The Proper Steps to Incorporating a Family Business!
The most valuable step to starting a family business is to have protection from lawsuits and loss of personal assets
Here are the general steps to consider when incorporating a small business with your local governmental agency:
- Step One: The formation documentation to incorporate a business is normally called the Articles of Incorporation or Certificate of Incorporation, it depends on the governmental agency terms used.
- Step Two: The fees for registering a business as a company runs from $50 to $400.
- Step Three: The normal waiting period to have the formation documentation approved by the governmental agency varies from four to six weeks (non-expedited services). But, for an extra fee a business can have their paperwork approved within a few days or even a few hours (expedited services). Now in many countries and states, you are able to fill out the formation documentation online and this speeds up the approval process.
- Step Four: Have to disclose certain information in the incorporation documentation such as the following:
- Company Name.
- Business of purpose both general purpose and specific purpose.
- Registered Agent.
- Incorporator- the person or company who is incorporating the business.
- Step Five: Must have a registered agent who is the individual who can accept service of paperwork for the company.
These are just some general steps to take when deciding to incorporate your small business as a legal entity in your particular state or country. It is advisable to consult with your attorney, accountant, and business consultant to determine the best incorporation form for your family business.
The third article in the “How to Properly Set up a Family Business” Series.
Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience. Donya is also a public speaker and aspiring author. She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals. She is owner of Family & Community Mediation and Business Consulting (FACMBC) and Powerful Biz Woman (subsidiary of FACMBC). Both are based in Baltimore, Maryland and were established in 2013. Services provided by FACMBC: Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance. She is also a contributing writer with the Maryland Daily Examiner Newspaper and the Leadership Girl Newsletter. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle.
If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: firstname.lastname@example.org; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; www.linkedin.com/in/dzbusconsultantandmediator; www.conflictresolutionandconsulting.com; www.facebook.com/PowerfulBizWoman