Before you hire an attorney, make sure you go through an initial consultation. During this consultation, ask the attorney about their experience with creating and registering companies, their level of success, and their history of attorney discipline. When you find an attorney you like, be sure to work out an acceptable fee arrangement and get the agreement in writing.
If you create a corporation, the entity itself is subject to corporate income tax at both the state and federal level. Also, all dividends you distribute are subject to individual tax rates on the person’s personal tax return. [2] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source If you create a limited liability company (LLC), the Internal Revenue Service (IRS) will treat it as either a corporation, partnership, or as a disregarded entity. Each of these decisions will affect how you pay your taxes. If you create a nonprofit, you may qualify for tax exemption at both the federal and state level.
In general, LLCs and corporations offer personal liability protection while sole proprietorships and partnerships usually do not. [3] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
If you create a corporation, you will have to raise money through loans and personal investments (i. e. , the purchase of stocks or the use of venture capitalist firms). If you create a nonprofit entity, you will raise money through personal donations and grants.
Corporations are often required to maintain contracts, leases and other agreements; licenses and permits; and payroll and personnel files. [4] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Corporations are also required to make annual reports in many states.
An executive summary, which is a snapshot of your business as a whole. A company description, which provides information about what you do and how you are different from other companies. A market analysis, which includes a discussion of your industry, target market, and competitors. A description of your organization and management, which lays out how you have structured your business (e. g. , corporation, nonprofit, partnership). A marketing and sales plan, which tells people how you plan to market and sell your product. Financial projections, which tells others what type of funding you need and why. Funding requests, which are formal offers for people to fund your business. [5] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
If you are creating a corporation, you will be required to include words like “corporation”, “company”, or “limited”. [7] X Research source You should register your name as soon as possible with your state. This process is often known as registering your “Doing Business As (DBA)” name. In California, for example, you must register a DBA if you are a corporation, partnership, or sole proprietorship doing business under a name that is not your own. You will register your name with the city or county clerk’s office. Once you register the name, you are required to publish it in a newspaper for a specified period of time.
For example, in Oregon, you must provide an Oregon street address that is identical to the registered agent’s business office. [10] X Research source
Contact potential candidates and choose a person or entity that meets all the requirements of your state.
Contact potential candidates and choose one or more candidates you think would be a good fit.
To create bylaws, look at your state’s laws regarding any requirements there may be. Second, find examples of bylaws online and use them as a template.
The name of your entity; Your registered agent and registered office; The name of your directors (for-profit) or managers (nonprofit); Information about shares (if you are a for-profit company); The purpose of your company; and The name of the organizer (person crating the company). [16] X Research source
If you do not file online, you will need to take your articles of incorporation to the Secretary of State’s office or fax them to a designated number.
Do you have employees? Is your business a corporation or partnership? Do you file tax returns for employment, excise, or alcohol tobacco and firearms? Do you withhold taxes on income paid to a non-resident alien? Do you have a Keogh plan? Are you involved with nonprofits, trusts, or estates?[24] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Corporate taxes; Employment taxes; Personal income taxes; and Sales, property, and use taxes.
IRS Form 1023 can be found online and can be filed electronically with the IRS.
For example, in Texas, periodic reporting forms can be found online on the Secretary of State’s website and can be filed online using the SOSDirect system. They are required to be filed only if you are a certain type of company (e. g. , a professional organization or a nonprofit). [26] X Research source
