Form a California Corporation
Incorporating offers several advantages and protects your company’s name. Some of these advantages include:
Should you choose to form a California corporation or form a California Limited Liability Company, your company will be registered with the state of California. No other company will be able to use the name you have chosen.
There are many benefits to setting up a California corporation and the process is not complicated with professional assistance. Go to our FAQ page for answers to basic questions regarding incorporating in California. Read about some of the advantages incorporating has to offer.
An S Corporation (Small Business Corporation) is an election made by a general corporation after its formation to change the way income is taxed through the IRS. This status allows the taxation of the company to be similar to a partnership or sole proprietor as opposed to paying taxes based on a corporate tax structure. The profits and losses of the business pass through to the corporation owner’s personal income tax. Like a Limited Liability Company, the tax “pass through” allows you to avoid “double taxation.”
Deciding what type of business company structure is best for your small business can be a confusing exercise. If you have any questions as to whether you would benefit from an S Corporation election, you should seek advice from your accountant or an attorney.
A People’s Choice can save you hundreds of dollars compared to an expensive attorney!
Most people choose a competent family member or close friend, but depending on the complexity of your finances you might ask your lawyer, business partner, or banker to serve as attorney-in-fact.
If you really know and trust the person, it’s most likely a good option.
Our flat fees cover all document preparation as specifically outlined in our Contract For Services. Our flat fees always include a courtesy allocated amount of communication via email. This allocation should adequately cover most client’s email needs. Our business strategy in offering competitive pricing is based on our volume of document preparation. We understand that clients will have questions, and we want our clients to be informed about their legal process. When approaching us with questions, clients should try to be thoughtful, and consider including multiple questions within each email. We do recognize that some customers have special needs. Therefore, to provide a cost-effective solution for everyone, if a client exceeds the allotted number of emails offered for their particular type of legal proceeding, emails that exceed a client’s allotment will be charged.
Customers can typically expect a swift response, even after hours and on the weekends, although we do not “guarantee” a specific after-hours email response time. This program allows complete customer control over their overall legal fees. In addition, it has allowed us to keep our fees at “rock bottom” prices for those extremely price-conscious consumers; while maintaining flexibility and convenience for those customers who want to pay for that extra service.
This office will perform a non-binding name check for name availability within the state of incorporation. The name check is performed by us at no additional charge where available. Please remember that the final determination is made by the state officials; thus, never rely on a corporate name check until AFTER you have received a copy of your filed Articles of Incorporation, stamped with the state’s approval.
Individuals and unincorporated entities that regularly conduct business using an assumed name (often called a DBA ) must file an assumed name certificate with the county clerk in each county in which business premises are maintained. If corporations, limited liability companies or limited partnerships (entities created by filing with the secretary of state) do business with a name that is different from the name in the organizational documents, they must file assumed name certificates in the county or counties where the registered office and the principal office are located, and must also file with the secretary of state.
Incorporating will not keep another business from using your name. Generally, every business must protect its own business name and the good will that it has acquired from the sale of its goods or services in a specific geographic area. Filing articles of incorporation only prevents the secretary of state from filing a document to create another corporation, limited liability company or limited partnership that has the same, a deceptively similar, or similar name as the entity already in existence.
Yes. The Secretary of State requires that you use one of the above so that your customers know they are dealing with a Corporation. We will check the name that you are requesting to see if it is available. If the name is not available, we will contact you about your alternatives.
Yes. The business address must be within the state in which you are incorporating. If you are using the registered agent’s address, that will be the address for the business place.
While a few jurisdictions require publication of the corporate name to be published in a newspaper local to the county of the registered agent (Georgia, Arizona, Illinois, and Pennsylvania), most jurisdictions do not require publication unless an existing unincorporated business intends to incorporate without a change in its name; that business must then publish its intent to incorporate in the local newspaper for four consecutive weeks (in most jurisdictions). California does not have this requirement.
Processing times for incorporating a company vary and change constantly depending on the workload at the state office. Please ask one of our representatives for our most current approximation of the current processing time for Articles of Incorporation. Non-expedited processing with the California Secretary of State can often take several months. We offer expedited services with a 5-7 day turn around as well as 24 hour processing for an extra fee.
While most jurisdictions allow the same person to act in all capacities, that person has different responsibilities depending on the capacity in which he or she is acting.
