Incorporating a business is a relatively straightforward, fairly inexpensive process.
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by Jonathan Layton, J.D.
Jonathan Layton is a graduate of The College of William and Mary, where he majored in English literature. While...
Updated on: January 31, 2023 · 3min read
Whatever your reason for wanting to incorporate—whether it's for liability protection, tax benefits, improved access to capital, ability to issue stock—setting up a corporation isn't difficult.
In fact, the process can be accomplished in just three easy steps.
The first step in the incorporation process involves selecting a name for your corporation. Typically, the "catchier" and more memorable your business name, the more likely it is that consumers will choose your company's goods or services over other competitors.
Using keywords associated with your main product or service in your business name is also a wise maneuver, and will make your company easier to find online.
After you have selected a unique name for your corporation, you'll need to conduct a business name search through the secretary of state, department of state, or division of corporations—or other comparable governmental agency that performs business name searches in your state.
The purpose of the name search is to ensure that you haven't chosen one that's already being used because you can't copy corporate names.
Assuming the name search doesn't reveal any overlap, you'll want to reserve the name so that no other business entity claims it. Ordinarily, the secretary of state will hold your intended corporate name for a period of about 120 days if you pay a fee.
Most states require every business entity to appoint a registered agent and list the registered agent with the secretary of state or division of corporations. A registered agent—also known as a "statutory agent"—is an individual over the age of 18, a company, or other business entity authorized to receive notices, official mail, and legal documents, and to accept service of process on behalf of the corporation in the event a lawsuit is filed against the business entity or organization.
The registered agent must have a physical street address in the state where the principal place of business of the entity is located.
If the business is physically located in the state where the entity was formed, the business itself may serve as its own registered agent. However, if the registered agent is other than the entity itself, the registered agent must be a representative authorized by the business