Q:

How do you incorporate a business?

A:

Quick Answer

Incorporating a business involves fulfilling all legal requirements and submitting application documents to the office of the secretary of state. The office then notifies you of the total fees you are required to pay.

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Full Answer

  1. Decide on the type of corporation structure to register

    You may register either a C corporation or an S corporation. C corporations are big firms with more than 35 stockholders. S corporations are firms with fewer stockholders and only one class of stock.

  2. Assemble the shareholders

    Assemble the firm's shareholders to appoint the board members.

  3. Appoint the board of directors

    Shareholders appoint and give roles to the board of directors, who are legally empowered to act on behalf of the firm.

  4. Acquire articles of incorporation

    Contact the secretary of state's office for all the documents you need to make up the articles of incorporation. After acquiring the documents, hire a securities attorney to assist you in filing them.

  5. Return the documents and required payments to secretary of state's office

    After filing, present the documents and all payments to the secretary of state's office.

  6. File your firm with IRS

    After incorporation, file your firm with IRS to register and acquire a new tax status. S corporations file form 1120S, while C corporations file form 1120. S corporations are also required to submit form 2553, which validates corporate elections.

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