Steps in Forming a Corporation

1. An application called articles of incorporation is submitted to the appropriate official of the state in which the company is to be incorporated. 2. The articles of incorporation are signed by the promoters and are submitted with a charter fee.

3. When approved, the articles of incorporation become the charter of the corporation. 4. After receiving the charter, the stock subscribers elect an acting board of directors and develop by-laws. The charter and by-laws are the basic rules for operating the corporation.

5. The Board of Directors appoints the officers who serve as the managers of the business. 6.The corporation then issues stock certificates to the subscribers who have paid in full.

7.At this point, the stockholders now exist and they can elect a permanent Board of Directors.