How to Incorporate a Business in California
If you want to incorporate the business, you should first know the procedures in your state or county. In California, the process is not complicated.
Just follow the steps below and in no time, you can incorporate the business.
If you’re from California, it’s really quite easy to incorporate a business. Corporations are of different legal entities. The legal status of the business is separate from that of the owners. The people are protected in the case of debts or incurred liabilities of the business. You have to visit the concerned office in California or you can also visit their portal. This will allow you to obtain the needed forms for incorporation. You can also call the office of Secretary of State at (916) 657-5448.
Incorporating the Business
Choosing the name of the corporation is very important. You will not be allowed to use an existing name, so you need to take time in checking the name you want to use. You can send a document with the Sacramento office. You must prepare a Name Availability Inquiry letter. Be informed that there is a fee when you check a name’s availability. You’re in luck if the name is unique and available for use. After this, you can now work on the Articles of Incorporation. This is can be complex so it’s best if you seek legal help. There are lawyers with experience in creating this document. Find one and hire his or her services.
The Articles of Incorporation will cover the company’s name, officers’ names, and other vital info. The process can take several weeks so if you have a planned date to open the business, you must accomplish this in advance. The paperwork can take time and it will usually depend with the agency or office. After completing this aspect, you can now secure your Employer Identification Number. This is very important when you open a business especially for tax purposes. For those with adequate experience in the business industry, you might be able to do these things without seeking legal help from lawyers.
Perhaps you’ve already seen online services that advertise business incorporation in California. You need to be extra careful when working with these websites. Make sure that you read the policies or terms and try to find out if there are any additional fees. When you incorporate a business, the personal assets of the business owners are protected. Shareholders have their responsibilities to comply with and this will determine the extent of liability of each one. You’re lucky to live in California because the procedures in incorporation are not that hard. Now, all you have to do is decide if you want to hire a lawyer or not in incorporating the business.
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