In addition to filing articles of incorporation, you must create "corporate bylaws." While bylaws do not have to be filed with the state, they are important because they set out the basic rules that govern the ongoing formalities and decisions of corporate life, such as how and when to hold regular and special meetings of directors and shareholders and the number of votes that are necessary to approve corporate decisions.

Finally, you must issue stock certificates to the initial owners (shareholders) of the corporation and record who owns the ownership interests (shares or stock) in the business.

Retaining Corporate Status

Corporations and their owners must observe certain formalities to retain the corporation's status as a separate entity. Specifically, corporations must:

• hold annual shareholders' and directors' meetings
• keep minutes of shareholders' and directors' major decisions
• make sure that corporate officers and directors sign documents in the name of the corporation
• maintain separate bank accounts from their owners
• keep detailed financial records, and
• file a separate corporate income tax return.