How do I incorporate my business?

Every state has its own requirements for forming a business entity, but the process usually begins with determining name availability and then reserving a unique name for your company. After that, articles of incorporation (or a certificate of incorporation, depending on the state) are prepared and filed with the state. When the entity is formed, bylaws governing the conduct of its affairs are adopted at an organizational meeting. Other actions taken at the organizational meeting, of which minutes must be kept, include electing directors and officers, establishing bank accounts, and issuing corporate stock. Some states require the filing of an information statement within a few months of incorporating. See our article on What It Means to Properly Form a Corporation for more information. It is important to know that if all of the proper steps in the formation process are not followed, then the “corporate veil” may be pierced and you are putting your personal assets at risk and thereby losing one of the principal benefits of incorporating. As a result, we urge you to obtain professional assistance when incorporating your business. See Why Every Entrepreneur Needs Both a Lawyer and a CPA to Form a Company.