A Comparison Chart of Incorporation Service Companies              

Most people incorporate to protect their personal assets from being at risk to satisfy the corporation’s debts and obligations. This limited liability protection is not absolute—there are circumstances where it can be lost. One factor considered by courts in deciding whether to disregard the limited liability protection is whether the corporation was properly formed.

A corporation also provides certain tax advantages to its owners. These tax advantages may be lost if the corporation is audited and its records do not support the proper formation of the corporation or the maintenance of corporate records.

Few people understand the difference between creating a corporation and properly forming a corporation. All that is necessary to legally create a corporation is to file articles of incorporation with the appropriate state agency. This is what all incorporation service companies will do for you. Nationwide Incorporators® offers you this same level of service in our Basic Incorporation Services.

After your articles of incorporation are filed, additional documents need to be prepared, as explained in more detail in the sections that follow. These include bylaws, organizational minutes, a stock ledger and share certificates for your initial stockholders. With our Basic Incorporation level of service as with other incorporation service companies, you can purchase a corporate kit containing a minute book, corporate seal and stock certificates personalized in your corporate name and containing sample bylaws and minutes for you to complete.

If you prefer to have complete, "turnkey" incorporation services, we offer our Premium Incorporation Services. Instead of receiving sample documents, we provide you with fully completed, personalized bylaws, minutes, stock ledger and initial stock certificates. A deluxe corporate kit is also included with your corporate name on the minute book, stock certificates and seal. Additionally, any post-incorporation requirements required by your state to finalize your incorporation within 90 days of incorporating are completed for you.

The proper formation of a corporation involves much more. Bylaws must be tailored to your particular circumstances, such as the number of directors that the corporation will be authorized to have.

Your first set of minutes are your organizational minutes and must address a variety of matters including the opening of bank accounts, a description of the persons authorized to sign checks for the corporation, whether two signatures will be required for checks exceeding a certain amount, whether or not certain tax elections will be made by the corporation, the issuance of stock to the owners and the contribution to be made to the corporation by each owner to receive such stock, and more.

Stock Ledger and Stock Certificates

A stock ledger must be prepared describing the initial stock issued to the owners and their capital contributions.

The actual stock certificates must be completed in the names of the initial shareholders and must indicate the number of shares being issued to each person and the date of issuance.

Immediate Requirements After Incorporation

Typically, each state has requirements that must be met within a short period of time after the articles are filed. This often includes filing a form with the Secretary of State listing the officers and directors of the corporation. It may include publication of the filed articles of incorporation and also filing a stock issuance notice with the governmental agency regulating the issuance of securities in the state. Remember, even though you may have a small corporation, the shares of stock that you issue are still securities and are subject to the requirements of state and federal securities laws.

Failure to comply with any of these post-incorporation requirements generally results in monetary penalties and/or suspension of the corporation’s rights and privileges, and in some states results in the automatic dissolution of the corporation. It will also add support to a claim by the creditors of the corporation that the corporation was not properly formed and the shareholders should be held personally liable for the debts and obligations of the corporation. When you select our Premium Incorporation Services, Nationwide Incorporators® handles these immediate post-incorporation requirements for you.

Only Nationwide Incorporators® Offers a Choice in Levels of Service

As you review the comparison chart and understand what is required to properly complete the incorporation of your business, it becomes apparent that only Nationwide Incorporators® lets you select the level of service that is right for you: Basic Incorporation Services, similar to what is offered by other incorporation service companies, or Premium Incorporation Services that include all of your incorporation documents personalized for you and all incorporation requirements handled for you, an option not available from any of these other incorporation services.