• Obtain business licenses and permits for your corporation from:
o The federal government;
o Your state government; &
o Your local government.
8. Create a Shareholder’s Agreement or Buy-Sell Agreement, if necessary.
9. Follow all legal requirements for running a corporation. To learn more about running a corporation, keeping the minutes and your other annual legal requirements, contact Kehr Law at (619) 400-4942 or email@example.com. We offer this service to all of our corporate clients and would be happy to answer any questions you may have regarding the foregoing.
Incorporating can be a long-term benefit to your new business in the long run, but the process is complicated. To ensure that your new business complies with your state’s legal requirements at all steps in the incorporation process, you should always consult with an experienced and qualified business attorney. Contact Kehr Law at (619) 400-4942 or firstname.lastname@example.org for a free consultation!