How to form a C-corporation for Beauty


In this guide, we’ll walk you through the steps to form a C-corporation for your beauty business. We’ll cover how to choose a name for your corporation, register it with the state, and determine the number of shares of stock that you want, create bylaws and hold a meeting of the incorporators. Finally, we’ll show you how to issue stock certificates so that each shareholder has proof of ownership in their part of the business.

Step 1: Choose a Name for Your Beauty Corporation

The first step to forming your beauty corporation is choosing a name. You will want to choose a name that is easy to remember, not too long and not already taken. Your company’s name should not have any negative connotations either (i.e., “Ugly”).

Step 2: Register Your Beauty Business Name

  • You can register your business name with the state as a sole proprietor, which means you’ll be personally liable for any debts or damages your business incurs. Or, you can register it as a corporation so that all of its debts and liabilities fall on the corporation itself, not you personally.
  • Register your business name with the federal government. You’ll need to register online at the United States Patent and Trademark Office (USPTO).

Step 3: File Articles of Incorporation with the State

Articles of incorporation are a document that sets out the fundamental details of your business. They include information such as:

  • Name of the corporation (this should be unique for each state)
  • Purpose and duration of the corporation
  • Registered agent’s name, address and phone number (you may want to use your own contact information if you don’t have an office yet)
  • Number of shares available to be sold by shareholders (you can just put “0” in this box)

Step 4: Determine the Number of Shares of Stock

One of the first decisions you’ll make as a business owner is deciding how many shares of stock your beauty corporation will have. The number of shares determines who owns the company, and in turn, how much money each owner gets paid if there’s ever a sale or dividend.

Here are some factors to consider when deciding on the number of shares:

  • Number of owners—if you’re planning to be one owner with multiple locations, then each location would get its own share. If you’re working with partners or investors who want to buy their own share, then consider what type of interest they can expect from their investment—for example, if they plan to sell off parts gradually over time rather than immediately after purchase (which might happen if they were looking only for short-term profits).
  • Value/worth—How much value do we want this company to hold? How much money do we think it should generate per year? These questions may sound clichéd, but they help determine whether our business will be worth millions or hundred thousand dollars per year based on average revenue per employee versus projected expenses; thus making sure that whatever percentage each person owns matches up with how much value he puts into creating this organization together.”

Step 5: Create Corporate Bylaws

By creating corporate bylaws, you will ensure that all members of your company agree on a set of rules for making decisions. In addition, these documents ensure compliance with state law regarding corporations.

You can use an online service or hire an attorney to help create your corporate bylaws.

Step 6: Hold a Meeting of the Incorporators

The people who form the corporation are called “incorporators.” Usually, this is just another name for your founding shareholders as well. The incorporators meet and decide on the initial corporation structure. You will want to decide what kind of C-corporation you want to form—a regular or close corporation—and whether it will be a single-member or multiple-member LLC.

Step 7: Appoint Directors

The directors are responsible for the management of the corporation. They can be removed by shareholders if they do not perform their duties properly. Directors must be natural persons and at least 18 years old.

Step 8: Issue Stock Certificates

A stock certificate is an official document that represents the ownership of shares in a company. In this step, we will discuss how to issue a stock certificate for your new beauty brand.

First, you need to make sure that all of the shareholders of your corporation agree on how many shares should be issued and who should own them. If there are multiple shareholders, then each shareholder must sign an agreement stating that they agree with this arrangement before proceeding with issuing any stock certificates (this process is called “certifying” their consent). Once everyone has agreed on these details and signed off on them, it’s time for the issuing process itself!


When you’re ready to expand your beauty business, a corporation may be the right choice. It offers greater legal protection than a sole proprietorship or partnership but still allows you to run it as a small business. And as we saw above, forming one doesn’t have to be difficult! Just remember that if you do decide on this kind of structure, you and your shareholders will be responsible for filing annual reports with the state and paying taxes on profits earned by the company each year.

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