Many individuals have the knowledge, experience and/or plan to operate a successful business. However, a question commonly asked of a business attorney at The McGuire Law Firm is, “how do I start a corporation?” Many business owners know how to run and operate their business but they are unaware of how to legally start their business. The article below has been drafted by a Denver business attorney at The McGuire Law Firm to discuss the first steps in starting a corporation.
To start a corporation, one of the first steps you will need to complete is filing your articles of incorporation. You will file your articles of incorporation with the Colorado Secretary of State. Although, additional provisions can be added to the articles of incorporation, the articles can be fairly straight forward. If you have questions regarding the filing of your articles of incorporation, you can always contact a business attorney for help.
After filing your articles, you will want to obtain an Employer Identification Number (EIN) with the Internal Revenue Service. Your EIN will act as your taxpayer ID, and you will state this number on many tax returns and other documents. Further, your bank will likely require an EIN for you to open a business checking and/or savings account. You can file for an EIN on the IRS website by completing an SS-4. If you are on the IRS website, generally there is a link to click to apply for an EIN online. You can obtain your EIN letter directly on the website once you have completed the application and should save this letter for your record.
Now that you an EIN and have filed the Articles of Incorporation you can go to a bank and open your business bank account. For tax and accounting purposes it will be very important to have a separate business bank account and make sure that all deposits and withdrawals are business related.
A corporation should have corporate bylaws that outline how the corporation will operate, but the bylaws do not need to be filed with the secretary of state. Further, a board of directors and corporate officers needs to be determined. The corporation may wish to make certain tax elections. For example, your corporation may be taxed as a C corporation or an S corporation. You must make an election to be taxed as an S corporation and this election should be discussed with a tax attorney, business attorney and/or another tax professional. Additionally, the corporation may wish to have other documents and agreements drafted, which should be discussed with your attorneys.
If you have questions regarding the formation of a business please feel free to contact a Denver business attorney at The McGuire Law Firm. We can assist you with the formation of your business, issues as the business operates such as the drafting of necessary documents & contracts and the sale or transfer of business assets & interests.
Contact The McGuire Law Firm to speak with a Denver business attorney and schedule your free consultation today!