Kitty Page and Jean Scott are opening a Submarine's deli. Page and Scott need outside capital, so they plan to organize the business as a corporation. They come to you for advice. Write a memorandum informing them of the steps in forming a corporation. Identify specific documents used in this process and name the different parties involved in the ownership and management of a corporation.

o: Kitty Page and Jean Scott

Re: Steps in forming a corporation

The first step in organizing a corporation is to create a chart of accounts/file a tax return/obtain a charter from the state. The charter/chart of accounts/tax return authorize(s) the corporation to issue a certain number of shares to the bank/controller of the company/owners of the business, who are called shareholders.

The banker/controller/incorporators will need a banker/an auditor/ a set of by-laws to determine how the corporation is to be governed internally. The shareholders will elect a board of directors/an auditor/CEO/CFO/COO who in turn appoint officers to manage the corporation on a day-to-day basis. These officers consist of the CEO and CFO/CEO and COO/COO and CFO who lead the CEO/CFO/COO, who manages the day-to-day operations of the controller and treasurer.