Choose a Business Structure and Set Up Company Records

A. Finished-Project Specification

Quantity: one professionally reviewed and registered business structure, one documented ownership and authority record, one corporate-record book with the sections listed in Section G, and one completed and approved business-setup checklist.

B. Document Schedule (Component Schedule)

Document	Quantity	Format	Content Required	Preparation / Purpose
Official formation/registration documents	1 set	Official filed or issued documents	Legal name, entity type, filing date, registered agent, taxpayer identification	Establishes the legal identity used by every later license, policy, and contract
Ownership and authority record	1	Written record	Owners, percentages, contributions, managers, officers, qualifier, authorized signers	Controls who may bind the business and how ownership is divided
Signing-authority matrix	1	Table	Contracts, checks, credit, payroll, hiring, purchases, debt, legal filings by authorized person	Prevents unauthorized commitments across all later chapters
Corporate-record book	1	Physical or digital binder/system	Sections listed in Section G, with access controls	The single company record system used for the rest of the book
Business-setup checklist	1	Checklist	Completed, pending, not-applicable, and professional-review items	The controlling approval record for this project

C. Information Takeoff

• Chapter 1 inputs: the approved Business Model Statement, service-area and project-fit matrix, customer-fit checklist, and stop-work list, gathered before Step 1.
• Ownership information: every proposed owner's name, percentage, contribution type, and proposed role, gathered before Step 6.
• Professional input: at least one attorney or CPA for structure comparison, and the bank, licensing authority, or insurance broker as the specific question requires.
• Registry information: the official secretary of state or business registry and tax-authority application requirements for the jurisdiction of formation.

D. Acceptance Standards

Check	Standard
Structure comparison	At least two structures were compared on ownership, liability, taxation, continuity, and licensing fit, and the decision is documented with reviewer comments
Structure and license compatibility	The selected structure is confirmed permitted for the applicable contractor license or professional relationship
Registration	Legal name availability was verified, and official formation/registration documents and taxpayer identification were obtained
Ownership and authority	Owners, percentages, contributions, and signing authority are documented and consistent with the registered structure
Record system	The corporate-record book contains every section listed in Section G with a defined access-control rule
Separation of funds and identity	No personal asset, vehicle, tool, contract, or bank account is being used by the business without a documented ownership, lease, reimbursement, or insurance treatment
Professional review	At least one attorney or CPA has reviewed the structure and the bank and licensing authority have confirmed applicable requirements before approval

E. Structure Comparison and Ownership Documentation

1. Identify the jurisdiction of formation and the jurisdictions where the business will operate. Copy this list directly from the approved Chapter 1 service-area and project-fit matrix.
2. List the business structures available for professional review, including sole proprietorship, partnership, limited liability company, corporation, or other permitted form. Record each candidate structure on the business-setup checklist.
3. Compare ownership, control, liability, taxation, continuity, administration, payroll, financing, licensing, and recordkeeping considerations with qualified advisors. Record the attorney's or CPA's specific comments for each structure compared.
4. Do not select an entity solely from online summaries or liability marketing claims. Confirm the final selection is supported by the recorded professional comments, not by an unreviewed generic comparison.
5. Confirm whether the proposed structure is permitted for the contractor license or professional relationship involved. Record the licensing authority's confirmation or the attorney's confirmation of this compatibility.
6. Identify owners, percentages, voting rights, managers, officers, directors, qualifiers, and authorized signers. Record each on the ownership and authority record.
7. Document contributions of cash, tools, vehicles, equipment, intellectual property, customer lists, and other assets. Record the contributing owner, the asset, and its value for each contribution.
8. Identify buy-sell, death, disability, departure, dispute, and ownership-transfer issues requiring attorney review. List each issue and the attorney assigned to address it before final registration.

F. Registration and Identification

1. Select the legal name and verify availability through the official registry. Record the search date and result on the business-setup checklist.
2. Check trade name, assumed name, trademark, domain, social-media, and advertising consistency. Record each name's availability status before filing.
3. Register the entity or proprietorship through the official process. Record the filing date, confirmation number, and official contact used.
4. Obtain official formation, registration, charter, partnership, assumed-name, or similar documents. Store the issued documents in the corporate-record book's formation section.
5. Obtain the appropriate taxpayer identification through the official tax process. Record the identification number's issuance date and store the confirmation document.
6. Identify required state, local, payroll, sales-tax, unemployment, and industry registrations with professional guidance. List each required registration and its current status.

G. Company Record System

1. Create the company information sheet with legal name, trade name, addresses, contacts, identification numbers, and authorized persons. Place this sheet at the front of the corporate-record book.
2. Create a signing-authority matrix for contracts, checks, credit, payroll, hiring, purchases, debt, and legal filings. Name the specific authorized person for each category.
3. Create a governance calendar for reports, meetings, minutes, annual filings, registered agent, renewals, and ownership updates. Record each required date and the responsible person.
4. Create a secure physical or digital corporate-record book. Confirm the storage method and its access controls before filing any document.
5. Create sections for formation, governance, ownership, licenses, insurance, bonds, taxes, banking, contracts, employees, subcontractors, vehicles, equipment, property, and legal matters. Label each section and confirm it is empty and ready for later chapters.
6. Create a confidential-record section with restricted access. Name the specific persons permitted access to this section.
7. Create a document-naming, revision, backup, retention, destruction, and release procedure. Write the specific naming convention and backup schedule to be used going forward.
8. Store certified or official copies separately from working copies. Confirm the physical or digital location of each.
9. Create a company seal, resolution, consent, meeting-minute, or authorization system only where advised or required. Record whether this applies to the selected structure.
10. Create an asset register showing ownership, purchase date, serial number, financing, insurance, assignment, and disposition. Record every company-owned tool, vehicle, or equipment item currently known.
11. Create a vehicle and equipment title and registration file. Store titles and registration documents in this file as they are obtained.
12. Create a business-address, mail, registered-agent, and official-notice procedure. Record who receives official notices and how they are routed.
13. Create a record of licenses, accounts, platforms, subscriptions, passwords, and responsible administrators without exposing credentials. Record the account name and responsible administrator only; store credentials in a separate secured system.
14. Create a continuity plan for access if an owner or manager is unavailable. Name the backup authority and the specific access this plan restores.

H. Separation Review, Checklist, and Approval

1. Review whether personal assets, vehicles, tools, or property are being used by the business without written ownership, lease, reimbursement, or insurance treatment. List every item found in this condition.
2. Correct commingling of names, invoices, contracts, bank accounts, or property before operations begin. Record the correction taken for each item listed in the previous step.
3. Prepare the business-setup checklist with completed, pending, not applicable, and professional-review items. Mark every item from Sections E through G with its current status.
4. Review the completed structure and records with the attorney, CPA, licensing authority, broker, and bank as applicable. Record each reviewer's name, role, date, and comments.
5. Obtain required approvals and archive evidence. Store each approval document in the corporate-record book's legal-matters section.
6. Set annual and event-triggered reviews for ownership, authority, address, registered agent, and company records. Record the next scheduled review date and the specific events that would trigger an earlier review.