How to form a C-corporation for Engineering


If you’re an engineer who wants to start a business, the first step is the same as for any other type of entrepreneur: decide on your business entity. One option is to form a C-corporation. This article will explain what that means and how to go about forming one so you can get started with your new engineering business as quickly as possible.

Decide on the name of your C-corporation

  • The name of your C-corporation should be unique, available, and easy to remember, spell and pronounce.
  • The name should not be offensive or infringe on someone else’s trademark.

Appoint directors

  • Directors are the officers of the corporation, who have a fiduciary responsibility to act in the best interests of the shareholders and not for themselves. The bylaws will set forth procedures for electing and removing directors; you can also appoint them yourself. In addition to being natural persons, directors must be at least 18 years old and cannot be convicted felons.

Create corporate bylaws and adopt them

Corporate bylaws are rules that outline how your company will operate, like its mission statement or how many meetings it will hold per year. By creating these documents, you’re setting up an official framework for how your company operates internally—and this helps protect both you and your employees from potential liability issues down the road. For example, if a work to be done on-site in some way that violates safety procedures outlined in your bylaws, he or she may be able to sue for damages; however, if those same procedures are laid out clearly within their employment contracts as well as other legal documents (such as an employee handbook), then they won’t be able to claim negligence on behalf of either party because there was nothing wrong with the following procedure!

Hold your first meeting of the board of directors

The board will be responsible for making decisions on behalf of the corporation, including hiring officers and approving contracts with other companies.

As part of this meeting, you should also approve any minutes from previous meetings that have been recorded by your secretary (if you have one). In addition, you can elect new directors and officers as well as announce any upcoming events or changes in company policy. Be sure to close the meeting by thanking everyone for coming before adjourning!

Issue stock certificates

You must issue each share of common stock or preferred stock in either the name of its owner or in the name of an agent for the service of the process. When issuing shares, you may also elect to have them bear the signature of one or more officers or directors on behalf of the corporation. In addition, if you’re issuing multiple classes of shares, it is recommended that each class have its own certificate form so that there are no misunderstandings about what class a particular certificate represents and which rights and restrictions apply to each class.

Apply for an employer identification number (EIN)

The EIN is used to identify your business for tax purposes and wages, and it’s also needed to open business bank accounts. To apply for an EIN, visit the website for Internal revenue service.

Forming a C-corporation is a good way to build structure into your engineering business

This type of legal entity provides several advantages for businesses that need these kinds of protections.

  • It protects your assets from lawsuits by limiting the liability of shareholders and directors. If someone sues you, they can only go after the company’s assets, not yours personally; this means you’re protected from losing everything you own in case of an accident or lawsuit.
  • It attracts outside investors who are confident in the stability and growth prospects of your company. Investors like it when companies have some kind of legal protection against loss, so if yours doesn’t have one yet then it might be worth looking into creating one before approaching potential financiers about funding projects together.
  • It makes employees feel safer when making decisions that could affect others negatively (for example: refusing overtime requests). When employees feel safe making such decisions on behalf of their employer/boss because they know they won’t be sued personally if something goes wrong while off duty or away from work hours.”


If you’re thinking about starting a C-corporation for your engineering business, this is the right guide for you. We’ve covered all the major steps involved in forming a C-corporation and how they relate to your business needs. Remember that forming a corporation can be complicated, so don’t hesitate to contact an attorney or accountant if you have any questions along the way!

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