A corporation is a legal entity with a corporate charter from a state.
Corporations can own property, borrow money, sue and be sued.
To form a corporation:
- Pick a name for the corporation.
- Prepare and file articles of incorporation.
- Choose a Board of Directors.
- Adopt bylaws.
- Develop the financing plans for the corporation.
- Establish a Corporate Bank Account.
- Set up a Corporate record keeping system.
- Hold a Directors' Meeting.
- Issue stock.
- Insure the business.
- Decide whether to file S Corporation Election.
- Lease or purchase the place of business.
- Lease or purchase equipment and supplies.
- Hire and train employees.
- Open for business.
- Most states require you to indicate you are a corporation in the wording or your corporate name.
- Corporate names can be trademarked.
- In an S Corporation, owners reports their share of corporate profits on their personal tax returns.