Top 5 Things to Consider with Certificate of Incorporation
Few steps are more important for an entrepreneur starting a business than getting the legal framework in place2 min read
Few steps are more important for an entrepreneur starting a business than getting the legal framework in place. One of the most crucial components of this process is filing a certificate of incorporation. This document not only establishes a company's existence, but also governs many of its key activities moving forward. Whether you're based in Chicago or elsewhere in the United States, there are a few key things you'll need to consider when filing your certificate of incorporation.
To begin with, you should be aware there is no single, universal formula for filing a certificate of incorporation. The format and content of the document will vary significantly from state to state, and even from organization to organization. That said, in general, a certificate of incorporation will include several core elements: The name of the corporation and its location, the number of shares it can issue, and the names and addresses of its incorporators. In addition, the document will also note the names and addresses of the corporation's board of directors, and the name and address of its registered agent.
When filing a certificate of incorporation, it's essential to ensure all information is accurate and up to date. Everything from the company's name to the contact details for the board of directors should be double-checked. It's also important to avoid disclosing anything that isn't absolutely necessary as part of the document. That includes potential business tactics or sensitive trade secrets. Most states will also have a set filing fee for a certificate of incorporation, so you should factor this into your budget.
At the same time, it's important to be aware of the complexities of local codes and regulations when filing a certificate of incorporation. In Chicago, for example, certain elements of the document will need to reflect the city's specific laws. It's why many entrepreneurs choose to connect with a business lawyer who has experience of the local market. That way, you'll be able to be sure the document meets state and local requirements.
Ultimately, there are many components to filing a successful certificate of incorporation. In addition to the basics, it's worth giving some thought to how you will respond to any additional inquiries should the document be audited. That means ensuring financial statements, credit references and other documents are readily available.
When filing your certificate of incorporation in Chicago, it's important to do your research and be mindful of the details. That way, you can be sure you're filing a document that meets the requirements of local regulations.