If you are starting a business and have decided upon a corporation structure, you are likely aware of the advantages and disadvantages. It is important that you follow the procedures for forming a corporation closely. A College Station corporate attorney can help ensure that you meet all state and legal requirements.
Is a Corporation Best for You?
Keep in mind that shareholders in a corporation are basically doubly taxed. You can alleviate some of the tax disadvantages by forming as an S corporation. Indeed, your first step in becoming a corporation is to decide whether and S or C type is best suited to your business needs. A College Station corporate attorney will thoroughly explain what each entails so that you can make the optimal choice.
The Steps to Forming as a Corporation
One of your first and most important tasks in setting up a corporation is to choose a name. You want a name that people will remember and will associate with the type of work you do. The name also needs to not be identifiable with another competing business. You need to create a name that is unique from other entities in the state. You can check with the Texas Secretary of State’s office website for this.
Once you have established your name you will need to proceed as follows:
- File a Certificate of Formation: This needs to be filed with the state secretary of state, and must include your corporate name and address; the nature of your business; the number of shares you will be issuing; the name and contact information for the agent for service of process; etc.
- Appoint the Agent for Service of Process: This individual will be authorized to accept legal documents on your behalf, such as if you are sued. Be sure that the person you select agrees to take on this responsibility. He must have a legal residence in Texas.
- File Your Articles of Incorporation: These must be filed with the secretary of state’s office.
- Establish Corporate Bylaws: These are internal rules for managing your company. As such, they do not need to be filed with the state. However, it is very important that from the outset you create the regulations under which shareholders, directors, and corporate officers will operate. Your bylaws will detail how board members will be elected, when shareholder meetings will take place, etc.
- File a Request with the IRS for an EIN: The EIN, or employer identification number, will need to be used in all your correspondence with the IRS, including tax filings.
- Obtain all Permits and Licenses: You need to check with the county in which you reside to determine what is required.
Once you have completed these steps you need to appoint your initial corporate directors and hold your first meeting.
If You Plan to Incorporate
If you wish to become a corporation it is very important that you complete all the requirements and develop bylaws that help the business run efficiently. An experienced College Station corporate attorney will help you to this end. Peterson Law Group will provide you with the highest quality of legal assistance. Call today at 979-703-7014.