Although most jurisdictions allow one person to serve in the three capacities of President, Treasurer and Secretary, the person’s responsibility and authority changes through the different officer positions the person assumes. For example, the president is typically responsible for entering into contracts for the corporation, the treasurer is responsible for maintaining and accounting for corporate funds, and the secretary is responsible for observing corporate formalities and maintaining corporate records.
In addition to these required officer positions, a corporation may also have vice presidents and/or assistant secretaries or assistant treasurers.
Typically, the authority and responsibilities of each officer are described in the corporate bylaws and may be further defined by an employment contract or job description.
The president: The president has the overall executive responsibility for the management of the corporation and is directly responsible for carrying out the orders of the board of directors. He or she is usually elected by the board of directors.
The treasurer: The treasurer is the chief financial officer of the corporation and is responsible for controlling and recording its finances and maintaining corporate bank accounts. Actual fiscal policy of the corporation may rest with the board of directors and be largely controlled by the president on a day-to-day basis.
The secretary: The secretary is typically responsible for maintaining the corporate records.
While jurisdictions will vary in their requirements, most states require that there be at least one director and two officers, in a general, for-profit corporation. The required officers are president and secretary. Most states allow one natural person to hold both offices and be the sole director of the corporation. Usually, that one person may also be the sole shareholder. A corporation may not be a director of another corporation.
A Corporation’s “Articles of Incorporation” is the main filing document which begins the corporation’s existence under state law. Once filed, the corporation comes into existence.
The level of complexity for a corporation’s Articles of Incorporation can range from very simple to extremely complex. Generally, most jurisdictions require Articles of incorporation to contain, at a minimum, information about the corporate name, the registered agent, and the corporation’s business address. Requirements vary by state.
While many jurisdictions have abolished the requirement of maintaining a corporate seal, many corporations still prefer to maintain a corporate seal as a formality. Corporate seals range in price from $8 (rubber stamp) to about $75 (steel embosser). Your can order your corporate seal through our office. You’ll need the name of your corporation and the date of incorporation before you can order it.
If you plan on opening a bank account under your corporate name, most banks will require that your corporation have a Federal Employers’ Identification Number.
A Federal Tax Identification Number (also known as a “95 Number” or “EIN Number” ) is a number assigned to a corporation or LLC by the Federal Government for purposes of taxation. The Federal Tax ID Number is to a corporation or LLC as a Social Security Number is to an individual. Most banks require that a corporation or LLC obtain a Federal Tax Identification Number as a prerequisite to opening a bank account regardless of whether the company will have employees. This office can prepare your Federal Tax Identification Number Application (IRS form SS4) at your request. Once you receive the prepared application from our office, you may contact the IRS with the completed form and obtain the actual “95 Number” over the telephone in just minutes!
Shares of stock represent ownership of the corporation. Where no shares are issued, no individual owns the corporation. Thus, shares must be issued to those individuals who will own the corporation. While most states have created many exceptions and exemptions from registering a stock issuance with the State or with the SEC for most small businesses, it may be wise to contact the appropriate entity to determine whether you must file a notice of stock issuance on a state or federal level.
Because this office is a non-attorney, legal document preparation service, our company CANNOT be involved with your corporation’s stock issuance. We will provide you with a custom stock certificate that you can use to issue the corporate stock. For help regarding your corporation’s stock issuance, please contact a licensed attorney or the appropriate state entity.
A business corporation must sell shares of stock in order to capitalize the corporation, that is, provide the corporation with its own capital, separate from the money of its owners. This separation provides part of the support for shielding the shareholders from personal liability for the debts and obligations of the corporation.
Shares of stock sold by the corporation represent proportionate ownership interests held by shareholders in the corporation. Par value is a dollar value assigned to shares of stock which is the minimum amount for which each share may be sold. There is no minimum or maximum value that must be assigned. Shares may also have no par value, which means that the board of directors will assign a value to the stock below which the shares cannot be issued.
There is no minimum number of shares that must be authorized in the articles of incorporation. One or more shares may be authorized. However, the corporation may not sell more shares than it is authorized to issue and it must receive consideration in exchange for its shares.
There is no national registration of trade names. Generally, businesses, including corporations, protect their trade names by registering their trade name as a service mark or trademark, if the trade name also functions as a service mark or trademark. Because of the legal complexities involved, we recommend that businesses obtain private counsel to get advice on how to protect a trade name in interstate commerce.
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A People’s Choice can save you hundreds of dollars by preparing your documents instead of an expensive attorney!
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