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Incorporation Requirements for INC

Date: 06/02/2016 | Category: Incorporation | Author: Petr Litavec

If you want to form a corporation in some of the US states, there are requirements which need to be fulfilled. There are some differences in these requirements between different states, but the following are common in all the states

Articles of incorporation

Articles of incorporation is the name of company formation document. It includes all the information state needs about your business. Everything listed in Articles of Incorporation is publicly accessible.

Corporate Name for INC

Be sure to think about proper company name. Naming your company has some rules. For INC, the company name has to include identifier of the type of company, for example word “corporation”, “corp”, “inc”, “incorporated”.

Make sure you name is unique and not being used by other business already. Also try not to use name which is deceptively similar to other company. When we are filing your company, we always check whether the name you want to use is still available. If the name is already taken, it could slow down the whole incorporation process. That’s why you should check the name availability before submitting order forms, so there is no time wasted afterwards. You can find link for “Name Check” in every state page of our site

Business Purpose of INC

You need to decide whether your business purpose is General or Specific.

General – accepted in some states, and it means you will do “lawful business” under your LLC

Specific – in some states you need to be more specific in explanation of services and products your company will offer to its customers

Registered Agent for INC

You need to have registered agent in each state where you are incorporated. Registered agent is a point of contact for all official paperwork from the state. It must be a physical address of the state you are forming in. We offer Registered Agent service in all 50 states

Number of authorized shares

The amount of finding capital is defined in the “Articles” – how many stocks you can issue and what’s their nominal value. After that you can’t issue stock with lower value than their nominal value. If the stock price is $1, then each shareholder has to put $1 into the company bank account. However the value for which the stock is sold is not limited, it can be more than $1.

If INC stated in Articles that it had 100 000 stocks, it doesn’t have to issue all of them. It can just issue for example 1000 stocks to one shareholder, and this shareholder will own 100% shares of the company.

You can’t issue more stocks than you have determined in the Articles. So when you are incorporating your company, you should think well how you want to handle the stocks in the future.

Company minutes

INC has disadvantage considering regular paperwork needed. Every year it has to organize Annual Meeting of Directors and Shareholders, where they decide on leadership team for the next year. When forming the company, company has to issue these minutes:

  • Minutes of Initial Meeting Of Directors – election of Executives after company is formed (President, Treasurer, Secretary, Director)
  • Minutes of Initial Meeting of Shareholders – election of Directors after the company is formed
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