How to Form a Corporation

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:

1. Pick a name for the corporation.
2. Prepare and file articles of incorporation.
3. Choose a Board of Directors.
4. Adopt bylaws.
5. Develop the financing plans for the corporation.
6. Establish a Corporate Bank Account.
7. Set up a Corporate record keeping system.
8. Hold a Directors' Meeting.
9. Issue stock.
10. Insure the business.
11. Decide whether to file S Corporation Election.
12. Lease or purchase the place of business.
13. Lease or purchase equipment and supplies.
14. Hire and train employees.
15. Open for business.

Tips:

1. Most states require you to indicate you are a corporation in the wording or your corporate name.
2. Corporate names can be trademarked.
3. In an S Corporation, owners reports their share of corporate profits on their personal tax returns.