The Formation Process

With the support of ALTON, the formation of a corporation is generally possible within seven days. An initial step in the founding procedure is deciding on a name. Nearly all names are possible for your new corporation if they have not already been assigned within the respective state in which the corporation is going to be founded. In most states, though, name components such as “bank” or “insurance” are not possible. The chosen name must also contain an addition such as “Inc,” “Corporation,” or “Corp”. The name will therefore clearly indicate what type of company it is.

After the choice of name, the founder will complete the Articles of Incorporation. These “Articles” contain important information on the company that is to be founded. This information includes the location and purpose of the company, its name and the number of “authorized shares,” or in other words, the shares which the company can (but does not have to!) issue. The Articles of Incorporation are then processed in most states in the U.S. by the Secretary of State. This body of the state administration occupies third position behind the Governor and the Vice-Governor in the administrative structure of the state.

The founder receives the so-called “Certificate/Articles of Incorporation”, – the founding document of the corporation – from the office of the “Secretary of State”. An official inaugural meeting must still be held before the company can become ready to operate. In larger corporations, for example, this is used to select the members of the Board of Directors. The inaugural meeting is a mere formality if the entire corporation comprises only one person.