Small Business Incorporating



1. You must hire an attorney when incorporating a small business.

False
An attorney is not a legal requirement for small business incorporating. You can prepare and file the articles of incorporation yourself; however, you must understand the requirements for incorporating a small company as well as your intended state of formation. If you are unsure if becoming a corporation will benefit your business, consult an accountant or attorney. These professionals are familiar with all the required forms and documents that must be presented and approved for a business to become a corporation.


2. A registered agent is required when incorporating a small business.

True
The registered agent is the person designated to receive services of process, legal notices and other official documents delivered to the corporation. All corporations must have a registered agent on file with the Secretary of State. The address of the agent must be a physical address, not a post office box. the person designated to be the agent must be an employee, officer, shareholder of the company, director or he or she may not be affiliated with the company at all.


3. There are specific documents you must have in order to achieve incorporating a small business.

True
In addition to the address and name of the company, you need to provide the director's names, the address where the corporation will be located and the number of stock shares you wish to have authorized when incorporating a small business.


4. When small business incorporating, officers, directors and shareholders all play the same role.

False
Officers, directors and shareholders each have a different role in the corporation. Shareholders are the owners of the corporation and elect the directors. Directors guide and are involved in strategic decisions of the company on behalf of the shareholders. Officers are selected by the directors and run the daily operations of the company. It is not necessary to have separate people to run all three positions when small business incorporating, as one person can perform all positions.


5. Small business incorporating can demonstrate wise financial management.

True
Proverbs 27:23-24 - Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation?


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