Company Formation

In 2007, Safe Shield completed a comprehensive compliance solution program to keep businesses and nonprofits compliant with corporate requirements. Our mission is to ensure that no business, regardless of size or tenure, slips into bad standing with the government, or its shareholders, simply because the owners are too busy to keep up with the paperwork.

One critical way for businesses to maintain compliance, and avoid prosecution or fees from the government, is to seek legal liability protection through company formation. This type of protection essentially separates the business from the business owner(s), ensuring all liabilities and obligations are the responsibility of the business entity and not the business owner(s).

What is Company Formation?

Company formation is the process by which a business legally becomes a separate legal entity (also known as incorporation). Incorporation has many advantages including:

  • Protection of the business owner’s assets against the business’ liabilities
  • Ownership is easily transferred
  • Achieves a lower tax rate
  • Has lenient tax restrictions on loss carry forwards
  • The ability to raise capital with stock

Many people mistakenly think company formation is the first step in business development, when it actually falls closer to the middle. Before your company is ready to go through formation, owners must first complete:

  • Writing a business plan. This is the essential plan that will prove that your company will succeed. Many investors require to see a business plan before investing.
  • Choose a business location. Location can be an important strategic step. Be sure to consult your state on any restrictions on location for your particular company.
  • Finance the business. Consider how or who will fund your business.
  • Determine the legal structure of your company. This is a critical step and you should consult an expert before picking which type of entity is best for the type of business you have.

Articles of Incorporation

In order to legally become a business outside of a sole proprietorship or general partnership, a corporation or LLC must be created with the state. Although each state has its own specific requirements and regulations, they all will require an Article of Incorporation. This document (also known as the certificate of incorporation) gives the state all of the important information about your new business. It will include the company name, business purpose, registered agent, incorporator, and the number of authorized shares of stock, share per value, preferred shares, and the address.

Business Formation With Safe Shield

We encourage you to learn more about what we provide within our Business Formation System, or schedule a phone call with one of our experts.