What Is Involved In Company Incorporation?

Company incorporation is simply the development of the formations of a new corporation. This corporation can be a business, a charitable organisation (often referred to as a non-profit organisation) or even a sporting club.

The process that is involved in the incorporation of a company differs from country to country in accordance with State and Federal laws. Therefore when seeking to establish a company it is recommended that you consult with your appropriate State office. The following information should be used only as a guide.

These are the general steps required in company incorporation.

Deciding on your Business Name

You need to develop a name for your corporation, along with other essential business details, such as the address. It is important to remember that the name of your corporation is a reflection of your establishment. Therefore it can be considered a form of advertising, and as such needs to describe your product/service and to attract the necessary clientele to sustain your company.

Important things to remember - the name selected cannot already be in use of another corporation, and it must apply with the relevant laws (which vary from state to state). It must further contain relevant language, and must end with a 'legal element' (Ltd. Inc. Corp.)

The name can often be a frustrating stage in company incorporation, however it should not be rushed and it is an important business strategy that is a factor in the success of your corporation.

Your Business Location

Where will your corporation be located? You may chose to operate a toy store from your garage, however this could greatly diminish the future success of your company. Therefore it needs to be relevant for what you are offering to the consumer. Success of a business is often heavily linked to the location. This can be as simple as what street your corporation will be located, or a more broad approach would be the suburb. In continuing with the toy store analogy, establishing the store in an area with a high percentage of young people, would increase the rate of success. This is a known business strategy. If your corporation has numerous branches, then it is a good idea to select a specific location as headquarters.

Management and staffing your business

Before commencement of business strategy, and other details, already selected should be the directors of the company. They should be qualified, and trustworthy, and able to perform the duties that will be required of them.

Once the overall management is established, it must be decided who will take on the duties of the day to day running of the business. Often is can be two conflicting to have several people charged with this responsibility.

Once this has been decided, an evaluation of the necessary staff is required, and training may need to be sought, so that the staff are proficient with their duties.

Articles of incorporation and file.

After the above details have been established, the next stage is to file the 'articles of incorporation' with your specific state's relevant legal office. Articles of incorporation may also be known as 'articles of organisation' or 'certificate of formation'. The forms require basic information such as tax details and banking details. They can often be downloaded from selected legal websites.

While this process is relatively simple, unfortunately it is not without costs. When filing the Articles of Incorporation, there are usually some fees associated with it. These are once again state dependant, however range from between $100- $800.

This is classified as the most important step in the Incorporation of a company.

Once this has been done, the application should then be processed.

Important things to remember- corporate share details, restrictions on corporate activities, any other information that should be issue with articles.

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