How to Start a Corporation
An incorporated company is one in which the owners are given stock shares that reflect ownership. While stock shares are traded publicly, most companies begin as private and often remain so for the duration of their existence.
1. Selecting a Business LocationThe first step in forming a business corporation is to decide on a location. A variety of factors will influence the location of your business. These factors include your target market's location, business partners, and personal preferences. Aside from that, you'd have to think about the various costs, benefits, and regulations set forth by various government agencies. As a result, before deciding on a location for your business, you should consider the following factors.
Choose a Company NameYour corporation's name must adhere to the regulations of your state's corporation division. Specific rules should be obtained from your state's office, but the following guidelines are generally applicable:
- The name cannot be the same as another corporation's name on file.
- The name must include a corporate designator, such as "Corporation," "Incorporated," or "Limited," or an abbreviation of one of these words (Corp., Inc., or Ltd.).
- Certain words, such as Bank, Cooperative, Federal, National, United States, or Reserve, cannot be used in the name because they imply an affiliation with the federal government or a specific type of business.
The corporations office in your state can tell you how to find out if your proposed name is available for use. You can often reserve your corporate name for a small fee for a limited time until you file your articles of incorporation.
In addition to adhering to your state's corporate naming regulations, you must ensure that your name does not infringe on the trademark of another company. When you've found a legal and available name for your business, you usually don't need to file it with your state. Your business name will be registered automatically when you file your articles of incorporation.