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Legal Forms for Starting a Business Tips
RocketLawyer.com Tip: Do it yourself Incorporation
Instead of hiring an attorney to draw up the legal documents necessary to incorporate, you can purchase the legal forms for incorporation online and do it yourself.
The standard set of legal forms for a do it yourself incorporation normally include:
Articles of Incorporation or Certificate of Incorporation
Corporate Bylaws
Minute Forms and Book
Notice of Organization Meeting of Incorporators and Directors
Notice to Shareholders of Annual Meeting
Stock Certificate
Waiver of Notice of Meeting of Incorporators and Directors
When choosing to do it yourself with incorporation legal forms, make sure you have adequate information to help you fill out each form. Rocketlawyer.com can help you incorporate your business with fully customizable legal forms and extensive help.
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Business Registration Requirements
When you form a new business, regardless of the formal structure for your organization, you are going to have to complete the business registration forms required for the municipality or jurisdiction in which your company is going to operate. Business registration form requirements vary greatly from one area to another. Most cities, counties, and/or states have business registration form requirements.
The primary reason that local and state governments require new business registration forms is to determine and manage the organization’s tax filing obligations. The information provided on business registration forms determines which types of taxes are applicable.
Depending on the type of business and or requirements of the local area, business tax obligations may include: sales tax, use tax, withholding tax, unemployment tax, vendor’s use tax, city tax, county tax, etc.
In addition to registering with the appropriate state, county, and/or city government, businesses must also register with the Internal Revenue Service (IRS). Those businesses that will have a payroll will receive a Federal Employer Identification Number (FEIN), which then becomes the tool by which federal tax liabilities are tracked and applied.
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RocketLawyer.com Tip: Choosing a Business Structure
When you are starting a business, you must choose a business structure. You can select sole proprietorship, partnership, corporation or limited liability company (LLC).
Each business structure has different regulations, fees, liability issues and tax structures.
Sole proprietorship and partnerships are the easiest structures to set up. However in sole proprietorship and partnerships, if the company is sued, the personal assets of the owners can also be at risk. These owners are also personally responsible for the business debts.
Corporations and LLCs both provide personal liability protection to the owners. However the main difference between a corporation and a limited liability company is that corporations can issue and sell shares of stock, LLCs cannot.
Owners of sole proprietorships, partnerships and LLCs all need to report their share of the business profits or losses on their personal income tax returns. These types of owners pay taxes on the company's net profits regardless of the amount of money they may take out of the business.
On the other hand, owners of a corporation only pay personal income tax or their salaries or dividends from the company. The corporation also pays tax on the profit left in the business at year end. Taxes for a corporation are a little more complicated than the other types of business structures.
If you are looking to increase your liability protection and do not need to sell stock, forming an LLC may be right for you.
To get business legal forms for forming a corporation or learning more about business legal issues, please visit RocketLawyer.com.
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How to Apply for a Business License
Applying for a business license is usually the first step that a new business owner will take. When you decide to open a business, you must receive a license to operate your business within the city or county where it is located. Each municipality has its own business license forms, and it is important that you use forms specific to your jurisdiction. To find out the specific business license requirements for your area, contact your city or county License Commissioner’s office.
To complete your business license forms, you will need to provide basic information about the company you plan to operate. Information typically required for business license applications includes:
Name(s) of owners
Name of the business entity
A description of the profession or type of business activity
Physical address of the business
Mailing address for the business Business telephone number
Home address for one of the owners
Home telephone number for one of the owners
Business licenses have to be signed and turned in to the appropriate local government representative along with an initial license fee and any other applicable required fees.
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RocketLawyer.com Tip: Forming a Corporation
To form a corporation, you need to begin by contacting the Comptroller of Public Accounts in the state in which you are incorporating. This office will inform you of the filing fees involved and forms you need to file in order to create a corporation.
Additionally, you will need to choose a business name and decide if you are going to have stockholders. You must also spell out the duties of stockholders and corporate officers in corporate bylaws.
Because of all the paperwork involved in forming a corporation, you will need several business forms, including Articles of Incorporation, Corporate Bylaws and several others.
At Rocket Lawyer, you can create and customize these forms, print them out and even save them online for safekeeping. Visit RocketLawyer.com for more details about corporate and other business forms.
