What to Know About Creating a Corporation?

What to Know About Creating a Corporation?

It is likely that you have heard the term “corporation,” but many people do not know exactly what a corporation is, or how to create one. A corporation is an organization that has been authorized by the state to act as a single entity with an intended purpose. Read on to learn more about how to create a corporation.

How do I Create a Corporation?

Once you have decided you want to create a corporation, there are a lot of tasks to complete. Some of these tasks include:

  • Creating a business name
  • Appointing the initial directors of your corporation
  • Filing formal paperwork, usually known as “articles of incorporation”
  • Creating corporate bylaws to lay out the operating rules for your corporation
  • Holding the first meeting of the board of directors
  • Issuing stock certificates to the initial owners
  • Obtaining any licenses and permits that are necessary

Choosing a Corporate Name

When it comes to choosing the name of your corporation, there are some specific rules your name must meet:

  • Does not contain any word, phrase, or abbreviation that indicates or implies that it is organized for any purpose other than one or more purposes permitted by its certificate of incorporation
  • Does not have the same or similar name to the corporate name of any domestic corporation
  • Does not contain a word, phrase, or abbreviated that is prohibited or restricted by any other statute in New Jersey
  • Shall contain one of the following: “a New Jersey nonprofit corporation,” “incorporated,” “corporation,” “inc.,” or “corp” unless it is a corporation which could organize pursuant to the provisions of Title 16 of the Revised Statutes

What Does the Process Entail? 

Once the name is chosen and directors are appointed, you must file “articles of incorporation” with the state’s corporate filing office. These documents must specify a few details about the corporation, including its name, principal office address, and sometimes the names of its directors. Next, you will have to obtain the right licenses and permits. When the articles are filed, bylaws are created, the first directors’ meeting has been held, and stock was issued, you must obtain the necessary licenses and permits. This can include a business license. You may also need an employer identification number from the IRS, a seller’s permit from the state, or a zoning permit from your local planning board. It is best to contact an experienced business formation attorney to walk you through the process.

If you are interested in creating a corporation, contact our firm today.

Contact our Firm

The Law Offices of Richard E. Novak, LLC has over 25 years of experience helping clients through tough times when they need it most. If you need assistance with any intellectual property, traffic violations, or business law matters, our firm is here to help. It is critical that you pick the right attorney who can protect your rights. Contact The Law Offices of Richard E. Novak, LLC for a consultation.