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California Corporation:

Creating a California Corporation can be an effortless undertaking, if you know what you are doing. Incorporating a business does not take long at all. Frequently many forms you need for incorporation can be found on a government website for the state.

Corporations that are domestic will need to file with the Secretary of State within 90 days of becoming incorporated. There are some annual statements that must be filed each year such as tax information. California has a minimum on taxes that must be paid in the state. This amount can change but is currently $800 annually.

California also requires you to have a business license and pay this licensing fee on whichever business or profession you have. California incorporation can be done easily if done well; it is important to consult with a professional when you decide to incorporate your business.

It is advisable to that you make fundamental determinations as to the form of incorporation that best suits your business requirements. You can designate doing business as a C corporation, which permits the business to operate as a legal entity separate and apart from its underlying owners in terms of corporate liability unless in cases of director's fraud. If you hire a California business incorporation lawyer they will create the necessary documents allowing management to issue shares in order to delineate ownership as well as issue shares in order to raise or expand the firm's capital.

A state California incorporation also permits local entrepreneurs to select an alternative form of incorporation such as the Subchapter S corporation which does not pay corporate income tax, thus avoiding the "double taxation" issue common to mainstream C corporations. As a derivative form of incorporation like the C Corporation, your California incorporation also permits an S corporation to makes a separate filing of IRS form 2553 as an election for special tax status.

Creating a corporation does many things for the company’s owner. Creating a separate entity out of your business limits your liability and the liability of any additional owners or stockholders. If the company were to find itself in financial distress, then any liabilities the company might have won't necessarily be passed on to its owners. Corporations may not apply if the owners individually obligate themselves for the company, as in signing a contract to lease office equipment or a warehouse. In addition a company may not apply if the only purpose is to act as an "alter ego" to its shareholders.

You can convert an already existing business into a corporate company and it is also possible to start your business as a corporation. The most important part of forming a corporation is to file Articles of Organization .

The filing process can be done in a few different ways. It can be more costly if you hire a lawyer or with far less money if you enlist the help of a service specializing in helping businesses become a corporation. Often you will want to draw up corporate bylaws; these define how the company is to be run, i.e. how business decisions will be made, how managers will be hired and fired and how profits will be distributed. Drawing up corporate bylaws not only helps with organization but it can make it more professional and provide legal protection for the company.

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