Like an LLC, discussed in yesterday’s post, an individual must file a document with the Secretary of State to form a corporation. This document is called the Articles of Incorporation (which differs from the Articles of Organization filed by an LLC). The filing of the Articles of Incorporation establishes the corporation.
A corporation can have one or more owners who are called shareholders. The relationship between the shareholders and the corporation is governed by the Bylaws. This document explains the rights and responsibilities of shareholders and how votes are taken.
Like all businesses, a corporation must have the appropriate licenses to do business in its local city and county and the state. This includes filing for sales tax if applicable, unemployment insurance if applicable, and for specialized business licenses (i.e. for construction, professional services, liquor licenses, etc) in addition to other filings.
A corporation may have additional documents depending on the situation. For instance, employment agreements, intellectual property agreements, and investor agreements may be necessary. In addition, shareholder agreements, buy-sell agreements, and founder agreements may be necessary to ensure all owners’ interests are represented and stated correctly.
If you are starting a corporation and need help with the required documents or are unsure what documents you need, please feel free to call me, your Denver small business attorney, at 720-258-6647, email me at firstname.lastname@example.org or contact me through my contact form.