Ask A Lawyer: What are the basic steps in organizing a corporation?
ISBA member Cory White outlines the basic steps in organizing a corporation.
A corporation is organized through the filing of the articles of incorporation with the Secretary of State. That filing can be made online through the Secretary of State's website. The Secretary of State’s website provides you instructions as how to file. The Secretary of State requires certain provisions be included in the articles of incorporation in order for filing to be effective that information is also located on the website. The filing fee for a corporation’s articles are $150. It is important to know that after you organize your company and the company will be deemed organized upon the filing of the articles of incorporation after you’ve organized the company A corporation has to pay yearly annual franchise tax. An explanation of that tax can also be found on the website. Finally it may be prudent to have bylaws along with your articles incorporation these two documents together Provide the fundamental rules, regulations, and obligations for the company its directors its shareholders and managers. Its important to have these in place so that all the parties involved in business know their rights and obligations. Finally, The bylaws of the corporation cannot contradict a conflict with the articles of incorporation to be sure to check the article of incorporation prior to drafting of bylaws to make sure nothing contradicts with the articles.
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