TOWARDS A
FRUITFUL MINISTRY,
SAM GORE FAQ INCORPORATION Q: What is a corporation? A: A corporation is a legal entity created upon filing Articles of Incorporation with the Department of the Secretary of State. It has a legal status or existence that is separate both from the individual(s) who forms it and its owners. Q: What are the advantages and disadvantages of making your business a corporation? A: The Department cannot advise on matters such as this. Contact Sam Gore, Towards a Fruitful Ministry, or another adviser familiar with your church polity, to provide these answers. However, one sure advantage of forming a corporation is that it can protect an individual’s personal assets, and may also protect against others using your business name. Q: How do I incorporate
my business in A: First, you must file the
original and one copy of your company’s Articles of Incorporation
with the Corporations Division. Make sure the following information
is provided in your filing: Many people feel this is
all they have to do to become incorporated. There is much more
that will have to be done, and with the uniqueness of the church,
it should be done by someone with experience. NOTE: This
is a very important step. Much work will need to be done prior
to taking this step and after to assure all of the church’s assests are
placed into the corporation. Sam Gore, provides
all the steps needed to assure church members will be protected. Q What about our Church’s Name? A. Your church’s name can be kept. However your official legal name will have to include at least the abbreviation Inc. It is often the case where church have the same name as another. When this occurs we simply add as part of the legal name, the county or city. Q: Where do we file Articles of Incorporation? A: The Corporations Division, Q: How much will it cost to file my company’s Articles of Incorporation? A: The fee for church incorporations is $60 as of January 2004. This cost is in addition to the total fee paid to Towards A Fruitful Ministry. Q: Do I have to hire an attorney to incorporate? A: No, a consultant is all
that is needed. Sam Gore does work with an attorney
and accountant during the incorporation process to make sure
any legal questions concerning your incorporation, such
as taxation, liability of the owners and other issues not directly
related to the incorporation, are answered. Please keep in mind that, while we will
do everything we can to make the incorporation process
as easy as we can for you, we can only act in an administrative
capacity. We cannot offer you legal advice or opinion on your
particular filing. For this reason, the attorney used
by Towards A Fruitful Ministry is
an expert on church incorporation. These services are included
in the fee. Q: Can
the Secretary of State’s office answer questions regarding
the legitimacy of a corporation? A: No. The Secretary
of State can only tell a client how long a company has been
incorporated and if it is in good standing with the agency.
For questions on legitimacy, the client should contact the
Attorney General’s Office, Consumer Protection Office, www.jus.state.nc/Justice/cpsmain. Q: What
do I do once my Articles of Incorporation have been filed
with the Department of the Secretary of State? A: There are several more steps you’ll need to take before you can actually begin operating as a corporation. You’ll need to:
Q: What are a registered agent and a registered office? A: A registered agent can be one of three things:
The registered agent need not
be the incorporator of the corporation, Sam Gore and Towards
A Fruitful Ministry will serve in this area. The only duty
of the registered agent is to forward any notice, process or
demand that is served on the registered agent, often by a deputy
sheriff, to your corporation at its last known address. The
registered office may -- but need not -- have the same address
as any of the corporation’s places of business. Under Q: How will I know when Articles of Incorporation have been filed? A: Once your Articles of Incorporation
have been filed, you will receive a certified copy of them
from the Department of the Secretary of State. Q: Do we need to have By-Laws? A: Yes. By-laws
are the second major corporate document. The By-laws are a
contract, an agreement among the members upon how the corporation
will conduct its affairs. Q: What if we already have
By-laws? 1. They
will need to be updated and revised. This is a process that
will require the church to elect a committee and several meetings
will need to be held until the church gives its approval. Our
consultant will facilitate and assist in these meetings. Q: What if we do not have
By-laws? A: The
consultant will help the committee develop new By-laws. Assistance
is also provided and is included in the fee. Q: You have mentioned “a
fee” several times throughout this document; how much
will it cost for your consultant to take us through the process
of incorporation? A: It depends on how much will
need to be done, especially as it relates to whether or not
the church has By-laws. The fee ranges from $500-$800 total.
The only additional cost for the church will be the cost of
transferring major documents into the corporation’s name.
This is usually is very minimal. This process cannot be done
by our organization; it has to be done by representatives of
the church (probably trustees). Meetings held by us prior to
the church voting to go through the process, will be deducted
from the total cost of the process. They run $75 plus mileage
to and from your church. Q: How long will the process
take? A: It depends on the church
and its willingness to meet with the consultant and with the
committees. Normally no more than 5-8 months. Q: How do we get started? A: All
you have to do is to contact Towards A Fruitful
Ministry. That’s all there is to it. NOTE: Please be advised that only those with experience
with the uniqueness of church polity should be secured to help
in the process. Many church’s believing to be
incorporated are actually not due to a lack of knowing what
to do. |