How To Use Corporate Kits

Corporate kits contain a collection of blank documents required to file, set up and begin operation of a new corporation.  These kits in theory can be an excellent means to organize the incorporation process.  But, not all corporate kits are created equal.  A kit that may be useful to one incorporator may be trash or even detrimental to another.

There are several reasons this may be the case, not the least of which is the fact that each state has different statutes, regulations and requirements for a valid incorporation.  What may be necessary for one jurisdiction may not be for another.  Therefore, generic corporate kits available online may not contain all of the documents required for the user’s jurisdiction.  Other kits may contain more than is required and may even confuse the purchaser.

Still, with due diligence, purchasers can find a suitable corporate kit. Compliance with state and federal regulations is vital to insuring that the corporate veil cannot be pierced by litigation.  Choosing the proper kit is the first step in protecting officers, directors and shareholders from personal liability in the face of future litigation.

Keep the purpose of your corporation in mind when deciding on which kit to purchase.  States often have subtle differences in requirements for each form of corporation.  For example, professional corporations require proof of licensure by one or more of the officers of a corporation.  This proof may need to be supplied when filing organization paperwork.  Not-for-profit entities have different requirements as well. Therefore, a kit suitable for a standard C. corp. may not contain the parts necessary to organize a not-for-profit entity

Before deciding on which kit to purchase, make a visit in person or online to the office in charge of regulating and maintaining corporate filings.  In most cases this will be the Secretary of State or a similar agency.  Get a list of the documents required to properly file for incorporation in the form best suited to the proposed business enterprise.  Next, search online or in legal stationary stores for the kit that best fits your needs.

Finally, it is also important to take into account the business experience of the parties involved.  Experienced officers should require only a bare-bones kit with fill-in spaces.  Less experienced incorporators may need a more detailed kit. For some, professional legal assistance, rather than a kit, is the best choice. Don’t rush. Take the time and do the homework necessary to make the right choice.


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