Forming a Corporation in 11 Simple Steps

Creating a corporation provides entrepreneurs and business owners with numerous advantages and protections. While the process may involve navigating various legal and administrative steps, the benefits gained from establishing a corporation far outweigh the effort. Here are key reasons why forming a corporation properly is crucial.

• A corporation provides limited liability protection, separating personal assets from corporate debts and obligations. This safeguards shareholders’ personal wealth, even during financial difficulties or legal disputes.
• A corporation is recognized as a separate legal entity, capable of owning property and conducting business independently. This distinction ensures stability and continuity, regardless of changes in ownership or management.
• Forming a corporation enhances credibility and professionalism, instilling trust among customers, clients, investors, and business partners. Its corporate structure signals long-term commitment, attracting opportunities that may not be available to unincorporated businesses.
• A properly formed corporation is also advantageous for capital generation and investor appeal. Through the issuance of shares of stock, it becomes easier to raise funds and secure financing.
• Corporations may enjoy potential tax benefits, such as deductions, tax credits, and lower tax rates on retained earnings, depending on the jurisdiction and corporation type.
• Forming a corporation allows for effective succession planning and easier transfer of ownership, providing flexibility in merging with other entities or passing on the business to future generations.

While setting up a corporation might seem to be a complicated endeavor, it’s really not that difficult to manage the process if you are adequately educated on what is expected of you. With that in mind, FastFilings has put together a brief infographic that outlines the major steps involved in creating a corporation. 

And remember, FastFilings can help you with the business filings necessary to start your own corporation. As a private business-to-business (B2B) filing service, we’ve helped many entrepreneurs around the U.S. establish a corporation the right way.