As your business grows, keeping yourself safe, providing security within your company, and presenting yourself professionally to the industry around you become higher on your list of priorities. It is time to choose a business entity that suits your organization best to ensure all these things are in place. 

Whether you choose to be an LLC, C-Corp, or S-Corp, you will have to go through the process of forming that entity around your business, and that means filling out and providing the right documentation. Formation documents outline information regarding your business, rules that must be followed, and how it’s formed. These documents act as a contract to protect and regulate your company. 

Documents to Form an LLC

Forming an LLC can help protect your personal income and assets. It can provide your company with limited liability, pass-through income, and active ownership by its involved members. In order to form an LLC, these are some of the necessary documents. 

You will need an IRS Form SS-4. This form will provide you with your Employer Identification Number, which is necessary for all further documentation and liabilities regarding your company. 

After choosing a name for your business, you must obtain your Articles of Organization. Generally, you will have to submit this to the state in the desired number of copies they ask for. In this document, you will state information such as your business name, purpose, primary address, ownership, registered agent, and management. 

Then, you will need an Operating Agreement. These are essential to establishing how your LLC will be governed. An Operating Agreement will cover the ground rules of running the LLC and the responsibilities of its listed members. 

Documents to Form a C-Corp

Forming a C-Corp can provide limited liability to owners while also making the business more appealing to investors later on. Venture capitalists will seek out C-Corps more often than LLCs. To form one, you need a few of the following documents. 

To start, you must submit your Articles of Incorporation to the state that your business resigns. Different states might be more profitable depending on their tax laws. You will need to provide information such as your business address, authorized shares, and director’s names. 

Next, you will need to establish your corporate bylaws. These outline the processes and procedures your leadership and shareholders must follow. 

Then, no matter the business, you will need to obtain your licenses and permits. This can vary from state to state and business to business, but it will cover subjects such as general business licenses, health permits, and zoning permits. 

Documents to Form an S-Corp

Some may file under an S-Corp to get great protection and lower taxes. No matter the reasoning, there are certain steps and documents that you need to set up your S-Corp.

As always, you will need to submit your Articles of Incorporation to the state you wish to run your business in. This will cover information such as the company’s initial stocks and directors. 

You will also need to file an IRS S-Corp Election Form (2553) no later than two months and 15 days into the beginning of the organization’s first year. This will ensure that any actions such as obtaining shareholders, acquiring assets, and general business operations are outlined in your taxes. 

Lastly, you will need to have your organization’s bylaws. This will detail the rights, duties, relationships, and responsibilities of those incorporated with your business. This will ensure you are protected if something were to happen in the life of your organization. 
There are a lot of details that go into forming an entity. Whether you choose an LLC, C-Corp, or S-Corp, go into the process with guidance from our team at Hartmann Law.