How to Be a Corporation
The first step in learning how to be a corporation is to file the Articles of Organization with the local or state government. You may need to file an application with your county or other jurisdiction first. You can find out how to be a corporation by visiting the local government office and searching online for “articles of organization.” Be sure to find out the steps to becoming a corporation.
There are many ways how to be a corporation that you should look into before filing the Articles of Organization with your county or state. One way is to consult with a business lawyer or the SBA (Small Business Association) before starting your corporation. If you are not sure how to be a corporation, you should still call the small business association office and see how to be a corporation there. The SBA can help guide you through the process and give you helpful advice. Another way how to be a corporation you can use is to consult with your state attorney general or your state treasurer.
The Articles of Organization of a how to be a corporation you will fill out must include information on how the corporation will be organized, how funds will be invested, how the corporation will carry on its business affairs and how the board of directors will make decisions. You will also have to include notice of meetings, how the corporation is registered and any rules of the corporation. This information will help the court or other entities read the document properly. You can be fined for including incorrect information in the Articles of Organization so it is important to get it right the first time.
The Articles of Organization must also contain what is known as the Operating Agreement. This is the portion of the how to be a corporation which describes, among other things, how the corporation will be managed and who has power to make decisions. This is again important and if not carefully constructed could cause irreconcilable differences between the members of the corporation. Be sure to discuss this with all prospective investors before making your decision.
After all of the Articles of Organization have been composed the next part of the document is the Sub-Articles. These are appendices and essentially add information to the Articles of Organization. They may address disputes that arose between the members of the corporation and their concerns. It must also include information regarding the powers that be possessed by the corporation and what the members of the corporation must do when the Articles of Organization are approved.
The last part of the how to be a corporation you will need to fill out is the Name Certificate. This is an official verification that the corporation is indeed a real entity and not simply an idea or some person’s hobby. It serves as proof that the corporation has the proper legal rights and can legally operate. If the corporation fails to have its name certified then it is no longer legitimate and cannot do anything legally.
The how to be a corporation you will need to create a Board of Directors. This consists of the members of the corporation such as shareholders, members of the community, and any other individual or entity that you wish to be a member of the corporation. The members must also agree in writing on how to divide their power among themselves. This is the most important aspect of how to be a corporation because it spells out how the corporation is run and how it will be operated for the benefit of its shareholders.
Lastly, when how to be a corporation you must create a Memorandum and Articles of Organization. This is what formalizes the Articles of Organization so it can be legally enforced. The Memorandum is also the place where any amendment to the Articles of Organization can be inserted. The Articles of Organization can be changed by the corporation and all shareholders must agree to it before it is officially changed. Once all of these procedures are completed then you are formally established as a corporation and must operate legally and ethically.