Just incorporated your business?
Here's the thing: Filing incorporation papers is just the beginning.
Most new business owners miss critical post-incorporation steps that can come back to bite them later.
In fact, skipping these next steps could put your entire corporation at risk.
Today, I'm going to show you exactly what to do after incorporating your business.
These are the same steps that successful corporations use to protect themselves and operate smoothly from day one.
Let's dive right in.
After forming a corporation, it's time to create two critical documents that will serve as your corporation's operating manual:
While establishing your corporation's foundation, creating detailed bylaws serves as your roadmap for successful governance.
Your bylaws will outline how your company operates, from board meetings to voting procedures, making them essential for smooth decision-making.
You'll want to include specific provisions about how officers are appointed, when meetings should occur, and what voting thresholds are needed for major decisions.
Think of bylaws as your corporation's rulebook - they're there to guide you and your team through important governance matters.
Remember to adopt your bylaws during your first board meeting and keep them safely stored in your minute book.
Don't worry if you need to make changes later - you can amend them following the procedures you've outlined in the document itself.
A strong stockholders' agreement forms the backbone of your corporation's ownership structure. As a fellow business owner, you'll want to create clear legal agreements that protect everyone's interests and keep your company running smoothly.
Your stockholders' agreements should spell out how shares can be bought, sold, or transferred. Think of it as your ownership playbook - it'll help you handle everything from voting procedures to dividend payments.
Don't forget to include buy-sell provisions that kick in if a shareholder leaves or passes away.
Get all stockholders to sign the agreement, making it legally binding. Remember to review and update it regularly as your business grows and changes.
This way, you're building a solid foundation for your company's future while preventing potential disputes down the road.
Let me show you the two must-have documents that make your corporation official and protect your ownership structure.
Without these, you'll hit roadblocks with everything from banking to bringing on investors.
Here's exactly what you need:
The Certificate of Incorporation stands as your company's birth certificate - the official document proving your business exists as a legal entity.
When you receive this vital document, it'll contain key details about your company, including its name, business purpose, and authorized shares.
You'll want to keep it safe and accessible, as it's your ticket to conducting business operations legally.
Here's what you need to do with your Certificate of Incorporation:
Securing stock certificates marks a crucial milestone in your company's journey - it's time to make ownership official. As a newly incorporated business, you'll need to issue these important documents to all your shareholders, following your corporate bylaws carefully.
Don't forget to record each certificate in your securities register - it's like your company's family tree!
Make sure you're storing these precious documents securely, either in a fireproof safe or with your corporate attorney.
Remember, these aren't just pieces of paper; they're the foundation of your company's ownership structure.
Here's the thing: Most new corporations lose their liability protection because they mess up these next two steps.
I'm going to show you exactly how to set up your business's physical and financial foundations the right way.
While setting up your new corporation, establishing an official business address serves as a cornerstone for your company's legitimacy and operations.
You'll need this address for receiving legal documents, registering for licenses, and maintaining compliance with state regulations. Remember, a P.O. Box won't cut it - you need a physical location where your business operates.
Here's what your official business address helps you accomplish:
Keep your address updated with state and federal authorities to avoid penalties.
It's a simple step that makes a big difference in maintaining your corporation's good standing.
Opening a business bank account marks one of the most essential steps in establishing your corporation's financial foundation. You'll need several key documents to get started, including your formation paperwork and Employer Identification Number (EIN).
Remember, keeping your personal and business finances separate is vital for protecting your personal assets. When you visit the bank, bring your identification and any board resolutions authorizing the account opening. Your fellow business owners or authorized signers should do the same.
Think of your business bank account as your company's financial command center. It'll help you track every transaction, simplify your tax reporting, and maintain clear records.
Plus, it shows customers and vendors that you're running a legitimate, professional operation.
Before you can hire employees or even open a bank account, your corporation needs its official government IDs.
Here are the two critical registrations you need to handle right now:
Getting your Employer Identification Number (EIN) marks a crucial milestone in establishing your business's identity. This unique nine-digit number from the IRS is your company's tax ID that you'll need for everything from opening bank accounts to filing tax returns.
