See Plan for Ownership Changes with a Shareholders' Agreement for more information. Holding a First Meeting of the Board of Directors After the owners appoint directors, file articles of incorporation and create bylaws, the directors must hold an initial board meeting to see to a few corporate formalities and make some important decisions. Additionally, if the corporation will be an S corporation, the directors should approve the election of S corporation status. You should not do business as a corporation until you have issued shares of stock. Issuing shares formally divides up ownership interests in the business.
Registration takes time and typically involves extra legal and accounting fees.
Fortunately, most small corporations qualify for exemptions from securities registration. And most states have enacted their own versions of this SEC exemption. Get help from a good small business lawyer. For more information about federal securities laws and exemptions, visit the SEC website . For more information on your state's exemption rules, go to your Secretary of State's website.