Steps in Forming A Corporation

A corporation is formed under the laws of the state in which it is registered. To form a corporation youíll need to establish your business name. For corporations, your legal name is the one you register with your state government. If you chose to operate under a name different than the officially registered name, youíll most likely have to file a fictitious name (also known as an assumed name, trade name, or DBA name, short for "doing business as"). State laws vary, but generally corporations must include a corporate designation (Corporation, Incorporated, Limited) at the end of the business name.

To register your business as a corporation, you will need to file certain documents, typically articles of incorporation, with your stateís Secretary of State office. Some states require corporations to establish directors and issue stock certificates to initial shareholders in the registration process. Contact your state business entity registration office to find out about specific filing requirements in the state where your business will be formed.

Once your business is registered, you must obtain business licenses and permits. Regulations vary by industry, state and locality. Use the Licensing & Permits tool on Business.gov to find a listing of federal, state and local permits, licenses, and registrations you'll need to run a business.

If you are hiring employees, read more about federal and state regulations for employers.