CREATING YOUR FINANCIAL SAFETY NET - By: Ayxtwo

CREATING YOUR FINANCIAL SAFETY NET

Forming a new business corporate body to get rid of liabilities

6 steps to creating a LLC.

Pick a business name.

This name should be in compliance with your state’s corporation naming rules.
The name can‘t be the same as another corporation on file with the state business formation office.

The name must end with a corporate designator, such as “Incorporated,” or an abbreviation of one of these words (Corp., Inc., or Ltd.)

The business can’t have certain words that suggest an association with the federal government or any other restricted type of business, including: Banking,United States, National. Exercise due diligence to make sure that the name will not violate of another corporate trademark.

Appoint the starting board of your corporation.

Directors will make the important policies, rules and financial decisions for the corporation. When you are an entrepreneur one might be the only director.

Some of the items on the agenda for the directors should be to issue stock, appoint CEO and CFO, and approve loans. Often, the founder simply appoints himself to be the director, even though, directors don’t have to be owner.

Often jurisdictions only allow a corporation to have only one director, despite of the amount of owners. Whereas in many states the amount of directors must correspond to the amount of owners.
3. File formal paperwork, that can be named article’s of formation.

These papers will often be filed with the state. There will be a filing fee between $100 to $600, based on where the jurisdiction where you incorporate. Find a jurisdiction that is best for your business needs.

Prepare and present article’s of formation with your state’s corporate filing office, which is most likely at the business office, located in your state’s main.

No jurisdiction that mandates a corporation to include more than one owner. With a single member company corporations, the only owner would sign the articles of incorporation.

Multiple owner corporations, might include all the owners each sign the formation articles or only authorize a single person to make his signature.

Articles of incorporation are mostly a filing record, they do not have to be long. The imperative thing is the operating agreement. One can even prepare articles of incorporation by filling out a template form provided by the state’s corporate filing office.

They will have details such as the names, office address and names of directors in many instances. Other times this could be kept secret by using a 3rd party and special hybrid entities.

Most likely one of the directors would not want to act as a agent for service of process. There must a person on file for the record, for lawsuits and otherwise. Using a protective layer someone else, and not having your name on it, builds Financial Safety Net ensures
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