How to Do These Things

If you are starting a new business and you want to make the business a full fledged corporation you will need to file the correct papers with the State you live in for tax purposes. You can go about this in two ways, you can hire a lawyer, and some lawyers will set a flat fee to do the work. There are companies that can help you set up the corporation for a small fee.

Step One: First you want to determine whether the corporation will be an in state incorporation or an out of state corp. or an international business. Depending on the size of the business will most likely determine the issue we mentioned. Most small or medium size business tends to be in State Corporation.

Step Two:  Determine what kind of corporation is it? Will it be a partnership or a sole ownership business?

Step Three: If you are using a company to such to incorporate your business, all you have to do is give them the information over the phone. They will help you determine whether or not the name of your business is available. Then you will give them the business information from steps one and two as well as the business type, address, phone number and Tax ID number. This number you have to call the IRS and they will provide you with this number.

If you are using a lawyer, they will also need all of the information above plus their fee to incorporate. Both methods will ask if you want a Board of Directors, Stock Holders or Co Owners.

Step Four: Once you receive the Corporation papers you have to set up the incorporation of the business with the Secretary of State’s office. They will send you a certificate that you have to sign.

Step Five: Sign the certificate and if there are any other parties that need to sign the papers.

Step Six: Make Sure that you read all of the Bylaws of the corporation and follow all of the tax instructions. If you have a board of directors, it is wise to hold meeting to discuss the corporation and the laws of incorporation.

Owning and operating a Corporation is serious, it is very different from working under a DBA. There are laws and rules and not to mention taxes that have to be paid on time. You should have someone in charge of all of the corporation business so you can make sure that everything is being handled properly and within the guidelines.