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How to incorporate a small business

For many small business owners in Broomfield, incorporation can be the next logical step in the evolution of a commercial enterprise. Entrepreneur offers the following important tips on how to incorporate one’s business, as well as the benefits that incorporation offers to business owners.

The first step to incorporating a business entails filing articles of incorporation with the Colorado Secretary of State. This document details the basics of a corporation, including its name, contact information for the parties involved, primary office location and the corporation’s purpose. Bylaws are also required when filing for incorporation, which spell out just how a business will be run. Bylaws typically include a listing of duties for each party involved in an enterprise, as well as information related to the dates of shareholder meetings.  

The main advantage to incorporation is that owners remain protected from being personally liable for debts and other obligations that may arise while running a business. Easier transferability of shares is another benefit, which serves as a great method for attracting new investors. Corporations also offer an unlimited lifespan to owners (for at least as long as the business remains viable or merges with another), unlike partnerships.  

Forbes provides a few surprising statistics on small businesses, which illustrate the important role they play in driving commerce in the U.S. For instance, more than half of the workforce in 2013 was employed by small businesses (defined as those enterprises with fewer than 500 workers). Small businesses also create a wealth of new opportunities for workers, with 65 percent of new jobs available since 1995 coming from the small business sector.


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