A Brief Overview of the Incorporation Process

By Perry Fisher

Once you have made the decision to incorporate and have settled on a business structure, there are several additional steps you must take to complete the incorporation of your business.

One of the first things you must do is select a suitable name for your new business entity. When choosing a name, there are certain legal guidelines to be aware of. For example, you must make sure that your proposed name is not already in use by another entity or that it is not already registered under a federal trademark or service mark registration.

After you select a name, you may want to protect it by applying for a trademark. In addition, you have the option of registering alternate names under which you conduct business. These are commonly known as “doing business as” or “DBA” names.

Next, you must decide what state to incorporate in. Generally, if you conduct all or most of your business in North Carolina, it will be to your advantage to incorporate here. The associated fees and taxes will almost always be lower. If you decide to incorporate in another state but continue to transact business in North Carolina, you will need to register to do business here. Regardless of where you incorporate, you or your attorney should check the state’s specific requirements for incorporation. Different states may have different requirements.

You will also likely need to obtain a Federal Employer Identification Number (EIN). An EIN is similar to a Social Security number and identifies a business for tax purposes. This number is usually required by the IRS but may also be required by a bank if you wish to establish a business checking account.

Finally, you will need to prepare the articles of incorporation and bylaws for your corporation. The articles of incorporation are the document that establishes your corporation. It includes the names of the incorporator(s) and sets out your business purpose. The bylaws generally define your corporation’s purpose and set forth the rights and powers of shareholders, directors, and officers. It may also include information regarding the time and place for meetings, the title and compensation of officers, and rules regarding the approval of things like contracts, loans, and stock certificates. Once you have these documents, you will want to establish a corporate records book to keep all of your corporate documents in one place.

The attorneys at Fisher Stark Cash have the knowledge and experience to assist you with every step of the incorporation process. In addition to helping you file the proper documents for incorporation, we can help you with the registration of any alternate names, assist you in obtaining a Federal Employer Identification Number, and draft the articles of incorporation and bylaws for your corporation.

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