How to form a C-corporation for Firearms

Introduction

If you’re looking to form a corporation for your firearms business, there are many things to consider. In this guide, we’ll go over the process of forming a C corporation for firearms and provide resources for filing articles of incorporation and applying for an EIN. We’ll also cover choosing the right name, setting up bylaws and holding initial board meetings.

How do you form a C-corporation?

To form a C-Corporation you must register your business with the state your company will be operating in and file paperwork with the Internal Revenue Service (IRS), which names it as a separate taxpaying entity. Unlike an S-corporation, which is taxed only once, at the individual shareholder level, C-corporations are taxed at both the business level and then again at the personal shareholder level. There are numerous benefits to forming a C-corporation; however there are downsides as well. This guide will go over how to form a C-corporation for firearms including filing articles of incorporation and applying for an EIN.

Forming a Firearm Corporation

A C-corporation is a legal business entity that operates independently of its owners, who do not take, responsibility for the company’s debts and liabilities, unlike sole proprietorships and partnerships. This allows C corporations to protect personal assets from lawsuits or debts incurred by the corporation.

The advantages of forming a firearm corporation include unlimited life span, perpetual succession (as long as there are shareholders), limited liability protection for all shareholders and directors, transferability by sale or gift, ease of operation in other states with no need to register new corporations there each time you move your business across state lines.

Choose a Name for Your Corporation

A good rule of thumb is that the name should not be confusingly similar to an existing corporation or trademarked product, nor may it be offensive or misleading.

The “correct” length is up for debate, but most agree that somewhere between two and five words are ideal; this allows you to include all the important information about what the company does without being too long for people to remember.

File Articles of Incorporation

Corporations are run by a Board of Directors and officers; these people are responsible for making decisions about how the company operates and funds itself during its lifespan. The corporation itself pays taxes on items such as income and property at both the business level (the corporate tax rate), as well as again on individual shareholder levels when those shareholders receive dividends from the corporation’s profits.

Appoint Initial Corporate Officers

Officers are the people who have the authority to represent your corporation in various ways, including running day-to-day operations and signing documents on behalf of the company.

Generally, you will want at least three corporate officers: a president, vice president, and secretary. While these titles can be used interchangeably depending on which state you’re incorporating in, they still have different job descriptions. The president is typically responsible for leading board meetings and directing strategy; vice presidents handle day-to-day operations, and secretaries keep track of records such as minutes from board meetings or official correspondence with clients or vendors. You can appoint yourself as an officer or hire someone else for each position if you prefer—it’s up to you!

The process varies from state to state but generally involves filing paperwork with your local Secretary of State office.

Get an Employer Identification Number (EIN)

This is a tax identification number that the IRS issues to businesses, and it’s used for business purposes. You can apply for your EIN online or over the phone by calling.  It’s also possible to get an EIN in person at any one of their local offices around the country.

Create Bylaws

You can create bylaws to establish and maintain the standards for how your corporation will be run, including the following:

• How many directors do you have on your board of directors
• The frequency of board meetings
• How often shareholders must meet

You can also decide whether shareholders need to vote on certain matters, such as:

• Whether to approve major changes in policy, like mergers or acquisitions, changing management or selling assets

Hold Initial Board Meeting

A board meeting is a gathering of an organization’s members or officers. The purpose of the meeting may be to discuss new business, review and approve minutes from previous meetings, or other routine matters. A typical agenda for this initial meeting might include:

• A discussion about how often future meetings will take place and who should attend
• Approval of minutes from past meetings
• Reviewing any pending applications from interested parties who wish to purchase shares in your company; making sure they meet all requirements outlined in your corporate charter; and setting expectations regarding when they will be granted shares if they are accepted as new shareholders

Open Corporate Bank Account

This can be done at any bank in your area (if you prefer one with a branch that is near your work, that’s fine). When opening an account, ask the bank representative if they offer business credit cards and debit cards. If so, you should apply for them right away. You’ll also want to set up a business checking account with the same institution as the other two accounts.

Conclusion

If you’re looking to form a corporation for your firearms business, the process is relatively simple. The most complicated part of the process is choosing a name that won’t be too similar to another companies. Once you have your name picked out and have filed articles of incorporation with your state, all that’s left is to apply for an Employer Identification Number with the IRS and open a corporate bank account.