Incorporating a business is a pivotal step on the path to establishing a legal entity with the state, separate and distinct from its owners (called shareholders). You’ll start with a unique business name, reliable registered agent, and several corporate organizational documents to begin navigating through the incorporation process.
Epik Incorporation Service
Forming a corporation takes prudent planning and a sharp eye for detail. When you form a corporation with Epik, we’ll take care of everything all at once: registered agent service, an accurate and speedy formation filing, plus compliance monitoring for the life of your business—all for $225 plus state fees (registered agent service renews at $125 per year). We’ll file additional paperwork on your behalf, such as the Beneficial Ownership Report (BOI), and remind you of local and federal requirements. Our lifetime customer support will answer any business questions and guide you through every stage of your business.
Creating your own corporation can feel laborious and overwhelming, especially if you’re just starting out. The time and energy you spend will be worth your while—you’ll gain credibility, personal asset protection, and financial benefits, among several other benefits.
How do you form a corporation?
Our guide unravels each complex step of starting a corporation, spelling out the best strategies along the way.
-
Appoint a Registered Agent
By designating a registered agent on your incorporation paperwork, you’re letting the state know who your point of contact is for receiving important state and legal documents. Choose a reliable individual or professional service with a physical address in the state where your corporation is registered. A registered agent provides a significant level of privacy by keeping your personal address off public records and away from marketers, scammers, and unhappy customers.
-
Choose Your Business Name
State laws govern the business name selection process—meaning that once you’ve chosen a name that accurately reflects the nature of your business, you’ll need to ensure it’s unique and compliant. Head over to your state website’s business name search to check your name’s availability and compliance with all the other state laws surrounding business names.
While registering your business name means that no other businesses get to register that name as their own, that doesn’t guarantee legal protection if others still use your name for their own business. Registering a trademark on your business name helps protect it as intellectual property, giving you exclusive rights.
-
File Articles of Incorporation
To officially form your corporation in the eyes of the state, you must fill out and file Articles of Incorporation (or equivalent document). Each state has specific criteria for these articles, but generally, they should contain details such as your registered agent’s information, the corporation’s name, share details, and signatures.
-
Obtain an EIN
Most states provide online portals or forms for swift EIN application submission. Prepare to list your essential business details, including ownership structure and primary activities. Remember, an EIN is more than just a required number—it’s your business’s identity in the eyes of the state and federal authorities.
-
Submit a Beneficial Ownership Information (BOI) Report
A beneficial ownership report shows who actually owns or controls a company, especially if it’s not obvious from the official records. You’ll provide names, birth dates, addresses, and personal ID for all the owners with at least 25% ownership stake, as well as some information about the company itself. Most corporations need to file this report to the Federal Crimes Enforcement Network (FinCEN) within a specific window of time after incorporation.
-
Write Your Bylaws
Corporate bylaws are internal policies written to lay out operations and management. This legally-binding agreement includes policies for voting, distributing stock, appointing officers, holding board and shareholder meetings, resolving conflicts, and dissolution. Most states won’t require you to file your bylaws—only to have them in place, acting as one your corporation’s most important internal documents.
-
Schedule an Organizational Meeting
Your first official corporate meeting, commonly called the “organizational meeting,” is a state-mandated meeting where you’ll make the big decisions: stock distribution, appointment of officers, insurance and loans, and the like. These key discussions and actions make up the meeting minutes, which are recorded and kept with your other corporate records.
-
Open a Bank Account
As a distinct legal entity, your corporation needs its own business bank account for income and assets—and this separation from shareholders keeps your corporate veil in tact. Once you’ve approved the finer details, opening a business bank account usually requires your incorporation paperwork, EIN, and bylaws. Depending on the bank, you might need a resolution with an authorized person named to open a bank account for your corporation.
-
File Initial & Renewal Reports
Depending on state laws, you might need to file an initial report shortly after you incorporate or business renewal reports—annual, biennial, or decennial reports—periodically. These types of reports are fairly simple to complete, and keep your corporation’s information updated on the state records. Neglecting to file, however, results in fines, penalties, or administrative dissolution of your company.
