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LegalCornerTM - Corporations F.A.Q.'s

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Q.What paperwork will I need to form a corporation?

A.The first step to incorporating a new business is having the Articles of Incorporation prepared and filed with the appropriate state agency. Generally this will require submitting one of more copies of the Articles of Incorporation along with the filing fees and initial franchise taxes, which vary from state to state. Once you have received your Articles of Incorporation back from the state the hard work begins.

The second step involves the preparation of:

  1. the bylaws, which detail the responsibilities, rights, and duties of directors, shareholders and officers;
  2. the incorporatorís action transferring the corporation from the incorporator to the initial directors; and
  3. the corporationís first organizational minutes, which set forth things like the corporation's principal place of business, bank accounts, etc...

The third step is the issuance of stock (shares) to the owners of the corporation and completing the stock ledger, which may require letters from the to be shareholders requesting their shares.

The forth and final organizational step, often forgotten, is the additional filings required by your state, such as the Statement of Officers and Directors and the Notice to the Commissioner, which in California must be filed after shares have been issued.

If you are planning on incorporating, we strongly recommend you seek the advice of a local business or corporate attorney. If you have incorporated, and used a paralegal or online service, we suggest you take the documents prepared and have them reviewed by a local attorney to ensure all of the required documents have been prepared and filed. Failure to file certain documents can lead to the levy of huge penalties.

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© Copyright 1999-2021 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.