A Mind Mapper Approach To Organizing A Corporation

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All states have different rules and regulations for the organization of a corporation

But there is a general approach that most incorporators should keep in mind in setting up the corporation. It can be a daunting task in complying with all the rules and using a mind map will aid the incorporator in this task. There are a variety of ways the mind mapper could create mind maps on this subject matter. For instance, the incorporator could hand draw the mind map or they can use software. Each has its advantages but the most important thing is to include all information that would aid in the organization of the corporation. The last thing any incorporator wants is to leave out some important part of the process and have to start over again. Or, even worse, failing to set up the corporation incorrectly that could lead to liability on the part of the incorporator.
The incorporator could use mind maps for each specific stage of the process. But to begin with, the incorporator should create a master mind map so that the big picture may be understood. Additionally, the mind mapper incorporator could use these mind maps as presentations, in meetings, and in their business plan. Any person reading the mind map will therefore better understand the subject matter and the business purposes. Some things that may be included in the master mind map are as follows (also see attached mindmap) :

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1. Formation Requirements:

A. People: Incorporators. Must have at least one incorporator. They are responsible for signing and filing the articles of incorporation.

B. Paper: Articles of Incorporation. Should include the corporation purposes. The articles are considered the contract between the corporation and shareholders and between the state and corporation. Should also include the corporate, name and address of each incorporator and of each registered agent. Also include the statement of duration and capital structure.

C. Act: the incorporation must file the articles with the state and pay an incorporation fee.

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Mind Mapping for Business
Mind Mapping is a great tool for business plans, project management, marketing plans, solving problems, giving presentations and to increase productivity.

2. Legal Significance of Formation of Corporation:

A. The internal matters of every corporation are ruled by the law of the state of incorporation.

B. A corp is a separate legal person and usually grants limited liability to the directors and officers of the corporation as well as to the shareholders.

3. De Facto Corporation & Corporation by Estoppel:

A. An incorporator should be aware that a failed attempt to incorporate may still result in the court treating the failed entity as a corporation. This is why a master mind map is extremely useful as it makes this possibility less probable.

4. Bylaws:

A. In many states, a corporation does not have to have bylaws in place at the time of incorporation. Usually, once the corporation is formed, the board of directors adopts the bylaws to which shareholders may approve or repeal. Bylaws cannot conflict with the articles of incorporations and if there is a conflict, the articles control.

5. Pre-Incorporation Contracts

A. Promoter: another reason why a master mind map is extremely useful is the fact that incorporators and promoters of the corporation may be liable for preincorporation contracts. Usually, once the corporation is formed, the corporation will submit a novation whereby the corporation assumes all contracts formed prior to incorporation. But if the incorporator fails in the organization of the corporation, the contract burden may fall on the promoter/incorporator. A mind map that covers all the main requirements can help avoid this possibility.

6. Foreign Corporations

A. Every incorporator should know that if its corporation is transacting bus in a state it is not incorporated must get approval from the state. The requirements here are usually easy to meet.

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KenBax

Hi, I'm a fan of great tools that help with education and learning as well as getting things done - anything that increases productivity. Hope my lens... more »

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