Incorporating a business means turning your sole proprietorship or general partnership into a company formally recognized by your state of incorporation. When a company incorporates, it becomes its own legal business structure set apart from the individuals who founded the business.
While incorporation requires more paperwork and expense than a sole proprietorship or a partnership, it offers important legal and tax advantages.
- Protect Your Personal Assets.
- Have Easier Access to Capital.
- Enhance Your Business’ Credibility.
- Perpetual Existence.
- Gain Anonymity.
- Other Considerations.
These are some of the main documents you’ll need to include in your corporate records:
- Copy of the articles of incorporation.
- Copy of the corporate bylaws.
- Minutes of shareholder, board, and annual meetings.
- Stock transactions.
- Annual reports.
- Business loan documents.
- Copies of contracts that the company enters into.
Filing Articles of Incorporation:
Secretary of State Offices usually charge $100 to $250 for administrative and filing fees, depending on the state in which the business is incorporating. You can obtain your specific state’s filing and fee information by visiting your Secretary of State’s Web site.
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