How to setup a private corporation

It is important as a business owner to understand the general costs of incorporating before beginning the process. Find out more about how you can incorporate. Starting Your LLC. Articles of organization are part of a form that makes your business official.

Read more for tips and tricks on how to file LLC articles of organization in your state. Here are six of the reasons that limited liability companies have become a popular choice for small businesses. Incorporating your business online is fairly simple and fast, but it requires knowing where to go to obtain the necessary information and forms. When you form a corporation, you must take many essential steps to form a corporation properly. Choose a Business Name Choosing a business name for your corporation is an important first step when you start a corporation.

Check Availability of Name In addition to selecting a marketable name that works with your brand, you'll also need to ensure that the name is legally available. Register a DBA Name If you plan on operating your business under a different name than the corporate name you've selected, you may need to register a fictitious name also known as a "doing business as" or DBA name, an "assumed name" or a "trade name".

Appoint Directors Owners typically appoint directors, and in many cases owners will appoint themselves as directorsHowever, while an owner can be a director, a director need not be an owner. File Your Articles of Incorporation You will need to find, complete, and file articles of incorporation with your state's Secretary of State office. Write Your Corporate Bylaws Bylaws set out the rules governing how your corporation will be run.

Draft a Shareholders' Agreement While optional, a shareholders' agreement is a document you'll want on hand in the event of the death or retirement of an owner, or some other event which causes an owner to need to transfer ownership of his or her shares in the corporation. Hold Initial Board of Directors Meeting Whether your corporation has several directors or just one, an initial board of directors meeting should be held to deal with a variety of matters, including the adoption of bylaws, appointment of corporate officers and the authorization to issue stock.

Issue Stock As a small corporation, you will most likely be exempt from the more onerous requirements of the Securities and Exchange Commission SEC and your state's securities regulation agency. Obtain Business Permits and Licenses Before your corporation can be open for business, you'll need to obtain certain business permits and licenses.

Open a Corporate Bank Account It's important that your corporation has a bank account that's separate from the bank accounts of its owners. Ready to incorporate your business? Contents 5 min read Ready to incorporate your business? About the Author Belle Wong, J. Facebook Twitter. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.

Terms and conditions, features, support, pricing, and service options subject to change without notice. Explore Products. QuickBooks Blog. QuickBooks Blog Accounting. Start Your Business. Run Your Business. Grow Your Business. Free Tools. What is a corporation? The benefits of forming a corporation Why should you create a corporation? Limited liability Perhaps the most significant benefit of corporations is that they offer personal liability protection to shareholders.

Unlimited life and transferable ownership Corporations have an infinite life. Tax advantages Electing corporation status offers numerous tax advantages. The downsides of forming a corporation Although corporations can offer numerous benefits, there are a couple of disadvantages potential owners need to consider. Cost The fees to register a corporation vary from state to state, but they often cost a couple hundred dollars. Administrative duties There is a lot of paperwork involved in operating a corporation.

Select a corporate name While it may seem like a minor detail, choosing the right name for your corporation is a crucial step. Draft and file your articles of incorporation Articles of incorporation, or certificates of incorporation, are required to document the formation of a corporation.

Create corporate bylaws Not all states require corporations to draft corporate bylaws, but you should consider developing them either way. Maintain corporate minutes Corporate minutes document the meetings of shareholders and the board of directors. Select a tax election For federal income tax purposes, a corporation can elect to be taxed as an S corporation or C corporation.

Obtain required licenses and permits Your corporation should determine whether it needs any permits or licenses to operate. Start your corporation today While the process for incorporation may be complicated, there are many benefits to doing so. Important offers, pricing details and disclaimers This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business.

Smart features made for your business. The goal with your business plan is to create a foundational blueprint for your business. A business plan is also a useful marketing document you can use to obtain funding. Find business funding and create a pre-incorporation agreement between the business founders and initial investors. This agreement should address ownership, authority and leadership of the private company.

Assign a total number of corporate stocks, list shareholders and assign stock ownership as appropriate. Incorporate your business and register your business name.

Businesses can be incorporated in the state where business will be conducted, or in another state with more preferable business laws, such as Delaware.

Haiti Earthquake — Resources for Disaster Relief. The Situation in Afghanistan: Learn More. Setting Up a Private Foundation. Prime Times to Start a Private Foundation Although a private foundation can be set up at any point during your lifetime—and even after your death—there are certain times and occasions when establishing a private foundation can be especially advantageous.

How much latitude should there be for future generations to identify and support their own priorities? Is there a plan for succession? Is there enough interest in the family to carry on? Trust or Corporation? Incorporation Regardless of your own state of residency, there are many unique benefits to setting up a foundation as a Delaware corporation. The Delaware Chancery Court has developed an unparalleled body of case law that is frequently cited as precedent in other state courts.

Corporate filings in Delaware can be completed quickly and at less expense than in other states. No other company or professional firm has a comparable track record. Speed: We have experienced staff and a proven process for creating private foundations quickly. How quickly? Your new foundation can be up and running, ready to make grants, in as little as three business days.

Cost: While cost is only one piece of the equation, it is an important one. Our set-up fees are significantly less than those others typically charge because our streamlined process saves time, enabling us to pass the savings along to you. Complete the brief set-up questionnaire.

Fund your foundation and start giving. You can start your foundation with a relatively modest sum and add to it over time.

Next Step Ready to learn more about creating a private foundation?