Becoming your own corporation is not easy. Corporations are an entity that is separate from the shareholders (AKA owners). Corporations acquire their own assets. That’s why you should study up these 6 steps to becoming a corporation. Take notes.
Becoming a Corporation in 6 Steps
1. Hiring an Attorney
To become a corporation, hire a transactional attorney. They will walk you through everything that you need to know about the process of business formation. Government laws vary by state. Be aware that laws are changing at all times. Get the right transactional attorney to help manage the process. You don’t want to run into any issues.
2. File the Articles of the Corporation
You need to have a registered agent for your corporation. Registered agents file articles of incorporation. In the future, if your corporation is ever to become a party to legal action, then the agent files the resident of the state.
3. Create a Bylaw
Some states do not require a bylaw from corporations, but you should be aware of the rights and responsibilities of business shareholders. The bylaw establishes legitimacy before extending loans to the open account of the corporation.
4. Get Issued a Stock
It is required for shareholders to contribute cash, services, and other priorities to corporations. It falls under the requirements of state and federal security laws.
5. File all Necessary Documents
This is very necessary. Make sure that you fill out all the documents in order to get your corporation on its feet. Most states have contrast legal documents or the length of time in which they need them.
6. File an IRS Form
Unlike filling out the necessary documents, every corporation needs to file for an IRS form. IRS forms are like bank accounts. File an IRS form and apply for EIN.