How to form a C-corporation for Education

Introduction

The process of forming a corporation is made easier by having the proper legal documents. These include articles of incorporation, bylaws, and corporate records book. The steps taken to form a corporation are:

Decide on a name for your corporation

You’ll need to select a name that is not already in use and check with the secretary of state or business division of your city, county, or state to make sure it’s available. The IRS has helpful information about choosing an appropriate business name.

Select a Registered Agent

You’ll need a registered agent, who is typically a person or business that is authorized to accept legal documents on behalf of your corporation. The person or business must not be related to you, and they must also have an address in the state where your business was formed.

If you decide to use a C-corporation for education, keep in mind that it’s not necessary for you to hire an employee or even pay yourself wages from the company. You can just operate as an independent contractor if you choose this option—but if you want some help with bookkeeping and taxes, then hiring someone else will save both time and money over filing everything yourself every year!

Prepare Articles of Incorporation

This is the document that establishes your corporation as a legal entity and outlines its purpose, name, and other details. In some states, there’s an official form you need to follow; otherwise, it just needs to be in a format that’s acceptable to the state.

The articles should include signatures from all shareholders; they’re not legally binding until each person files them with their state agency responsible for businesses (usually called “the Secretary of State”). Additionally, every article should include:

• A statement on purpose
• The name of your corporation—this should match its legal name.

Draft bylaws

They set out the rights and responsibilities of directors, shareholders, officers, employees, and other stakeholders.

In contrast to bylaws are corporate rules—the policies and procedures governing your organization’s daily operations. Corporate rules can also be called bylaw amendments or resolutions because they change or amend existing bylaws (which are often referred to as “articles”).

A well-drafted set of corporate rules will allow you to run your company smoothly without having to worry about a lot of minutiae every time something happens. They’ll make sure everyone knows what their roles are, what they’re responsible for doing, when things need doing by certain deadlines—and much more!

Create an Organizing Meeting

• The first step to creating a C corporation is to hold an organizing meeting. The purpose of this meeting is to establish bylaws, elect directors and officers, and decide on any other necessary business items.
• Before the meeting begins, make sure everyone who is expected to attend has been notified of the date, time and location—and remind them once more before they arrive so that they don’t miss it!
• Keep minutes of what happens during the discussion: who said what, how long each speaker spoke for and any disagreements that came up during discussions about whether or not certain actions should be taken at all. If there are any conflicts among shareholders or between them and directors/officers after your corporation is created then these notes may help resolve those problems later on down the road when disputes arise between them because no one really remembers exactly what happened during their last big argument over something trivial like whether or not we should spend our rainy days making muffins instead of working out new ideas for math apps for kids.”

Create corporate records book

You need to keep a record of the corporate minutes. This is the official record of all actions taken by your corporation’s board of directors, officers and shareholders. You should also make sure that you keep a copy of any resolutions or consent agreements that are entered into by the board of directors.

Keep track of all stock certificates issued as well as records showing who owns them and what their number is. If there is more than one class of stock, then keep records for each class separately.

You’ll also want to make sure that you have copies of your corporate bylaws in case they ever become necessary during an audit or legal proceeding.

You will also want to make sure that your corporation keeps accurate financial statements including balance sheets and profit/loss statements for each year it exists plus supporting documentation such as invoices for expenses incurred along with payments made by check or ACH.

File Articles of Incorporation with the State and Pay Fees

The Secretary of State will charge you a filing fee and an annual fee each year your corporation is in existence.

The filing fees for corporations are:

• $50 for filing articles to create a corporation
• $150 for filing articles to amend articles and or bylaws, or both
• $150 for amending articles only (no change to bylaws)
• $200 for issuing stock in excess of par value (for example, preferred stock that has no par value)

Obtain a Tax Identification Number

• This can be done by applying for an EIN (Employer Identification Number) with the IRS. You will need to fill out Form SS-4 and mail it in, or fill out Form W-7 and submit it online.
• The EIN is a federal tax identification number that business owners use to pay taxes on their corporations. It’s also used as a way of identifying your company when filing annual reports, making payroll deductions, or opening up bank accounts. If you are setting up an educational C corporation, this number should be used exclusively within that organization so that each individual department can receive money from their own personal accounts while still receiving funding from others within the same official structure.

Apply for any necessary licenses and permits

Your C-corporation needs a few licenses and permits before it can start operating. These include:

• An Employer Identification Number (EIN) from the IRS. You’ll need to complete Form SS-4, Application for Employer Identification Number (EIN).  It is used by the IRS to identify your business and any taxes that you owe. It’s also used by banks to identify you as a corporation when opening an account, which can be helpful if you want to apply for a small business loan in the future.
• A state business license or certificate of authority, depending on where you’re based out of and what type of entity your LLC will be considered under state law.

Be sure to follow all rules and regulations to form your corporation correctly

If you need help in forming your corporation, please consult an attorney. Be sure to follow all of the rules and regulations of the state where you incorporate as well as any other applicable laws.

Conclusion

After you’ve formed your corporation, be sure to keep all of your records in an organized and up-to-date manner. This will help you avoid any legal issues with the IRS or state government later on down the road!