How to Start a C Corporation

 
 
How to Start a C Corporation
 
 
 

It's business time!

To comply with corporate law, you must register your business as a certain entity in order to engage in all the fun (and not so fun) activities that a business is legally permitted to conduct. 

 

Since your business’ entity type will affect a slew of factors such as taxation rate and liability, do your homework and spend a little time figuring out what type of entity you want your business to be.

One such entity type is a C corporation --  a corporation whose owners/shareholders are taxed separately from the company itself. Although the company and individuals have to separately pay taxes, the flat tax rates and and special deductions make C corp status a desirable one.

Here’s what it takes to register your business as a C corp:

 

Register with the state government

The process of creating a C corporation abides by state law. You must first file your business name and the Articles of Incorporation with your secretary of state.

The Articles of Incorporation will provide the government important information about your business, so youʼll need to choose a registered agent, principal place of business, and business purpose. Keep in mind that all of this information, including your address, will be public.

You’ll also need to know how much stock the corporation will issue. This is a tricky issue that can affect funding and how much you’ll pay in taxes, so you may want to tap an attorney to help you decide.

Afterwards, you will pay a filing fee which varies state by state.

 

Create company bylaws

Since all the information recorded in the Articles of Incorporation is made public, you want to make sure the language is ironclad. Same goes for written bylaws.

Bylaws are the organizing documents for your company and document details such as how much stock is issued, how to sell your stock, who the board of directors consists of, and how the leadership makes decisions. If you have a lawyer helping out with the Articles of Incorporation, you might as well ask them to help you out with creating the bylaws!

 

Congrats! You have an official company!

If you need help along the way, Sproutt Law is more than happy to give you a helping hand. We can figure out what type of company is the best fit for you, decide where you need to register, and complete all the paperwork on your behalf.

     
     

     

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