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CORPORATE NAMESA new corporation cannot use the name of an existingcorporation, either foreign or domestic, or a name sosimilar to an existing name that people would beconfused by the similarity. Why are corporate namesconsidered to be so important?Some states have additional requirements, such as a minimumamount of capital on hand, often between $500 and $1,000, or a minimumnumber of incorporators.Paying the filing fee completes the application. See Figure 28.4 fora list of the steps in the incorporation process. After the application isapproved by the secretary of state, the corporation receives a certificateof incorporation. A certificate of incorporation is a corporation’sofficial authorization to do business in the state. In some states, the certificateof incorporation is called a charter.Structure of the Corporation The initial shareholders of the newlyformed corporation elect a board of directors who replace the originalincorporators. Frequently, the original incorporators serve on the board.612 Unit 6: Starting a Business