CORPORATION
Separate Entity from the Owners
A corporation is a legal entity that is separate and exclusive of its owners.
Unlike a sole proprietorship or partnership, a corporation offers more opportunity to borrow from banks and take advantage of larger tax exemptions.
OVERVIEW
Get an overview of the basic steps needed to start a corporation
PROS & CONS
Learn the pros and cons of starting a corporation
OTHER STRUCTURES
Learn more about other business structures
STEPS TO START
A CORPORATION
Select a Corporate Name
Draft and File Articles of Incorporation
Create Corporate Bylaws
Draft a Shareholder's Agreement
Maintain Corporate Minutes
Issue Shares of Stock
Obtain an Employer Identification Number
Select a Tax Election
Obtain Required Licenses and Permits
Read entire article:
"How to Start a Corporation: A 9-Step Guide" | Quickbooks/Intuit
PROS & CONS
OF STARTING A CORPORATE ENTITY
PROS
The Positives
PROTECTION FROM LEGAL LIABILITY
Once incorporated, owners have limited liability for the corporation's business activities, debts and expenses.
MORE ATTRACTIVE TO INVESTORS
Corporations can sell stocks, making the venture more attractive to investors
A POWERFUL BUSINESS STRUCTURE
Corporations have tools like employees, management, directors and share holders. Levels of the structure help run the entire company as a whole.
LARGE GROWTH
Corporations can hire a larger group of employees and offer stock options which helps the company profit at a larger, quicker rate
CONS
The Negatives
TIME & COST
The time it takes to start and fund a corporation is a massive undertaking
REGULATIONS
Corporations are required to have meetings with directors, deal with extensive amounts of paperwork and adhere to regulations that require professional legal expertise
HOW TO CHOOSE A NAME
Learn techniques to choose an effective business name
DESIGN & COLOR
Learn more about the emotional dynamics of color and how it impacts business
UP NEXT
Learn more about starting a Limited Liability Company (LLC)