Topic: Business Formation
Forming a Corporation to start or operate a business in North Carolina can be beneficial to the business owners in two important ways: 1) it can help prevent the business owner from paying too much in federal and state income taxes and 2) it can help protect the business owners from incurring Personal Liability for acts carried out by the business.
So what are the main steps in forming a North Carolina Corporation?
- You must select a Business Name and make sure that name is available for use in North Carolina.
- You must file proper and complete Articles of Incorporation with the North Carolina Secretary of State.
- Before filing the Articles of Incorporation, you must determine the number of shares the corporation will be authorized to issue (Issued Shares), the class of shares to be issued, who will serve as the Registered Agent, what will be the Registered Agent Address, and who will serve as the Incorporator.
- After the Articles of Incorporation have been filed, must must hold an Organizational Meeting.
- At the Organizational Meeting, you must elect Directors, appoint Officers, adopt a set of Bylaws, adopt a Corporate Seal, and issue Stock Certificates to the business owners (called Shareholders).
- Before operating the business, you will want to apply for a Federal Identification Number (EIN Number) and State Identification Number for banking and tax purposes.
- If you qualify and wish to be treated as an S-Corporation for tax purposes, you must complete and file IRS Form 2553.
- Other Considerations: Should you file an Assumed Name Certificate? Do you need a Privilege License to operate your business? Do the business owners need a Shareholders Agreement? When should you file your first Annual Report with the North Carolina Secretary of State’s office? What Corporate Formalities should I follow to keep my corporation valid as a legal entity?
If you are planning to form a North Carolina Corporation, the foregoing topics are just a few that a business owner must sucessfully navigate through to begin operating a business. If you need help or advice, call an experienced Business Attorney. Call Wesley Scott Jones now at 910-256-5800 for a free telephone consultation.
Wesley Jones is a Business Lawyer serving in Wilmington, North Carolina serving all of Southeastern North Carolina including New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach and the areas of Ogden, Masonboro, Myrtle Grove, Landfall, and Mayfair), all of Pender County (e.g. Burgaw, Surf City, Hampstead and Topsail Beach) and all of Brunswick County (e.g. Bald Head Island, Bolivia, Calabash, Leland, Shallotte, Southport, Saint James, Ocean Isle, and Oak Island).
The following are just a few of the Business Services that Wesley Scott Jones provides to clients: Forming new Corporations and Limited Liability Companies, drafting Articles of Incorporation, Articles of Organization, Shareholders Agreements, Organizational Minutes, Operating Agreements, Annual Meeting Minutes, Bylaws, Annual Reports, Assignments, Board of Director’s Meeting Minutes, Business Entity Startup and Formation, Representing clients who are Buying or Selling a Business, Business Dissolution and Liquidation, Contract Review and Drafting (including Non-Compete or Noncompetition Agreements, Confidentiality Agreements, and Nondisclosure Agreements), Due Diligence Research, Leases, Licensing, Non-Profit Corporations, Non-Solicitation Agreements, Professional Malpractice, Promissory Notes, and Regulatory Compliance.
Forming a Corporation to start or operate a business in North Carolina can be beneficial to the business owners in two important ways: 1) it can help prevent the business owner from paying too much in federal and state income taxes and 2) it can help protect the business owners from incurring Personal Liability for acts carried out by the business.So what are the main steps in forming a North Carolina Corporation?