| Nearly all small businesses should form | | | | |
| entities to limit their exposure to civil | | | | Limited liability companies are simple |
| liability in the form of lawsuits. In forming | | | | structures and are the creation of creative |
| an entity, certain documents have to be filed | | | | politicians in Wyoming. In 1977, Wyoming |
| with the state in question. | | | | passed the first state laws authorizing the |
| | | | creation of these business entities. Mirrored |
| States | | | | after corporations, the filing process is |
| | | | similar to corporations, but with little |
| To the surprise of some, state law instead of | | | | tweaks here and there. |
| federal law governs business entities. When | | | | |
| form an entity, you should look to the | | | | Whereas corporations have articles of |
| Secretary of State for your jurisdiction to | | | | incorporation, limited liability companies |
| find out the filing requirements. Some states | | | | have Articles of Organization. These Articles |
| provide clear and concise information. Other | | | | of Organization require pretty much the same |
| states seem to enjoy making the process | | | | information as articles of incorporation. The |
| difficult and complex. Regardless, all of | | | | primary difference, however, is most states |
| them have a web site for the Secretary of | | | | require you to use a pre-printed form for the |
| State. | | | | articles. Make sure you check with your state |
| | | | to determine if this is a requirement. |
| Corporations | | | | |
| | | | Do It Yourself? |
| In most states, forming a corporation | | | | |
| requires the filing of articles of | | | | If you are a sole proprietor seeking a |
| incorporation. Articles of incorporation | | | | business entity, you can handle it if you |
| requirements differ by state, but typically | | | | understand the concepts. If you don't |
| require a statement of the name of the | | | | understand the process, get a professional |
| corporation, the number of authorized shares, | | | | involved. |
| the name and address of a registered agent | | | | |
| and the name of the incorporator. The | | | | If there are two or more people in the |
| incorporator is typically the person signing | | | | business, an attorney should be used for |
| the articles of incorporation. Once created, | | | | liability purposes. These liability purposes |
| the articles are filed with the Secretary of | | | | arise when one "owner" takes charge of the |
| State, which eventually will approve and | | | | filing. When disputes later arise, the take |
| return them to you. In most states, there is | | | | charge owner is inevitably accused of |
| no need to file bylaws, organization minutes | | | | organizing the filing in such a way at to |
| or shareholder information. | | | | create an advantage. |
| | | | |
| Limited Liability Companies | | | | Yes, it happens all the time. |