Establish a Corporation
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In this exercise: Complete the steps necessary to establish a corporation. Remember, that a corporation does not exist until the corporation documents are both filed and accepted by its home state.
You can complete the assignment by using the Secretary of State's web site in the State of Delaware or the Secretary of State's web site in the state where you live (or appropriate authority, depending on your state).
Allen Smith and Bob Smith ask you to file the necessary corporate documents to form a corporation for the purposes of buying and selling vintage American racing cars within the United States and internationally. This has always been a lifelong dream of theirs, ever since they were children and built model cars as a hobby.
They both have $500,000 as initial investment capital and each one has a son who will be a shareholder in the corporation. The Smith brothers would like to make sure that the corporation can be passed on to their sons in the future. They will operate the business out of their garage located at 123 Memory Lane, Orange Beach, Alabama, 36561. They would like to name the corporation Brother's Automotive, Inc. Allen Smith, Bob Smith and their sons, Chet Smith and Dean Smith, are all residents of Foley, Alabama. The Smiths also request that you research an entity to serve as the Registered Agent for the corporation.
PART 1: Describe the process you will need to complete in order to file the documents and have them accepted by the State. Your answer should include the following:
A. Research the name to see if it is available. If it is not available, then offer the Smiths two alternative names that are available.
B. Identify and describe the documents required to file in the State.
C. Identify the various methods that may be utilized to file with the State.
D. Identify the fees accompanied with the filing.
PART 2: Once you identified the documents necessary to form the corporation in your chosen state, prepare a draft of each document you will file to create the company.
PART 3: Identify and describe the documents the corporation will need to file on an annual basis in the future. You may upload the completed documents combined in one single Word or PDF document. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Any references or citations must be in the APA style.
Cheeseman, H. R. (2013). The legal environment of business and online commerce (7th ed.).
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--PART 1: Describe the process you will need to complete in order to file the documents and have them accepted by the State. Your answer should include the following: A. Research the name to see if it is available. If it is not available, then offer the Smiths two alternative names that are available. B. Identify and describe the documents required to file in the State. C. Identify the various methods that may be utilized to file with the State. D. Identify the fees accompanied with the filing.
In starting a business corporation the Secretary of State manages the required documentation filing and continuing administration of identifying an entity as a business. By using a case study example, the state of Alabama is utilized to review the process in completing required documents for official filing of the name, designated officers, board of directors (if warranted) and paying fees accordingly. Depending on the state, please note, the process can reveal slight differences in the overall documentation and timely of fillings required for completion. Therefore, in the case study example using the Secretary of State of Alabama, the following main procedural steps are required for completion to filing a business entity as a corporation in the state (Alabama.gov 2013):
a. The corporation name - (The objective is to select a business not already in use, thereby; the initial verification of the corporation name should be all clear preferably contain the word corporation in the title. The example of Brother's Automotive Inc., most likely will suffice for the Secretary of State to approve if not already in use already on record, therefore, the reserving of the owners must ...
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