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CALIFORNIA CORPORATION
A People’s Choice can save you hundreds of dollars by preparing all necessary corporate formation documents instead of an expensive attorney!
Business Learning Center
Our online learning center provides quick access to valuable information contained in our web
site, California and Federal Codes, Court web sites and other legal sources of information.
Incorporating offers several advantages and protects your company's name. Should you choose to incorporate or form a
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. Go to our Commonly Asked Questions and Answer Section for answers to basic questions regarding incorporating in California. Read about some of the advantages incorporating has to offer.
A People’s Choice can prepare all necessary documents
you will require to establish your corporation.
Call us today to get your business started now!
If you have decided to create a corporation for your business, there are several tasks that you must do:
- Choose an available business name. Note that California statute sets forth specific requirements regarding
acceptable (and unacceptable) names for Corporations and LLCs. If you have any questions or concerns
regarding the acceptability of your chosen name, please refer to California statutes. Some of the restrictions
involve the use of the words “cooperative”, "bank”, "trust", "trustee", "insurer" or "insurance company". Before
selecting the name for your corporation, you may want to refer to the following statutes. These statutes may not be all-inclusive of the laws pertaining to your particular situation.
Quick Link to Corporations Code
- Appoint the initial directors of your corporation. California permits the corporation to have just one director.
- File your Articles of Incorporation with the California Secretary of State and pay the filing fee ($100).
- Create corporate "bylaws," which are the written operating rules for your corporation. Typically, the bylaws are adopted by the corporation's directors at their first board meeting.
- Hold the first meeting of the board of directors.
- Issue stock certificates to the initial owners (shareholders) of the corporation. Issuing shares formally divides up
ownership interests in the business and is a requirement of doing business as a corporation.
- Obtain any licenses and permits that are required for your business. This would include, but may not be limited to,
obtaining a business license, an employer identification number from the IRS and a seller's permit.
S Corporation Election:
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 by preparing all
necessary corporate formation documents instead of an expensive attorney!
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