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How to Start a Corporation

Starting a corporation involves several steps, from choosing a company name and preparing formation documents to setting up your corporate structure and handling tax requirements.
The process varies by state, so it is important to understand the requirements that apply to your business before filing. This guide explains the main stages, common costs, and important tasks to handle after formation.
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1. Choose Your Corporation Name

Your corporation needs a name that meets the requirements of the state where you plan to form the company. The name generally needs to be distinguishable from other registered businesses.
Before filing, search your state's business records to check whether your preferred name is available. You may also want to search federal trademark records to identify possible conflicts.
  • Check Name Availability
  • Review State Naming Rules
  • Search Existing Companies
  • Check Trademark Records
  • Reserve a Business Name
  • Choose a DBA Name

2. Decide Who Will Own the Corporation

Corporations are owned by shareholders. Shareholders hold ownership through shares of stock and can have voting rights based on the company's structure and applicable rules.
Before formation, think about who will own the company, how many shares will be authorized, and how ownership will be divided.
  • Choose Your Shareholders
  • Determine Authorized Shares
  • Plan Ownership Percentages
  • Understand Stock Classes
  • Set Shareholder Rights
  • Plan Future Ownership

3. Select a Registered Agent

Corporations generally need a registered agent in the state where they are formed.
The registered agent receives certain legal and official documents for the company. State requirements vary, but the agent generally needs to meet the state's availability and address requirements.
You may be able to act as your own registered agent or hire a professional service.
  • Choose a Registered Agent
  • Registered Agent Requirements
  • Professional Registered Agent
  • Registered Office
  • State Compliance
  • Corporate Mail

4. File Your Articles of Incorporation

The formation document is commonly called Articles of Incorporation, although some states use a different name.
The document may require information such as the corporation's name, registered agent, business address, authorized shares, incorporator, and corporate purpose. Requirements vary by state.
Once the state approves the filing, your corporation becomes an established legal entity under the applicable state law.
  • Articles of Incorporation
  • State Corporation Filing
  • Formation Documents
  • Corporate Purpose
  • Authorized Shares
  • Incorporator Information

5. Establish Your Corporate Structure

Corporations generally have a formal management structure involving shareholders, directors, and officers.
Shareholders own the company. The board of directors oversees major business decisions and corporate strategy. Officers handle the company's daily operations.
A small corporation may have fewer people handling these roles, but the responsibilities still need to be clearly established.
  • Shareholders
  • Board of Directors
  • Corporate Officers
  • CEO or President
  • Secretary
  • Treasurer or CFO

6. Create Your Corporate Documents

Corporate documents help establish how the company operates and how important decisions are handled.
Depending on your corporation and state, you may need corporate bylaws, organizational resolutions, meeting records, stock records, and other internal documents.
  • Corporate Bylaws
  • Organizational Resolutions
  • Meeting Minutes
  • Stock Records
  • Corporate Record Book
  • Shareholder Documents

7. Get an EIN

A corporation generally needs an Employer Identification Number from the IRS.
An EIN is used for federal tax purposes and may also be needed when opening a business bank account, hiring employees, and completing certain business applications.
Apply for the EIN after your corporation has been properly formed and follow the IRS requirements that apply to your company.
  • Apply for an EIN
  • Federal Tax ID
  • EIN for Corporation
  • Business Bank Account
  • Federal Tax Requirements
  • IRS Business Setup

8. Choose Your Tax Treatment

Corporations have federal tax considerations that need to be understood before you begin operating.
A corporation may be treated as a C corporation by default for federal tax purposes. Certain eligible corporations can elect S corporation treatment if they meet the applicable IRS requirements.
The two structures have different tax rules, ownership requirements, and filing considerations. Discuss your circumstances with a qualified tax professional before choosing a tax election.
  • C Corporation
  • S Corporation
  • Corporate Tax Requirements
  • Federal Tax Election
  • State Corporate Taxes
  • Tax Planning

How Much Does It Cost to Incorporate a Business?

