How To Incorporate a Firm

Before venturing in the practice of having a company incorporated, it is meaningful to decide on whether the process will indeed be beneficial to the owner as well as the business. The main gain obtained by obtained by having a business incorporated is the limited liability of the company. The idea behind this is that when the company is incorporated, the liability of the proprietor becomes limited only to the capital that was introduced into the firm. Even then, the demerits of becoming incorporated include additional expenses incurred in statutory control and book keeping as well as the issue of double taxation. Double taxation implies a situation where the company is taxed twice based on its profits and on its dividends that are earned from net profit. These ideas have to be addressed carefully before make the decision to have the firm incorporated. So, how to become incorporated? Read the article to know.

The instant a decision is reached, at the next move is to identify name for the company and stipulate the state in which the firm is to be incorporated. The next step is to check with the state secretary in the availability or the name. The availability of the company trademark also has to be checked from the United States trademark website. If the business is to be operated on a small scale with the borders of one state, the best strategy is to register it within home state. If the business owner wants to venture across borders, this is an indication of confidence and aspiration the have the business grows. Hence, such circumstances require that that the firm be incorporated in a state that offers ample business opportunities.

Having met the previously mentioned conditions, the next point is to check with the state secretary for availability of the pertinent documents. The documents include Certificate of Incorporation or Articles of Incorporation, Bylaws for the Company, Stockholder Resolutions, and Declaration by the Company Board of Directors, Stock Ledger, and Stock Certificate. The process of being incorporated has been simplified by the Corporation Act, which involves many abridged processes enabled by among other things, application of Internet services.

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