The advances in technology in the last two decades have been tremendous. Most of what we did manually a few decades earlier is possible now with the click of a button. Access to information also has made fantastic strides. Information about A to Z is available on the Internet or comes in concise digital formats in CD’s that are easily readable and understandable. The layman is empowered by this. Business form software for any application or use is readily available. We have to take advantage of these advances and developments. You may use Business software packages for incorporating your business. Most of the business form software packages have all documents and forms that you may need in your whole business life.
As to why incorporate, the answer lies in your business. If you have grown beyond your original estimates and your business volume has achieved critical mass, it is time for you to reconsider your business plans. Every business has risks associated with it. The risks grow in proportion to the volume of your business. If you are carrying all that risk of business liability on your person, a small misstep may wipe out all that you have worked hard at for years. By incorporating your business you limit your personal liability to the business obligations. Incorporation is necessary to grow also. If you need to attract capital to expand your business, incorporation is a good move. Investors are comfortable in investing in corporations because the only risk they assume is the loss of capital.
The incorporation of your business is not a tedious process and can be done easily enough. Corporations are formed under state laws and you have to comply with your state’s rules and regulation for incorporating your business. You have to file an Articles of Incorporation containing critical information regarding the corporation’s basic purpose and organizational structure with the state agency dealing with corporate registrations. Many states issue a Certificate of Incorporation evidencing the legal existence of the corporation. The Articles of Incorporation is the main document stating all that is important about your business such as the purpose for which the corporation was formed, the name and address of the incorporator(s), proposed directors, principle place of business, Intended share capital etc. After incorporation you need to draft and adopt the bylaws of the corporation in the first board meeting of the directors. You may also adopt a corporate seal for your corporation though most of the states do not mandate a corporate seal.
