As your small business grows and expands, you may take on a partner or find investors to get funding for your company. As such, you may need to form a corporation for legal and tax purposes.
Forming Corporations
While registering a corporation is fairly easy to do, there are several steps that must be taken to incorporate a business.
Choose Unique Business Name
When you are coming up with a list of business names, a corporation attorney in Santa Barbara, CA can write the necessary letters to have their availability checked with the state.
File Articles of Incorporation
The articles of incorporation should include the business name, the corporation’s purpose, the street and mailing address, the name and address of a representative for service of process, and the number of shares the corporation will be allowed to issue.
Name a Registered Agent
A registered agent is someone who is willing to accept legal papers on the corporation’s behalf if they’re named in a lawsuit. Almost anyone can assume this responsibility if he or she is a resident of the state or a corporate agent who has filed with the Secretary of State’s office. Many corporations appoint a Santa Barbara corporation attorney to serve as their registered agent.
Create Company Bylaws
An organizational meeting needs to take place and the corporation’s bylaws also have to be written. A corporation attorney can help review the bylaws to make sure they are legal and don’t leave the company open to potential lawsuits.
Obtaining Business Licenses
To do business in a city and state, the corporation must obtain business licenses from both. This is done by filling out paperwork and paying the appropriate fees.
There are other steps to take, such as opening a bank account and starting a record book, but a corporation attorney can help make sure these steps are done correctly.
