What is the first step to incorporating a business?

The first step to incorporating a business is to verify the capacity of each incorporator. This involves ensuring that individuals who will constitute the board of directors and the incorporation team are legally allowed to act as incorporators, which typically means confirming that they are of legal age and mentally competent, as well as meeting specific regulatory requirements.

This step is crucial because it establishes the legitimacy of the incorporation process. If any of the incorporators do not have the legal capacity to act, the incorporation could be challenged or deemed invalid later on. Ensuring that all incorporators meet the necessary legal criteria is foundational, setting the stage for all subsequent incorporation activities.

By confirming the capacity beforehand, the process can proceed smoothly, which involves drafting and filing articles of incorporation, reserving a corporate name, and preparing necessary corporate documents—all steps that follow the initial verification of each incorporator’s capacity.