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| Learn how to incorporate. An incorporating handbook online with step-by-step instructions and forms for every state. | ||
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• Incorporating Forms
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Most people think incorporating a business is a difficult and complex thing to do. Actually it's very simple. Basically all you need to do is file "articles of incorporation" with a state agency and pay a fee. The articles of incoporation is a simple document that provides information about the corporation you want to form, and not much more than your name and address. Until the early 1900's, incorporating wasn't so easy. When the first coporations were formed, a business owner had to petition the state legislature to pass a special law allowing the business to operate as a corporation. Of course, having your own law passed is a complicated and expensive process - an option only available to those with enough money, influence, and legal experts to get the job done.
With the industrial boom of the early 1800's, the corporation became the preferred type of business organization. Operating as a corporation made it easier to obtain enormous funds needed to build factories and railroads. Instead of going to the bank for a loan, entrepreneurs simply sold shares, or small pieces of their business, to anyone wanting to "share" in the huge potential profits of venture. Legislatures soon found they were spending too much time granting special corporate charters, and began to pass general corporation laws that made it much easier to incorporate a business.
In 1811, New York passed the first general corporation statute and began to enjoy tremendous revenues from businesses incorporating there. Hungry for a piece of the revenue pie, the neighboring states of New Jersey and Delaware passed more liberal (easier to satisfy) corporate statutes by 1899. The Delaware law basically made incorporating a matter of filing a form with the secretary of state. Of course this lured many corporations away from New York and began the interstate competition for corporations that continues today.
Delaware remainded the epicenter for corporations until 1969 when the American Bar Association developed a uniform set of corporation law based on the popular Delaware corporation statute. By simply adopting this '"turnkey" set of laws called "The Model Business Corporation Act" any state could have its own set of modern corporation law by simply making the model act a part of its own law. Most states did just this. Today the model act is the basis for corporate law in most states and single-handedly destroyed the primary advantage of incorporating in Delaware, which brings up an important question...
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