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Business formation issues: Starting a corporation

With all of the entity choices that Illinois entrepreneurs can choose from, you may have settled on starting a corporation. This is just one of the decisions you make during business formation that helps to guide the course of your business. Now that you have made your decision, setting up this type of entity needs to be done correctly in order to spare you from future problems.

Every business type requires you to choose a name, and a corporation is not different. This is often the first step to creating your new business. Not only could your choice of name be a powerful marketing tool, but it can also cause you trouble if it comes to close to the name of another company or is already used. Running a search of businesses here in Illinois, and elsewhere if necessary, needs to be done in order to avoid this issue becoming a problem for you.

You may then choose the state in which you want to incorporate and your directors. Once these types of preliminary decisions are made, you can then create and file your Articles of Incorporation. You will also need to create a set of bylaws for the company, along with a shareholders agreement if you need one in order to outline the rights and responsibilities of any shareholders and the company.

The above only includes the documentation necessary to create your company on paper. More tasks require completing before you can consider your company to be open for business. The legal requirements of each of these documents can be complex, so it may be to your advantage to consult with a business formation attorney in order to make sure that your corporation complies with all applicable laws and provides the appropriate protections for your business and you.

Source: FindLaw, "Checklist: Starting a Corporation", Accessed on Dec. 17, 2017

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