Top 10 Things to Do After Incorporating

By Jen Mathews, The Company Corporation®

1. Issue stock or membership certificates. Corporations issue shares of stock to owners in exchange for an investment of money, property, or services rendered. Likewise, an LLC issues membership certificates to owners of the company.
2. Draft bylaws or an operating agreement. Newly formed corporations must create bylaws. This document describes the corporation's management structure and the responsibilities of directors and officers. Likewise, LLCs draft operating agreements to outline their management.
3. Designate the company's management. Corporations appoint directors and elect officers to manage the business. The individuals who manage an LLC are called "managers." The owners of an LLC are called "members." The owners may serve as managers, or they may hire outside representatives.
4. Obtain applicable business licenses. To operate a company successfully, business owners must comply with all government licensing requirements. Many state, county, and local government offices require corporations to obtain licenses and permits before beginning business.
5. Register in additional states, if necessary. Corporations and LLCs typically register with each state in which they do business. This means that, if your company operates outside the state in which it formed, you may need to register in additional states.
6. Maintain a minute book. Successful companies maintain their records by having directors or members regularly review corporate paperwork for accuracy. Companies can store minutes and other business records in a minute book.
7. File amendments, if required. Companies typically file amendments to change their business name or address. They can also amend other information that appeared on their state formation document, such as the business purpose or names of initial directors or members.
8. File "Doing Business As" names, if required. To operate under an alternate name, government offices require companies to register DBA names. Some states also refer to a DBA as a fictitious name or trade name.
9. Maintain a Registered Agent. Almost every state requires a corporation or LLC to maintain a Registered Agent. The agent receives important legal documents and forwards them to the company. The Registered Agent must remain available during all business hours.
10. Hold annual meetings. At least annually, corporations should hold meetings of directors, officers, and shareholders. We also recommend that LLC members or managers hold an annual meeting.

The Company Corporation is a service company. We do not provide legal or financial advice. Our services and the articles contained in the TCC Business Builder e-newsletter are not the substitute for advice from a licensed attorney. We suggest that you consult an attorney or accountant for professional legal or financial advice.

©2008 The Company Corporation - All rights reserved.