What is the cost of a simple corporation?

Generally you will need to arrange for an initial consultation to discuss the options available to you in forming a new business entity. Sometimes an LLC or limited partnership is more appropriate, sometimes an S-Corp or a C-Corp will work better for you. We will need to consider the nature of your business, your liability exposure, whether you will have employees, the number of owners, and the range of income you expect. In reviewing that information, we should be able to decide on the best form of entity, and whether it should be formed in Texas or Nevada (now the "choice" above Delaware if we need to form the entity out of state). That initial review is typically completed within a one hour consultation session, and the cost is $300.

The cost of forming an entity varies with the type of entity and the complexity of your situation. Assuming you decide to form a corporation for a start up business, and it is to be owned solely by you (or a husband and wife) I charge a set fee of $1000 for the following:

• Prepare Articles of Incorporation.
• Sign and file the Articles with the Secretary of State.
• Track and coordinate receipt of Certificate of Incorporation.
• Prepare bylaws that are appropriate for a small corporation.
• Prepare Organizational Minutes with specific matters relevant to you and your business.
• Prepare the offer to purchase shares.
• Prepare a standard credit line note, so the corporation can borrow from you.
• Prepare the Form SS-4 and the Form 2553 [S-Corp only].
• Prepare a memo of instructions for a new corporation.
• Issue stock certificates and enter same in the transfer ledger.
• Meet with you to sign the documents and answer your follow up questions.

The following additional expenses will typically be incurred:

State of Texas filing fee (one time set-up fee): $325
Corporate Book, Certificates, Seal and Ledger: $75

When might additional expenses be incurred?

If this is an existing business and you will be transferring assets to the corporation, I will charge based on the time required to assist you in determining the capitalization or purchase price for those assets and document the transfers.

If you need more than one hour of attorney time to discuss whether you need a corporation, tax ramifications, entity selection, buy out issues and management issues (when multiple owners are involved), employee issues, contract matters, purchases, conversions from a proprietorship, business transactions, or other such matters, I will charge an additional amount, based on the time required.

You may need, as an example, employment agreements, contractor agreements, buy-sell agreements, publication notices (if this in a conversion of an existing business). These would be billed separately, based on the time it takes for the needed tasks, or an agreed set fee if the time requirements are well defined.