Gaizer.com Tips for Business Start-ups

There are 4 ways you can incorporate, this is by no means an exact list, it is only some information that I’ve compiled, always check with your legal, or financial professional.

• Using an “incorporating company” will cost $50 to $200 extra, but these companies will register your business and, depending on the package you buy, even get your Tax ID Number.
• Your accountant might know the registration process and can help you for a fee.
• Using a lawyer is the most expensive, but most professional, solution. Depending on the lawyer, she might be able to help you to obtain the proper licenses for your industry.
• Do it yourself (you may find the forms on your state’s website, or on your local office)

Choosing a Corporate Name

Required Form: Certificate of Incorporation

The name must end with “Corporation,” “Limited,” “Incorporated,” or be a short form of those such as Ltd., Corp., or Inc.

Your corporation’s name cannot have the following words prohibited by the law: State, United States, cooperative, Federal Reserve Bank, or national.

You must choose a name that is different from another corporation registered in your State

The paperwork

Name and Register Your Corporation’s Directors in the Corporation Papers

File the Articles of Incorporation. Include the name of your corporation, address, and registered agent (the contact person in case a member of the public needs to speak to someone about the corporation).

Appointing Directors

The directors of your corporation make all the major decisions. They employ officers, approve the distribution of stock, agree on loans for the business, and set their salaries. The initial owners of the corporation appoint the directors. In most cases, the initial shareholders (owners) are the directors of the corporation.

Drafting the Corporate Bylaws

The person incorporating the company or the board of directors in the organizational meeting writes the bylaws. You may opt for a lawyer to help you with this. The bylaws of a corporation are the procedures that establish the rights of the shareholders, officers, and the board of directors. Your corporate bylaws should cover the following:

· How many members are on the board of directors.
· The frequency and procedures for the board and shareholder meetings.
· Responsibilities of the officers and directors.
· Description of the company’s fiscal year.
· Protection from lawsuits and claims for officers, directors and agents.
· Voting rights procedures.
· Rules on corporate stock transfers.
· Other corporate issues.

The board may change, repeal, or add to the bylaws. The shareholders have the same right by vote. The bylaws limit the board’s powers.

Holding the First Meeting and Issuing Stock

In the initial board meeting, the directors must:

· Accept the corporate bylaws.
· Take on a corporate seal and a stock certificate form.
· Determine the first accounting year.
· Approve the distribution of stock shares.
· Designate the corporate officers.

If the corporation is an S-Corporation

the directors must approve the determination of S-Corporation status. Though filing the incorporation documents is not very complicated, you might want to use a lawyer, an accountant, or an incorporating company to help you.

Get a Tax ID (Employer Identification Number)

Obtaining the Employer Identification Number (EIN) is a straightforward process. You must fill out a SS4 Form and file it with your local IRS service center.

You can obtain EIN number by filling and mailing out the SS4 form, applying through the web, using the IRS Tele-TIN service or the IRS FAX-TIN service.

Filling out the SS4 form:

You can download the form from the IRS website or apply online at http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Issuing the Shares

You need to prepare and offer stock certificates. In this meeting, document the initial shareholders’ names, the number of shares purchased by each shareholder, and how the shareholders will purchase the shares.

Again these blog entry is for informational purposes only, always check with your legal or financial professional