They plan to sell their computers primarily through mail-order catalogs and over the Internet. Their accountant recommends that they organize their new business as a corporation.
Shareholders receive stock certificates as proof of their ownership in the corporation.
The accountant warns Bill, Sally and Terry that establishing a new corporation can be expensive. This may involve attorney's fees to help prepare the articles of incorporation, travel costs to file the documents at the State Capital, an initial incorporation fee paid to the State, and printing costs to print the stock certificates. The accountant explains that, in addition to the initial incorporation fees, a corporation must pay annual license fees to continue to operate within the State. The corporation will also have to be authorized to conduct business in other states. With the help of their attorney, Frank Marcus who will serve as the registered agent of the new corporation, the incorporators file the articles of incorporation with the State.