When you are looking at business incorporation, you may be wondering what exactly turns your sole proprietorship into a business incorporation. While there are not a ton of things that are required, but there are a handful. Here are some of those details needed for a business to incorporate.
- Business Name: One of the hardest parts of incorporating is naming the business. You must search within registries to make sure no one in your area already has the name. This has the benefit of you getting to copyright the name so no one else has it, but also you cannot infringe on any existing business names.
- Licenses: While most corporations can simply register and operate, some businesses may require licenses. A restaurant or a construction company will need the proper permits and permissions to operate, so your business will need to comply with the regulations and have proper licenses before you can incorporate.
- Determine Directors: Now that you have a business you will need to decide who is associated with it, for liability reasons. People who are part of the company should be listed as such.
- Registered Agent: A registered agent will also need to be identified. This person will be the one contacted for legal issues or summons that the business is a part of, so that way the business will be held accountable for these things. Simply ignoring summons or lawsuits will not be a good excuse, because your business will have a registered agent who will be processing these things when they are received.
While there are many parts of business incorporation, it is not as difficult as it sounds. Simply assign duties and fill out paperwork and you are on your way from taking your sole proprietorship to the next level.