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CORPORATIONS << Back | Our Fees | Learn More >>
Forming Your Corporation My Law Daddy prepares andf files all forms required to form your corporation. However, please consider the following issues when ordering your corporation. Where to Form the Corporation. Although a corporation can be formed in any state and the District of Columbia, the actual state of formation should be carefully considered. Typically, individuals form corporations in their home state. However, if you do not plan on doing business in your home state, you may want to consider forming a corporation in another state. Delaware and Nevada are popular states for forming corporations. Delaware is considered pro-business, does not tax out-of-state income, and has a well established legal system when it comes to business entities. Nevada is also considered pro-business, does not tax corporate income and lacks a formal information sharing agreement with the IRS. Corporate Name. The name of a corporation typically ends in Incorporated (or Inc.), Corporation (or Corp.), Company (or Co.) or Limited (or Ltd.). Moreover, the name must not resemble the name of another corporation in that state. Accordingly, prior to forming your corporation, we check to ensure that your chosen name is proper and available in the state of formation. Board of Directors. The Board of Directors is the managing body of the corporation that directs the fundamental policies and major undertakings of the corporation. Each director is elected by the shareholders. A director can also be a shareholder or serve as an offficer. Major undertakings that must be approved by the Board of Directors include (1) electing officers; (2) amending bylaws; (3) declaring a dividend; and (4) significant transactions such as mergers and reorganizations. Officers. Officers are appointed by the Board of Directors to operate the corporation on a day-to-day basis. Officers typically consist of a president, treasurer (or chief financial officer) and secretary. A corporation can choose to have more officer positions, and moreover, the same person can hold all offices. Officers can be directors or shareholders. Registered Agent. A corporation must have a registered agent to receive tax documents and legal process on its behalf. The registered agent must be either (1) an individual living in the state of formation with a valid street address (no P.O. boxes), or (2) a company authorized to serve as a registered agent. Accordingly, you may act as your own registered agent if you reside within the state of formation. However, since the name and address of the registered agent are publicly available, you may want to appoint an authorized company to serve as your registered agent (we can attend to this for you). |
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