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Having your own catering business is a great way to work on your own terms and build a successful future. But before you can get started, you need to form a corporation that will protect your personal assets while allowing you to take advantage of certain tax breaks. To form a C-corporation—a business where profits are passed through to shareholders—follow these steps:
Choose a name for your catering business that is easy to remember, a name that is unique, a name that is not too long, and, most importantly, never chooses one that can be easily confused with an existing company.
To make sure that no one else is using your desired business name, do an internet search for variations on your proposed name (for example, “Catering Company,” “Food Service,” etc.). If you find another business using that name online or in any publicly available records (such as state or county websites), this means that there may be restrictions on how you can use that particular word combination when forming your own corporation. In some cases, these restrictions present very real legal problems for companies trying to operate under these names; therefore it is important not only to check whether there are other businesses already using those names but also whether such businesses are legally allowed under their jurisdiction’s trademark laws.
This means filing articles of incorporation with the secretary of state’s office in your state. If you are forming a limited liability company instead of a corporation, you’ll also have to file a certificate of formation with your state. If you’re forming a nonprofit corporation, then you should file a certificate of organization with your state instead of an article of incorporation or certificate of formation.
In addition to registering as a C-corporation in whichever states they operate within, all corporations should also register as domestic companies if they will be doing business outside their home country.
The articles of incorporation are the official document that establishes your corporation. They should include the name of the corporation and its registered agent, as well as the names of all corporate officers (president, vice president, secretary, and treasurer) and directors. In addition to this information, it’s important to include details about how your company will be managed—that is, who has authority over decisions regarding finances or legal procedures. This section should also state what your business does and list any restrictions on shareholders’ rights that may exist for this specific type of C-corporation.
A registered agent is a person or company that handles legal matters for the corporation, including receiving legal notices and documents and filing them with the state. The registered agent must be a resident of the state where the corporation is formed.
Determine who will be the first on the board of directors, and decide on the number of directors. Decide on the length of their terms. Decide on procedures for electing new directors and providing for succession in case any director ceases to serve before his or her term expires.
Now that you have formed your corporation and obtained a tax ID number, it’s time to appoint officers and create bylaws. The board of directors will be responsible for managing the business on a day-to-day basis. The secretary is the office manager who keeps track of any legal documents, such as contracts or leases. The treasurer handles all financial aspects of the company, including taxes and payroll deductions.
Stock certificates allow owners to transfer their ownership rights over time by recording who owns what at any given moment in time. This means that when someone buys shares from another owner, they can record both parties’ names on an official document confirming this transaction took place and which party received what amount for selling their stake or buying more respectively!
These documents will prove very useful later on when deciding how much money an owner should receive after paying off his/her debts before donating profits back to charities supporting disadvantaged communities around them.
You’ve been working on your catering business for years and now you’re ready to incorporate. Congratulations! You’re probably wondering if it’s worth the trouble of going through all the paperwork, not to mention paying all those fees.
The answer is yes, because forming a C-corporation as a small business owner is a much better option than using an LLC or S-corporation. As we’ll discuss later in this article, C corporations are subject to double taxation, but they offer other advantages that LLCs and S corps don’t offer.
If you want more information about how incorporation works for catering businesses specifically—and why it’s so important—read on!
Forming a C-corporation is a big step. Once you’ve completed the process, you’ll be ready to operate your catering business and grow your business to new heights.
Register Your Trademark & Get The Delivery of your USPTO Serial No. In 24 Hours
Register Your Trademark with USPTO Today & Get Serial No. in 24 Hours