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How To Form A Corporation In California

Forming a corporation in California is important to protect your personal assets from any business liabilities or debts. If your California limited liability corporation is properly formed and managed, it can give you the peace of mind that your personal savings, home or car are safe from being used for any of your business obligations. Forming a C Corporation will also guarantee the continuance of the business if you pass away or leave it. There is no limit of the number of shareholders you can have, and they do not need to be U.S. citizens or permanent residents.
Start by Choosing a Name for your Corporation
The first thing you need to do to form a California corporation is choose a name for your business and then find out if that name is available. A trademark is a logo or slogan that identifies a business. The name can also be a trademark. Your name should be unique and not be confused with another company. You can check the federal trademark database for free at the U.S. Patent and Trademark Office to see if your name is available. You can also do an internet search or search the business names at your local ...
... county clerk’s office and the California database of business names.
Prepare and File Legal Documents with the California Secretary of State
California law requires that you must prepare articles of incorporation and the corporation’s bylaws. One of them must state the number of directors the corporation will have. The articles of incorporation are like the constitution of the business and can be short. The state provides forms for creating this online, and they must be filed with the state for a fee. A statement of information needs to be filed within 90 days of the articles of incorporation and there is also a small fee for filing. A simple online form is available for this. The bylaws need not be filed. They outline the rules and procedures for how the corporation will be governed and operate.
Preliminaries to Running the California Corporation
You should have an organizational meeting, issue stock certificates to the first owners of the corporation and find out if there are regulatory obligations such as taxes. You should get an employer Identification Number from the IRS. This can also be done online. Open a bank account in the name of your business, so it is not connected with your personal finances.
Visit http://www.sundocumentfilings.com For more information about form a California corporation and California limited liability corporation
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