Free Tips and Instructions on Business Law Procedures

4. Creating a Corporation

Step 1: Fill out the Articles of Incorporation online

Step 2: Print. sign, and mail the form with a $100 filing fee to the Office of the Secretary

of State.

Step 3: Your corporation must have bylaws

Step 4: The corporation must have an organizational meeting of shareholders where they elect a board of directors. The board of directors must meet and elect officers.

Notes: The corporation may elect to be a Subchapter S corporation which is taxed only at the individual level.

• The corporation needs a federal employer identification number
• As a separate entity, your corporation needs to have its own assets. The corporation must have a separate bank account and should hold title to its assets in its own name. Under no circumstances should the personal funds, assets, or accounts of members be mixed with those of the corporation. Similarly, corporation funds should never be used to pay personal expenses of members, to make personal investments for members, or for any other purposes not related to the corporation's business.