How do I Incorporate A Company in the USA?
The question, how do I incorporate a company in the USA is one of the frequently asked questions in the business industry. However, corporations are only centralized into the commerce sector. Non-profit organizations, charities and guilds can also be transformed into corporations. Opting for a corporation would earn you various advantages. One in particular is protection of your personal assets. How do you incorporate a company in USA?
What is a corporation?
Before anything else, one must first understand the concept of corporation in order to determine if incorporating a group of individuals is imperative. Knowing the fundamentals of incorporation is also an important factor to understand.
First is incorporation. Basically, incorporation can be simply defined as an act of forming a corporation or company. As you know, a corporation is a group of individuals that is recognized as a single entity by the law. Meaning, the state or government provides and mandates the same roles, rights and responsibilities to a corporation resembling any citizen of the state. Through this process, the company can create and abide to agreements and assume liabilities.
Creating a company name
In creating your company name, be reminded that it is composed of three portions. First is the distinctive element. As the term implies, it is the part of the company name that distinguish it from other companies or businesses.
Next is the descriptive element. This part of the company name is the generic term of your corporation or business. A classic example is the term bakery if you are a bread manufacturer. Some corporations prefer not to include this part which is also acceptable.
Last is the legal ending. This part signifies the legitimacy of your company. The most common legal endings used in the USA are incorporated (Inc.), limited (Ltd.) and corporation (Corp.).
How to incorporate a company?
To answer your question, how do I incorporate a company in the USA, the first thing you need to do is to understand and file the letters of patent. What is this? In the USA, this signifies the primary policies that govern the administration of a company. This is filed in the Office of Secretary of your companys state. In this process, you will also state your intentions and purpose of forming the corporation, your primary location, the type of stocks and the amount of shares.
Typically, a bylaw is also filed. It contains an outline of all your executive details. A classic example of these details is the dates of shareholders meeting. Another is the method of how information is disseminated in special occasions.
Once you have filled the letters of patent, a registration fee should be paid. This would vary from $25 to $1,000 depending on your states regulations. Nonetheless, registration fees and taxes should be paid in order for your company to be legit. The advantage of corporate taxes is that it is lower compared to citizens taxes.
These are the important steps that you will need to do in forming a corporation. To learn more about the legal benefits of incorporation, you can browse at your favorite search engines. With that, your question, how do I incorporate a company in the USA is answered accordingly.