The cost to incorporate a business depends on the state and the requirements that apply to your company.
State filing fees vary. Some states also have additional costs for initial reports, business licenses, registered agent services, franchise taxes, or other requirements.
Your total startup cost may therefore include more than the basic incorporation filing.
Before filing, check the current fees and recurring obligations in your chosen state.
  • State Filing Fees
  • Registered Agent Costs
  • Business License Fees
  • Initial Report Fees
  • Annual Filing Costs
  • State Taxes

9. Handle Business Licenses & Permits

Incorporating your company does not automatically provide every license or permit needed to operate.
Depending on your location and industry, you may need federal, state, county, or city approvals.
Check requirements for your specific business before selling products, providing services, hiring employees, or opening a physical location.
  • Business Licenses
  • Local Permits
  • Industry Licenses
  • Sales Tax Registration
  • Professional Licenses
  • Zoning Requirements

10. Open a Corporate Bank Account

Once your corporation is established, consider opening a separate business bank account.
A financial institution may request your formation documents, EIN, identification, ownership information, and other company records.
Keeping company finances separate can make it easier to manage expenses, revenue, payroll, and financial records.
  • Corporate Bank Account
  • Business Banking
  • Company Finances
  • Business Accounting
  • Financial Records
  • Payment Processing

11. Maintain Your Corporation

Your responsibilities continue after incorporation.
Many states require corporations to file periodic reports. Depending on the state, this may be an annual report, biennial report, statement of information, annual list, or another type of filing.
You may also need to maintain licenses, pay applicable taxes, keep corporate records, and update company information.
Missing required filings can result in fees or other consequences, so keep a calendar of important deadlines.
  • Annual Reports
  • Corporate Compliance
  • State Filings
  • License Renewals
  • Corporate Records
  • Tax Deadlines

What Happens After Incorporation?

Once your corporation has been approved, focus on getting it ready to operate.

Organize Your Company

Set up your corporate records, bylaws, ownership information, and other internal documents.

Set Up Banking

Open a dedicated business bank account and establish a system for managing company finances.

Handle Tax Requirements

Understand your federal, state, and local tax obligations.

Obtain Licenses

Check which licenses and permits apply to your industry and location.

Build Your Business Presence

Set up your website, business email, business address, phone number, and other customer-facing details.

Track Compliance

Monitor annual reports, tax deadlines, licenses, and other recurring requirements.

Ready to Incorporate Your Business?

Creating a corporation involves several administrative steps. RegisterMyBizNow can help you manage important business services, from incorporation and EIN applications to registered agent and compliance services.
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Why We Use Email & Text

We are very busy helping clients register their businesses. To give your files our full attention and complete your work fast, we do not take phone calls. Operating entirely by email or text allows us to focus on your needs without interruptions.
We review all messages quickly and will reply within 48 hours or less.

Frequently Asked Questions

Everything you need to know about setting up your limited liability company.

To start a corporation, choose a business name, determine ownership, select a registered agent, prepare and file the required formation documents, establish your corporate structure, obtain an EIN, and handle applicable licenses and tax requirements.

The general process involves selecting a name, preparing Articles of Incorporation or the applicable state document, filing with the state, creating corporate bylaws and records, appointing directors and officers, and completing federal and local requirements.

To incorporate a business, choose the state where you want to form the company, check name availability, appoint a registered agent, prepare the incorporation documents, file them with the appropriate state agency, and complete the required post-formation steps.

There is no single nationwide cost. State filing fees vary, and you may also have expenses for registered agent services, licenses, initial reports, annual filings, and state taxes.

Articles of Incorporation are the formation documents used to establish a corporation with the state. The information required varies by state.

Corporations generally need a registered agent in the state where they are registered. The specific requirements depend on state law.

An incorporator is the person who signs and submits the formation documents that create the corporation. The incorporator may be an owner, professional service provider, or another authorized person.

Corporations are owned by shareholders. The shareholders own shares of stock and have rights established by the company’s governing documents and applicable law.

The board of directors oversees major corporate decisions and company strategy. Directors are generally elected by shareholders.

Corporate officers handle the company’s daily operations and carry out decisions established by the board. Common positions include president, CEO, secretary, treasurer, and CFO.

Corporations generally need an EIN for federal tax purposes and other business activities.

Many states require corporations to file periodic reports. The filing name and frequency depend on the state.

Many states require LLCs to file annual or biennial reports. Requirements and deadlines vary by state.

Possibly. Incorporation and licensing are separate requirements. Your industry, location, and business activities determine which licenses and permits you may need.

After incorporation, organize your corporate records, obtain an EIN, establish banking, handle licenses and permits, set up accounting, and track ongoing compliance requirements.

Many states provide online filing options for corporations. The available filing methods depend on the state.

RegisterMyBizNow provides incorporation and related business services, including EIN, registered agent, business address, annual report, and other administrative services.