Chapter 4 of 7
Module 4.1: Step-by-Step Guide to Forming a C-Corp
Forming a C-Corporation involves a more formal process than creating an LLC, with additional requirements for corporate governance.
The process includes selecting a unique business name, filing Articles of Incorporation, creating corporate bylaws, appointing a board of directors, and issuing stock to initial shareholders.
Key Points:
- 1. Choose Your Business Name: Ensure the name is unique and complies with state requirements.
- 2. File Articles of Incorporation: Submit to your state's Secretary of State office.
- 3. Create Corporate Bylaws: These outline how the corporation will operate.
- 4. Appoint a Board of Directors: Required for all C-Corps.
- 5. Issue Stock: Distribute stock to the initial shareholders.
Module 4.2: Articles of Incorporation and Bylaws
The Articles of Incorporation is the primary document filed with the state to create your corporation. This document includes basic information about your company, such as its name, purpose, and registered agent.
Corporate Bylaws, while not typically filed with the state, are essential internal documents that outline the rules and procedures for running the corporation, including how directors and officers are elected, how meetings are conducted, and how corporate decisions are made.
Module 4.3: Required Documents and Costs
Setting up a C-Corporation requires several documents and comes with various costs that vary by state.
In addition to the Articles of Incorporation and Bylaws, you'll need to obtain an Employer Identification Number (EIN) from the IRS, which is required for tax filings and opening a business bank account.
The costs of forming a C-Corporation typically range from $100 to $1,000, depending on your state and the complexity of your business structure.
Key Points:
- Articles of Incorporation: The primary document filed with the state.
- Bylaws: Internal rules for corporate governance.
- E.I.N. from the IRS: Required for tax purposes.
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