Essential Steps To Follow During Incorporation Of Your Company
Starting a company in Texas or anywhere else requires one to complete some important steps and also make some essential decisions. One of the major decisions you will have to make for your firm or business is deciding how you are going to structure it. The structure depends on the business specific needs and the location. If you have already decided that a corporation will be the structure of your business, then you need to follow the following steps to be incorporated.
Choose The Name And Structure Of The Business
The best name for your business should be in line with what your business hopes to accomplish or the need it hopes to fill. It should also target the audience you wish to reach. The name should also be easy to remember and understand. Remember to check with the Texas corporate filing office and the registrar if the name has already been taken by someone else. It is always advisable to have an alternative name just in case your first name is already taken.
Select The Corporation Type
You can register your firm as an S Corporation, LLC or C Corporation. Each of the named types of corporations have their benefits and drawbacks. Ensure you are well aware of their meaning. You can hire a tax accountant to determine the tax responsibilities of the new business structure at the local and federal levels. You also need to determine the permits, licenses, registration, and certifications you need for your business at the local, federal and state levels.
Select The Directors Of The Company
Every corporation is expected to have a board of directors who are responsible for the effective running of the business. Make sure you select the right people as this decision can positively or negatively affect the success of the business. The names of the directors, their addresses, occupations, and ages are listed, and the list is provided to the registered together with other documents.
Choose The Type Of Shares For Selling To Stock Holders
Corporations are private companies, and thus in most instances, the availability of shares for purchase is only limited to the directors and some few other individuals.
Prepare The Memorandum Or Articles Of Association
These documents act as the company’s constitution. The memorandum of association is a short document that has a number of standard clauses and the director’s confirmation that they want to start the company.
The articles of association define the way the directors will run the firm on behalf of any shareholders. However, most firms use the private company model of articles of association which covers almost all the circumstances of a private firm. Both these documents will be filled during the registration of the corporation.
Fill Your Incorporation
After collecting all the information, it needs to be approved by the registrar. This consists of submission of the supporting documents, articles of incorporation and also providing the registration fee. You can send the information via online means by using the Companies House online portal or use the manual system of paper filing where you fill some form and send it together with the supporting documents to the company offices. You can choose to use the help of the attorney to help you successfully file the paperwork which makes the process quicker.
Wait For The Firm Formation To Be Approved
It is not advisable to start operating your business until approval is given by the Companies House. They will check the submitted information and approve. Online information is usually quickly approved. However, using the paper form of registering your corporation can take some additional time.
Get The Certificate Of Incorporation
Once the approval process is complete, the complete certificate of incorporation will be given to you in the office of States Corporate Filling. The certificate has the name of the firm, the business purpose, location and other relevant information that you had already provided above. The certificate is conclusive evidence that the corporation has met all the requirement regarding the formation and registration of a firm. A public company can commence business immediately after the certificate is offered, but for private companies, they have to undergo these two additional processes.
Hold Your Firms First Board Meeting
This is necessary to cover some formalities. It is advisable to hold the meeting a few weeks after the incorporation process is complete.
Set Up The Firm Books And Maintain Them
The company registers should be prepared and well maintained for future reference. Some of the registers include:
- Register of directors
- Register of secretaries
- Register of shareholders
- Directors’ residential addresses
- Register of share allotment among other documents.
As explained above, the process of incorporation can be a bit intimidating especially for those who do not have experience with the process. Seeking the help of an attorney can save you time and money. An attorney ensures that the process is undertaken quickly and swiftly due to the experience they have incorporating other companies. If you feel you need the assistance of an attorney in Huston Texas, do not hesitate to contact RunRex.com for all your incorporation legal advice and needs.