You'll want to tackle these essential steps to secure your EIN:
If you’re a non-resident and don’t have an SSN, StartFleet offers a dedicated EIN service to help you apply quickly and correctly — no SSN required.
Once you've secured your EIN, registering for payroll taxes is your next vital step for hiring employees legally. You'll need to register at the federal, state, and local levels to properly withhold and report taxes for your team.
Don't skip this vital step - proper registration keeps you compliant and protects your business from penalties.
Remember, you're responsible for withholding employee taxes and matching certain contributions like Social Security and Medicare.
Your employees are counting on you to handle their tax withholdings correctly, so take the time to set this up right.
Here's a critical insight: A 2023 EPO-EUIPO study found that startups with patents and trademarks are up to 10.2 times more likely to secure funding.
Translation? Without proper brand protection, you're leaving money on the table and risking your company's future.
Filing trademarks early in your business journey safeguards your brand's unique identity and market position. Before submitting your application, you'll want to conduct a thorough trademark search to avoid potential conflicts and guarantee legal protection.
The USPTO review process might take several months, but the long-term benefits are worth the wait.
Here's what you can expect from trademark registration:
After securing your trademark, you'll need robust IP Assignment Agreements to protect your company's intellectual assets.
These legal documents guarantee that all intellectual property created by your founders and team belongs to your corporation.
Let's break down the key elements you'll want to include in your IP assignments:
Building a strong foundation for your corporation requires partnering with qualified financial and legal advisors from the start.
You'll want experts who understand your business goals and can guide you through complex regulatory requirements while protecting your interests.
Successful investor relations management starts with three vital components: clear communication, meticulous record-keeping, and strategic planning.
You'll need to maintain a detailed cap table to track ownership stakes and keep your investors informed of any changes.
Stay connected with your investors through regular updates about your company's performance and financial health.
You'll want to schedule annual meetings to discuss progress and address any concerns they might have.
Don't forget to implement a structured process for future stock offerings - it's essential for maintaining compliance and trust.
Consider conducting 83(b) elections for stock options right away.
This smart move can offer tax advantages for your employees and founders while demonstrating to investors that you're thinking strategically about everyone's financial future.
Beyond managing investor relationships, your corporation needs a strong compliance strategy to stay on solid legal ground.
You'll want to join the ranks of successful businesses that maintain pristine records and meet all regulatory requirements.
Let's keep your company in good standing with these essential practices:
Once you've laid the groundwork for your corporation, it's time to make your daily operations run like clockwork.
Start by establishing a digital minute book to keep your organizational documents at your fingertips. You'll love how easily you can access meeting minutes and resolutions when needed.
To streamline operations, set up cloud-based accounting software that tracks your finances in real time.
Create standard operating procedures that'll help your team work consistently and efficiently. Don't forget to implement a reminder system for important deadlines - you'll thank yourself later when tax season rolls around!
Remember to regularly review and update your corporate documents.
Think of it like giving your business a health check-up. When you stay organized and efficient, you're setting yourself up for sustainable growth and success.
You've taken the vital step of incorporating—now it’s time to set your business up for success.
Studies show that around 35-40% of new corporations fail within the first three years, often due to poor planning and management after incorporation.
Don’t let that be you!
By following these essential steps and staying organized, you’ll create a strong foundation for your company’s growth.
Remember, proper documentation and compliance aren’t just requirements—they’re investments in your business’s future.
StartFleet helps you with your US Company formation. Apart from helping you to register a US company we offer a lot more:
Related Reading: What to Do After Forming an LLC
Kathleen Schweitzer is an international taxation expert, providing strategic counsel to businesses with complex compliance, tax and financial issues in an effort to help them grow their business globally. She often gives lecture on U.S. tax developments, transfer pricing, taxes on the sale of goods and services, U.S. tax policy development, taxation of internet commerce and multi-jurisdictional global tax planning. Kathleen enjoys reading, photography, cooking and spending time with her husband and eleven-year-old daughter.
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