Incorporation requirements

cepin11 · 11-25-2008, 01:23 AM

What exactly are the requirements to become incorporated? Also, are their any legal actions for a company who falsely titles themselves [business name] Inc.?

gregdavidson · 11-25-2008, 06:38 AM

I don't think there are requirement besides already having a business license. You just have to manage your company by following the guidelines of being a corporation. I never incorporated any of my businesses but heard that most people get advice from a lawyer to avoid any complications. You might also want to check out some books on Amazon.com

GuyBBY · 11-25-2008, 07:45 AM

The first question you need to ask is what structure you are planning on operating as (Sole Prop., General Partnership, LLC, S Corp, C Corp) and then you will have greater results in getting assistance here pertaining to providing you with steps.

Also, you should review your business model and your services, scope, etc to figure out if filing/incorporating is even worth it right now, and if it is, which structure fits you best.

Follow up and I will try and help if I can.

Guy

cepin11 · 11-25-2008, 08:15 AM

Thank you both for your replies! I should have probably been more specific in my questioning, though both of your answers have helped me with other thoughts on my mind.

The main reason I'm asking this is, a friend of mine has recently started an online company and is calling it [name] Inc. even though they haven't been licensed as one. I told him that he would probably have to meet certain requirements and get a license to officially and legally be called an incorporation, but he wasn't sure himself. I don't want for him to let a careless thing like that get him into any legal trouble, so I was wondering if it is illegal to call one's company a Inc. when it truly isn't licensed as one?

kimbeckers · 11-25-2008, 10:29 AM

Inc, is a designation and is not part of the name of the company, your friend should not be using it in his business unless he is indeed incorporated. The rules are different depending on where you live and check with an accountant or tax attorney before taking anybody's advise.

Here is a link to a free guide to starting your business by the book if you are interested. http://kimbeckersservices.com/start-a-small-business/

Good luck,
Kim

GuyBBY · 11-25-2008, 12:04 PM

Cepin11- feel free to PM me as I have some past posts and writeups of my own that I have helped others with.

Guy

BusinessAdviser · 11-25-2008, 05:07 PM

You can't use Inc. unless you're incorporated. Simple enough.

RetailAttorney · 12-03-2008, 10:55 AM

First, make sure you want to form a corporation as opposed to a limited liability company. See post below comparing them.

Forming a corporation in most states requires that you file Articles of Incorporation with the Secretary of State. The Articles set forth the name of the corporation, its purpose, its address and other basics. The name cannot be the same as, or confusingly similar to, any other business entity registered in the state -- most states will check this in advance. Filing fees vary, and an advance payment of minimum tax may be due. You will also file a statement listing officers and directors, which usually must be updated annually.

You will need to request a taxpayer identification number from the IRS.

You will issue share certificates to the shareholders and then sign resolutions adopting bylaws, electing board members and apppointing officers. All of this can be found in a corporate kit available in most states. To protect the shareholders against personal liability you must follow corporate guidelines carefully.

It is unlawful in most states to use anything in a business name that suggests the business is a corporation if it is not. Similarly, corporations must include in their name co, inc, corporation etc to alert the public of the lack of personal liability of those acting on behalf of the business.

The foregoing is offered as a public service for educational purposes and does not constitute legal advice and may not be relied upon as such. An attorney-client relationship cannot be created except by mutually signed engagement agreement.

oozeven2000 · 12-03-2008, 01:01 PM

There is a great little online legal company that does this stuff for very cheap.. I've used them twice already: Lanternlegal.com

BusinessAdviser · 12-03-2008, 05:14 PM

Quote:

Originally Posted by oozeven2000

There is a great little online legal company that does this stuff for very cheap.. I've used them twice already: Lanternlegal.com

Bad advice. They're cheap...for a reason. If you already have the legal know-how or have received the legal advice, they're not bad, but if you're winging it because you just want to incorporate for the sake of it...bad idea.

oozeven2000 · 12-17-2008, 04:40 PM

Quote:

Originally Posted by ADVERTISE HERE!

Bad advice. They're cheap...for a reason. If you already have the legal know-how or have received the legal advice, they're not bad, but if you're winging it because you just want to incorporate for the sake of it...bad idea.

Again, you seem to be lacking some information here. I did not have any "legal-know how" and they took care and even explained everything to me! Furthermore, they are real lawyers, so they can and do provide the legal advice. I suggest you check them out..

Barkri12 · 05-18-2009, 11:57 PM

Quote:

Originally Posted by cepin11

What exactly are the requirements to become incorporated? Also, are their any legal actions for a company who falsely titles themselves [business name] Inc.?

While you may be perfectly capable of understanding how incorporation works, you may not have the time. This can be especially true if you are wrapping things up with a current employer as you prepare to launch your own business. If it is a question of carving out time to actually handle the paperwork and the filing, then using services for incorporation makes sense.

For More Info :
customerservice@clickandinc.com

LSnyder · 05-19-2009, 11:25 AM

The attorney I work for Daniel A. Pepper, Esq., founder of the Pepper Law Group, LLC has his own informational DVD called "Legal Considerations of Starting and Online Business". Although this DVD does not offer "legal advice" it does assist you in how to decide what are the proper ins and outs of establishing your online business.
Dan also teaches classes at two of our local community colleges for the SBA.
If interested, you can purchase this DVD through our office by calling or emailing me (all info located in my signature).
The DVD is $95 which includes shipping.

Good Luck.

Lisa Snyder

harmonsmith · 06-19-2009, 01:06 AM

For the majority of small businesses, the relative simplicity and flexibility of the LLC makes it the better choice. This is especially true if your business will hold property, such as real estate, that's likely to increase in value.
If you have decided what kind of incorporation you want and have knowledge about all the differences and legal matters of different corporations. I recommend you to use online incorporation services. There are several online services available that can help with incorporating your business in one state or several. I recommend you clickandinc.com/. That's way the process will be lot easier.