Incorporation Checklist
Here is a checklist of tasks related to incorporating a business in Massachusetts. Other states have similar rules. All of this is a pain in the neck – and expensive. But savings should come later in lower taxes and other benefits.
TASK |
WHO SHOULD DO IT? |
NOTES |
| Choose opening date for the new corp | You | SHOULD be but doesn’t have to be the FIRST of of a month – ie, July or August. |
| File Articles of Incorporation with the Secretary of State Fee | Lawyer | Will cost $200 |
| File Form 2553 to Elect to be an S Corporation if planned as part of your tax strategy | Lawyer or Accountant | Don’t miss the deadline! |
| Qualify a fictitious name if you are using one | Lawyer | |
| Prepare your bylaws | Lawyer | |
| Hold your shareholders meeting | You or a Lawyer | Even if it’s just you! |
| Hold your board of directors meeting | You or a Lawyer | Even if it’s just you! |
| Issue your stock and collect appropriate money | You or a Lawyer | |
| Determine whether a professional license is needed | You and your Lawyer | |
| Secure your local occupational license | You, Lawyer, or Accountant | |
| Secure tax returns for quarterly filings | You or Accountant | |
| Register to pay sales tax with states in which you will do business | You and Accountant | |
| Call your town office about personal property taxes | You or Accountant | |
| Check on worker’s comp payments | You | See if you can switch existing policy |
| Check if leases need to be re-documented (i.e., with landlord) | You | |
| Apply for Federal Tax ID # | You and either Lawyer or Accountant | |
| Open corporate bank account with corp Tax ID# | You | |
| Set up new computer accounting file – post opening entries | You and Accountant | |
| Choose a salary amount for yourself - must be reasonable |
You | |
| Set up a new payroll file with your payroll service | You and Payroll Service | |
| Secure required employer posters and hang them as required | Accountant | |
| Update business cards and stationery to reflect corporate status | You | |
| Have annual meeting | You and Lawyer | File minutes in corporate book. Include shareholders AND directors |
| Pay annual corporate fee | You and Accountant | It’s $109 to the Secretary of State if you pay by credit card or $125 if you pay by check, plus $456 to the Dept of Revenue |
John Schachter + Associates Inc. has helped lots of businesses incorporate. Please let us know if we can help you!
