The process of forming a corporation typically involves the following steps:
- Obtaining a corporate charter: A corporation is created by obtaining a corporate charter from the state in which the corporation is to be incorporated.
- Preparation of articles of incorporation: To obtain a corporate charter, the organizers, called incorporators, prepare an application called articles of incorporation. These articles contain information about the purpose of the business, its location, the names of the organizers, the classes and numbers of shares of capital stock authorized, and the consideration to be paid in by the organizers for their shares.
- Approval process for articles of incorporation: The articles of incorporation are then submitted to the state corporation commissioner or other designated officials for approval.
- Issuance of capital stock: Once the articles of incorporation have been approved, the corporation can issue capital stock to its shareholders in exchange for the money, property, or services they provide to the corporation.