1. Determine short-term and long-term needs of the business being formed.
Determine what, if any, licensing requirements will be needed to operate in the locations selected.
3. Reserve a name for your company.
- A database search will be conducted to see if the name
you would like to use is available. Determine a few names that you would like to use so that if one is unavailable you have
- A filing to reserve the name of the corporation would then be filed. The fee for Name Reservations is typically $30
(it various by state) and is good for up to 60 days.
4. Determine structure of company & file.
5. Apply for a tax identification number with the IRS.
The structure will
be determined by the type of tax treatment needed as well as the type of protections desired by the officers/members of the
organization. A local Certified Public Accountant may be needed to assist with this determination. One such CPA is Aidan
Burke of Aidan Burke, Inc. (www.aburkeinc.com).
The types of entities are as follows: S Corporation, C Corporation, Limited Liability Corporation,
Foreign Limited Liability Corporation, Limited Liability Partnership, Foreign Limited Liability Partnership, and Professional
Determine who will be listed as the officers of the
Once determined, the filings would be completed and a corporate kit with by-laws, stock certificates,
corporate seals, annual meeting minute sheets, etc. would be ordered. Filing fees are determined by the type of entity being
formed. The cost is typically under $100 for a corporate kit.
An annual report will need to be filed
with the Commonwealth of MA. Again, the filing fees for annual reports are determined by the type of entity being formed.
If the annual report is not filed, the Commonwealth may dissolve the entity.
such time as the corporate entity is no longer needed or is to be terminated, a withdrawal or Articles of Dissolution will
need to be filed with the Commonwealth with the appropriate fees.
A corporation may also want to obtain
the certificate of good standing with the officer listing (aka a long form certificate) for purposes of establishing local
bank accounts, etc. The fees for certificates are tyically $12 to $25.
6. Obtain appropriate insurance coverage.
- An SS-4 form would need to be filed
with the IRS in order to obtain a tax identification number for the newly formed corporation.
- A regional provider that may assist with providing information in connection
with this task is Christopher Hawthorne of Thomas Gregory Associates Insurance Agency, Inc. (www.thomasgregory.com).