Starting a professional corporation could be both daunting and exciting. You need to consider sets of processes before you can fully launch your professional corporation, and it will depend on your state’s policies. West Virginia, for example, has the perfect marketplace to establish a professional corporation. However, you might want to know the basics first before establishing one in this state. Keep reading and save the following steps from jumpstarting the incorporation process.
Set your name.
Before you can launch your business, you need to give it a unique identity first. You can do it by setting up a name you want to share publicly and then adding the phrase “professional service corporation” or even just the “PSC” at the end. You should not include other business types representations on your name because it is not acceptable on the state’s legalities. After you decide on your name, it’s time to register your company URL for a more reputable and solid brand name. It will also notify other business owners that your brand name is already taken.
Choose your registered agent.
A registered agent is an individual who takes responsibility for accepting legal documents on your behalf. You should designate a registered agent for your business upon filing the Articles of Incorporation. Moreover, your registered agent should have a physical address in West Virginia, and you could hire an individual or a company to be your agent as long as they are authorized to do business in the state.
Complete necessary documents.
Some of the documents you need to file are the Articles of Incorporation, corporate records, and business licenses and permits. The Articles of Incorporation has a filing fee, which normally costs $25 for domestic non-profit corporations and $50-$100 for domestic profit corporations. The state won’t also let you operate unless you have obtained necessary legal permits and kept a digital corporate record on your business office.
Craft corporate bylaws.
Corporate bylaws are also an essential part of your business. This is where all the rules and procedures of your business operations are stated. If you have plans of opening a business bank account, you’re also required to present your corporate bylaws. Typically, this covers the following:
- Information about the board of directors and shareholders
- Election of directors
- Office roles types
- Process of resolving disputes
By securing corporate bylaws, your business will surely be on a clear and smooth path. You can either file it as an initial director or incorporator.
Comply with tax obligations.
Your business is subjected to various tax obligations such as federal, state, and local. At the federal level, you’d want to decide whether your business will fall under the S corporation or the C corporation. In terms of the state requirements, it will be based upon your business activities, while your local tax obligations depend on the state where your business is located. Some states have incurred tax obligations. Be sure to file and pay on time to avoid conflicts.
Regardless of whether you are a doctor, lawyer, or an architect who wants to start a professional corporation, the incorporation process is all the same. Just be sure that you comply with all the legal requirements to save yourself from future conflicts that can impact your business. After all, you do not want to waste your investments and witness your business fail.