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How to File a Corporation
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Posted On :
Apr-29-2011
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Article Word Count :
518
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Whether you are considering creating a new business or already in the process of operating your business as a sole proprietorship or general partnership, forming a California corporation will have many benefits.
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Whether you are considering creating a new business or already in the process of operating your business as a sole proprietorship or general partnership, forming a California corporation will have many benefits. By forming a corporation, you will be securing your assets as well as gaining tax breaks. The owners of corporations enjoy the protection that limited liability offers. Creditors will not be able to pursue your assets to pay business debts. Corporations also have tax advantages that include the ability to write off health insurance premiums and saving on self-employment taxes.
Benefits of Forming a Corporation in California
Filing as a corporation in California allows the business to appear as a separate and distinct entity from the shareholders of the company. The shareholders of a California corporation have limited liability for the company’s liabilities and debt obligations. The corporation also has the choice to pass their future share of the business losses or profits to their individual tax return. The first step, prior to filing the articles of incorporation, is to select a business name for the corporation. The law in California indicates that the name of a corporation must use a name that is distinguishable from any other business name in California. According to California law, three individuals must be selected to serve as directors for the corporation. If the corporation has less than three shareholders, the company can choose to have the same number of directors as there are shareholders of the company.
The Articles of Incorporation
The articles of incorporation for California must be filed at the office of the California Secretary of State. The State of California provides free sample articles of incorporation on the secretary of state’s official website. The articles of incorporation must include the name and address of the corporation, as well as the contact information for the registered agent. The registered agent is responsible of accepting the legal process on behalf of the corporation and must either be a business or a person over the age of 18 with a physical address in California and must accompany a filing fee of $100.
The Creation of Bylaws and Obtaining an EIN
Every corporation of California must have written bylaws that are to be kept on the premises of the business for reference purposes. The bylaws should include provisions such as the election of the board members, meeting details and the voting rights shared by the shareholders. Once the bylaws are complete, a statement of information must be filed within 90 days of the corporation formation. A filing fee of $25 must also accompany the statement. Every corporation must have an employer identification number which can be obtained from the Internal Revenue Service. The EIN may be obtained online or over the phone. Lastly, all licenses and permits related to the business must be obtained. The process of filing for incorporation in California can be a complicated process. It is best to work with a company that has the experience and expertise with articles of incorporation California and all other aspects of the incorporation process.
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Article Source :
http://www.articleseen.com/Article_How to File a Corporation_60841.aspx
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Author Resource :
File your California Corporation's articles of incorporation in California. They are located in Sacramento, CA and make three trips daily to the SOS office. More information about articles of incorporation available in the site.
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Keywords :
articles of incorporation, articles of incorporation California,
Category :
Business
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Business
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