When incorporating a business, which one of the following is not a major step to take?
A. Filing your employee policies with the proper state agency
B. Holding an incorporator's meeting
C. Preparation of bylaws
D. Preparation of articles of incorporation
To determine which one of the options is not a major step when incorporating a business, we need to understand the process of incorporating a business.
Incorporating a business involves turning a business into a legal entity separate from its owners. This provides certain legal protections and advantages. Here are the typical steps involved in incorporating a business:
1. Choose a business name: Select a unique name for your business that complies with state requirements.
2. Articles of Incorporation: Prepare and file the articles of incorporation with the appropriate state agency. This document includes important information about your business, such as the name, purpose, and location.
3. Registered Agent: Appoint a registered agent who will receive legal and official documents on behalf of the company.
4. Bylaws: Develop and adopt the bylaws, which outline the internal rules and regulations of the business, including governance structure, meetings, and decision-making processes.
5. Incorporator's Meeting: Hold a meeting with the incorporators to formally establish the corporation, elect initial directors, and approve the bylaws.
6. Employee Policies: Create and implement employee policies, including employment contracts, benefits, and workplace policies.
Now, let's evaluate the options:
A. Filing your employee policies with the proper state agency: This is not a major step when incorporating a business. While it's important to develop employee policies, filing them with the state agency is not a standard requirement during the incorporation process.
B. Holding an incorporator's meeting: This is a significant step when incorporating a business, as it establishes the corporation and approves the bylaws. It is usually required by state laws.
C. Preparation of bylaws: This is an important step in incorporating a business, as bylaws govern the internal operations and decision-making processes.
D. Preparation of articles of incorporation: This is a crucial step when incorporating a business, as it formally documents and registers the creation of the corporation with the state.
Based on the analysis, option A, filing employee policies with the proper state agency, is not a major step when incorporating a business.