Starting your own business is an exciting prospect; but the legal aspects can often be daunting and overwhelming. Those starting a new company must first decide what business format is best suited to their needs. The traditional corporation format is the optimal choice for many as it grants company leaders broad legal protections; but, corporations have ongoing legal responsibilities such as registering with the Secretary of State and complying with certain continuous filing responsibilities annually.
Those embarking on a new business venture to form a corporation should consider seeking assistance from the skilled team of Kernersville corporation formation attorneys at Apple Payne Law to help navigate the steps of forming and registering their corporation without getting overwhelmed by the legal intricacies. The knowledgeable team of business formation attorneys at Apple Payne Law will explain the benefits and drawbacks of using the corporate structure for their business entity; will draft articles of incorporation and bylaws for your corporation, will help select a board of directors, and prepare other necessary legal paperwork to make and keep your corporation in good legal standing.
Businesses take many forms – partnerships, sole proprietorships, limited liability partnerships, and corporations are just a few types. Registering your business as a “corporation” makes it a “company”, but how do you know which corporate structure is right for your small business?
To determine whether your business should incorporate, you must consider the benefits and drawbacks of each corporate structure. For example, the corporate shield protecting company directors and shareholders is a significant benefit; a corporation is considered a separate legal entity regarding taxation and other financial matters, such that even if the corporation goes bankrupt, owners’ and shareholders’ personal assets cannot (usually) be seized to pay off the company’s debts.
However, this corporate protection has drawbacks to consider, such as high corporate tax rates and the complex paperwork corporations must submit to the State, both at their inception and every year thereafter. The experienced corporate formation attorneys at Apple Payne Law in Kernersville will help business founders determine which corporate structure is best for them and advise them as to any available alternatives.
Incorporation through the registration process is the a step in forming a company, and a company must register with the North Carolina Secretary of State’s Office before commencing operations pursuant to North Carolina Statute § 55-2-03. Because a company cannot begin making money until it registers with the State, it is crucial for business owners to start the registration process as soon as possible, as there are several essential steps.
First, a business must choose a unique name with a corporate designation using some variation of the terms: “corporation”; “incorporation”; “incorporated”; “limited”; and/or “company”. The business name need not be totally novel, but must not be otherwise used by any business in the same state it operates in.
Second, a business must draft and file “Articles of Incorporation”. “Articles of Incorporation” provide basic company data and information about the main business office and incorporators.
Third, corporations are highly advised to draft bylaws concerning their corporation’s goals and day-to-day operations, because bylaws give the company a better presence in the business community and strictly define all officers’ and shareholders’ roles and privileges. Apple Payne Law in Kernersville has a team of is accomplished corporate formation attorneys ready to guide small businesses through the process of effective corporate creation to help their business thrive under a new structure.
To be successful, a business must select what type entity best fits its goals and needs. Forming a corporation is the best choice for many because of the corporate protection against legal liability and/or future financial losses.
Retaining a corporation formation lawyer, like the competent team at Apple Payne Law in Kernersville, to take the lead in forming your corporation ensures your corporation meets all legal requirements and includes well-drafted and precise articles of incorporation and bylaws, establishing and clarifying the rights and obligations of all corporate parties. Speak with a seasoned attorney at Apple Payne Law today to get your corporation established, operational, and profitable as soon as possible.