It is often better to form a corporation or a limited liability company than a sole proprietorship. It is important to protect your personal assets from any business dealings. If you choose to start a corporation or LLC you will need to hire a lawyer for the filing of the business agreement. A tax lawyer will help you to file your employer identification number and refer you to a tax accountant.
Instructions
1. Select the name of your company and the kind of company you want to start. Goods and service businesses are normally corporations or Limited Liability Companies. Mom and pop luncheonettes, insurance, hair salons and other family-owned businesses are mostly sole-proprietorships.
2. Choose the state you want the headquarters of your company to be. Many times a different state is chosen for corporations and Limited Liability Companies because of tax incentives. It is easier to file corporation and LLC papers in the state where you are.
3. Search for people who fill in the voids where your weaknesses in your business will lie. Choosing a management team is crucial to the success of your business.
4. Assemble an advisory board that will give you respectability and credibility in the business world. Search for the most talented and qualified people in your industry who have a solid reputation in their field.
5. Examine a variety of corporate kits that will eventually represent your company. Corporate kits include corporate seals, stock certificates, sample bylaws and minutes and stock transfer ledgers.
6. Designate who you want as a registered agent. A registered agent is a company that can maintain offices in all fifty states and the District of Columbia.
7. Realize that the company you form today may not be the company that you have tomorrow. Change in the structure of your company is inevitable.
