How to form a C-corporation for Leather goods


Congratulations! You have decided to start a new leather goods business. Before you can do that, however, you need to form a corporate entity for your business. Your choice of entity will determine how the company is taxed and also its legal responsibilities as well as its liability protection. In this guide, we’ll walk through the steps of forming a C-corporation for your leather goods business.

Decide between C-corporation and S-corporation

C-corporations are for larger businesses and S-corporations are for smaller ones. If a business is just starting out, then it’s best to opt for an S-corporation. The reason for this is that most small businesses don’t have the money or time to invest in preparing and filing multiple tax returns, so they’re better off being taxed as sole proprietorships than partnerships or corporations.

C-corp vs S corp: Which Is Right for You?

If you want to form a C-corp, then your business must first meet these requirements:

  • It has more than one owner (otherwise it would be classified as an LLC)
  • You can issue stock shares to raise capital from investors/shareholders

Name your leather goods business

Your business name should be easy to remember, pronounce and spell. You can check this by trying to say the name aloud without reading it first. If you have trouble remembering the name or making it sound natural, it’s probably not a good choice for your leather goods company.

You’ll also want to make sure that you don’t choose a name that’s too long or too short—both things can make it difficult for customers and potential investors to remember how to refer back to your brand in conversation with others who may not know what you do yet themselves!

Choose a location for the company

In most cases, this means choosing where you want your business entity to be formed or registered. You can incorporate the company yourself by filing articles of incorporation with the state government and paying a filing fee. However, if you want an attorney or CPA to help with the process and ensure everything is filed properly, that will cost more money.

After registering as an LLC in one state using Form 8832, entrepreneurs need only register once again when they move their operations across state lines or into another country. This makes it easy for small businesses that may find themselves moving often due to seasonal demand or other factors outside their control.

Appoint an agent for the service

An agent for service of process is a person or company that acts as your representative in legal proceedings. In the event you are sued, the other party will mail any related documents and communications regarding the suit to this person or company, who then becomes responsible for forwarding them to you. Your agent also can file documents on your behalf and appear in court if necessary.

If you have employees in California or anywhere else in the U.S., it’s recommended that you appoint an agent for the service of process there as well. If one of those employees is sued, their personal address could become public knowledge and be shared with plaintiffs’ attorneys—which may lead them to contact said employee directly instead of communicating through your appointed representative.

File the Articles of incorporation

After you’ve decided on the location and type of corporation, it’s time to file the articles of incorporation with the state of incorporation. The filing fee will vary depending on where you’re incorporating. You’ll need to submit these documents:

  • Articles of Incorporation
  • Certificate of Incorporation (to be signed by a corporate officer)
  • Signature page (to be signed by a corporate officer)

Draft and adopt a corporate bylaw

The corporate bylaws govern the operation of your leather goods business and are adopted by the shareholders. The board of directors has no power to make changes to the company’s bylaws. Your corporate bylaws must be in writing and filed with the secretary of state.

Open a corporate bank account for your leather goods business

We recommend that you choose a bank that has branches near you. You should also choose a bank with good customer service, and one that has good rates and online banking features.

You may want to think about choosing a bank with a history of helping small businesses like yours get started.

They’re done!

  • You have a leather goods business.
  • You have a bank account for your leather goods business.
  • You have a corporate bylaw for your leather goods business.
  • You have shares in your leather goods business.

And that’s it! Congratulations, you now have a C-corporation!


Congratulations! If you’ve followed these steps, you should now be a proud owner of a leather goods company. This can be an exciting time as you embark on your new venture and see it grow into something bigger than yourself.

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