How does a business become incorporated? Under the law, a business can be incorporated either by the owner or by the signor of the company. If the signor is not the same as the company, then the business must register its name under its own name. Otherwise, it will be considered an unmanaged partnership and the owner or signor of the company will not benefit from the benefits that come with being a corporation.
The best way to incorporate a business is to use the informal means available. For example, a sole proprietorship is an easy way to incorporate. There must only be one signor and the business can be incorporated simply by changing the name of the company to sole proprietorship. To incorporate using this method, the office must first be established by filling out the appropriate forms. Then, after filing all the required paperwork, the office will state its status and that it is registered under its own name. It will also issue a license to operate.
Another option for how does a business become incorporated is to use a qualified attorney. This person will file all the necessary paperwork and then file it with the secretary of state. If all the required paperwork is filed and the company is organized under the correct name, the business will have the right to operate legally. Then, the corporation’s officers and shareholders will vote and agree as to how the company will be incorporated.
However, many small businesses do not hire legal counsel to help them incorporate. Instead, they simply use the simplest procedures to incorporate their business. Sometimes, all they have to do is buy an instrument of trust, file Articles of Organization and print a duplicate of the original articles of incorporation. When they are approved, the Articles of Organization have been filed with the secretary of state. In this way, how does a business become incorporated starts with the idea.
There are other ways to get how does a business become incorporated but they involve a higher cost. For example, when a business becomes a corporation, all state agencies require a registered agent who acts as the company’s legal representative. This person also files any necessary paperwork and makes sure that all appointments are made.
It may be easier on how does a business become incorporated if the company is a sole proprietorship or a partnership. If the business is a sole proprietorship, all business assets automatically belong to the proprietor. The only thing left is to register the business for operation and open an account. The only assets that the business owns are those owned by the owner. Therefore, there is no need for a registered agent and all appointments for meetings are made by the office manager.
When a business is a partnership, the partners each have their own business assets and liabilities. These businesses do not need to have an office so all appointments can be made at the office. However, the partner with the office needs to file all papers to the secretary of state and he or she needs to make sure that all meetings are held in the same building. There are different ways how does a business become incorporated but the one most commonly used is the method used by corporations.
In summary, how does a business become incorporated depends on the type of business. There are many ways how a business is incorporated but the best way is to incorporate through a business intermediary. To learn more about how to incorporate a business, contact an experienced business lawyer. He or she will help you decide on the best option for your business.