Taking A Company Public

Taking a company public can be a risky yet very rewarding move. There are many business elements to analyze before you decide to take your company public. One must pay attention to corporate procedures, especially those regarding incorporation. The corporate structure in place for your company is one of the determining factors regarding the success of "going public."

If your company is going public, it must be set up to support and include stockholders. Forming a C-Corporation (of General Corporation) enables a company to make its stock available to interested buyers. This type of corporation sets up a three-pronged corporate structure. The three groups that have influence over the company are the stockholders, the directors and the officers. Each has a key role to play. Voting stockholders shape the Board of Directors, who oversee the company. Officers are responsible for enabling the company to function on a day-to-day basis.

The business environment of Delaware brings many corporations into the state for incorporation (though companies do not have to have a physical presence of any sort in the state). There are more NYSE companies incorporated in Delaware than in all other states combined. Low taxes and a "friendly" legal system make incorporating in Delaware a must for many businesses.

Taking a Company Public in Delaware

The process of taking a company public can be expedited when one decides to incorporate in Delaware. The process of incorporating in the state is very easy, thanks in part to the fact that so many companies have already been through incorporation in the state. The business and legal communities are geared towards business operations in the First State.