-
Be Ready to Expand
Whenever you’re ready to take your company across state lines, you’ll start by registering your business as a foreign corporation in each state you plan to do business. This process is called “foreign qualification”—and it’s legally required to transact business outside of the state where you formed your company. Check out our detailed guide on foreign qualification for more information.
Why have Epik form your corporation?
With a top-tier reputation focused on protecting customer privacy and comprehensive business knowledge, we’ve expanded our services and solutions to match. Our customers who are serious about reaching clients and creating a formal business structure can trust us for accurate and speedy formation filings, reliable registered agent service, and access to our business address on all filings to protect their privacy—all under one roof.
How Our Service Works
Choose Epik to form your corporation, and we’ll streamline the process for you. Simply answer a few questions about your business, and we’ll prepare and file your Articles of Incorporation and submit them to your state agency. Our service is $225 plus state fees, and that includes incorporation service and one year of registered agent service. After one year, registered agent service renews at $125 per year. While your incorporation is in progress, we’ll assist you in establishing your online presence with hosting and domain services tailored to your needs.
Once your incorporation is approved, we’ll guide you through the next steps, like obtaining an EIN and setting up a business bank account. We’ll handle ongoing compliance tasks, assist with tax filings, and keep you informed of any new business or state requirements. With Epik, you can focus on running your business while we handle the paperwork and filings. Entering the unfamiliar territory of corporate life is easier with our professional services to help your business take shape and keep you on course.
FAQ
A corporation is a legal entity that is separate from its owners, known as shareholders. It is formed under specific laws and regulations, allowing it to conduct business, own assets, and incur liabilities in its own name.
An LLC (limited liability company) and a corporation are both legal business structures offering limited liability protection. However, they differ in terms of management, taxation, and ownership. LLCs offer more flexibility in management and taxation, allowing for pass-through taxation, while corporations have a more rigid structure with shareholders, a board of directors, and double taxation.
The primary purpose of incorporation is to provide limited liability protection to its owners, shielding them from personal liability for the corporation’s debts and obligations. Additionally, incorporation offers advantages such as perpetual existence, ease of raising capital, and potential tax benefits.
There are several types of corporations, including:
- C Corporation: The most common type, with shareholders, directors, and officers, offering limited liability to its owners.
- S Corporation (S Corp): A tax election (not a type of corporation) that passes corporate income, losses, deductions, and credits through to its shareholders for federal tax purposes. Other business entities can choose to be an S corp, including LLCs.
- Nonprofit Corporation: Formed for charitable, educational, religious, or scientific purposes, typically exempt from certain taxes.
- Professional Corporation (PC): Formed by licensed professionals (e.g., doctors, lawyers) to provide services within their licensed profession.
The cost of incorporating varies depending on factors such as the state of incorporation, legal fees, and any additional services required. Generally, state filing fees range from $50 to $800. At Epik, our incorporation service is $225 plus state fees—and that includes formation service and one year of registered agent service. After one year, registered agent service renews at $125 per year.
Corporations are subject to corporate income tax on their profits at the federal, state, and sometimes local levels. They file their taxes using Form 1120 with the IRS. Additionally, shareholders pay taxes on dividends received from the corporation, resulting in double taxation. However, corporations that have elected S corp tax status benefit from pass-through taxation, where profits are taxed only at the shareholder level.
Before incorporating, it’s crucial to consider factors such as the nature of your business, anticipated growth, taxation implications, legal requirements, and ongoing compliance obligations. Consulting with legal and financial professionals can help ensure that incorporation aligns with your business goals.
Pros:
- Limited liability protection for shareholders.
- Perpetual existence independent of its owners.
- Ability to raise capital through the sale of stock.
- Potential tax advantages and flexibility in structuring ownership.
Cons:
- Complex legal and regulatory requirements.
- Double taxation of corporate profits (C corporations).
- Costs associated with formation and ongoing compliance.
- Potential for conflicts between shareholders, directors, and officers.
To conduct business in multiple states, your corporation needs to register as a foreign corporation in each additional state where it operates. This involves filing paperwork and paying fees to each state’s Secretary of State or similar authority.