A teenage corporation?

Question

High,

me and my friend were thinking of opening a small business, and I wanted to know, what are the legal steps I need to take? How about financial? I am a minor and have a joint account with my parents, and my friend doesn't have one yet but will be 18 in a few months, and anyways could open a joint account.

What financial and legal steps will I need to take? What about taxes?

Basically, how does it all work?

Answer 1

Here are a few things about incorporating in North Carolina.

Corporate Name Endings

Must contain words "corporation", "incorporated", "company" or "limited" or an abbreviation corp., inc., co., or ltd. May not contain language stating or implying corporation is organized for purposes not permitted by the Act and its articles. Must be distinguishable from name of domestic, foreign, or non-profit corporation, or the reserved or registered name of a limited liability company or partnership.

Articles of Incorporation Requirements

Director Information

* Minimum Number - One or more.

* Residence Requirements. - No provision.

* Age Requirements - None.

* Directors are not required to be listed in the articles of incorporation.

Officer Information

* The officers are not required to be listed in the articles of incorporation.

Stock Information

* No extra filing fees based on number of share or amount of par value.

Yearly Requirements

* Annual Statements

* Domestic corporations and foreign corporations authorized to transact business in North Carolina must file an annual report with the Secretary of State within 60 days following the last day of the month in which the corporation was incorporated (or received a certificate of authority). Filing fee, $20.

Income Tax Rate

* Income Tax Rate - The income tax rate is 6.9% in 2000 of net income allocated and apportioned to North Carolina. Payment must be made by March 15 (15th day of 3d month) to Secretary of Revenue.

Franchise Tax Rate

* A franchise tax is also assessed. The rate is $1.50 per $1000 of issued and outstanding capital stock, surplus and undivided profits allocable to North Carolina. Minimum tax, $35.

First, you must file the original and one copy of your company’s Articles of Incorporation with the Corporations Division. Make sure the following information is provided in your filing:

The name of your corporation -- Your company’s name must also include at least one of the following words or abbreviations: Company, Corporation, Incorporated, Limited, Co., Corp, Inc. or Ltd.

The number of shares of stock your corporation is authorized to issue -- You should consult with your attorney to determine how many shares of stock your company is authorized to issue. Remember that authorized capital is the number of shares your corporation can issue, not necessarily the amount you have already issued or plan to issue in the future.

The classes of stock issued by your corporation -- You should consult with your attorney to determine whether you should separate your corporate stock into different classes. Most corporations issue only one class of stock.

The street address and county of your registered office and the name of your registered agent-- Your registered office must be located in North Carolina. If the mailing address of your registered office differs from its geographic address, please provide both in your filing.

The names and addresses of your company’s incorporators -- State law requires that your filing list at least one incorporator. You may list more than one. Make sure that you submit the signature of at least one of the incorporators listed in your filing. You do not have to have those signatures notarized.

For more information on taxes, visit http://www.dor.state.nc.us/

Answer 2

I dont know what state you are in.  If you mentioned that it would be easy.  Basically you may or may not be able to own stock in your own company until you are 18.  You clearly cant be a registered agent.

The best thing to do is this...  go to google and type this "dept of corporations *your state*" enter.  This will get you to all the requirements or at least a phone number.

Its very difficult to answer you question as all states have different regulations and requirements.

Your question is too broad to answer on this site, your question might sound simple to you but somebody would write a 500 page thesis trying to answer it.  There are alot of questions you havent thought of.

Good luck.  I started my first company at 16 but there were alot of hoops.  As I said I dont know your state.