How to Incorporate in California

Information about Article of Incorporation California

 

New Article of Incorporation California   Questions

How do get an Article of Incorporation in California? 

Articles of Incorporation in California are a Certificate that can be obtained with Incorporation in California  through our Office.  A Corporation  OR LLC  filing is recommended to reduce taxes, obtain corporate credit, protect assets, and eliminate personal legal, civil and financial liability. 
 

Is my Article of Incorporation California Available Online? 

Yes, Article of Incorporation California is available online.  Click Here to fill out on online form and we will prepare and file your articles.

 

What forms do S corporations file?

• To elect or terminate S Article of Incorporation California   status, form FTB 3560, S Corporation Election or Termination/Revocation
• To report franchise or income tax, Form 100S, California S Corporation Franchise or Income Tax Return
• To report shareholder's share of income and deductions, Form 100S, Schedule K-1
• To report list of shareholders, form FTB 3830, S Corporation's List of Shareholders and Consents

How do I get tax-exempt status?

You must file an  Exemption Application, and receive exempt status notification from the State Tax Board. 
All Article of Incorporation California  s and unincorporated even if organized on a nonprofit basis, are subject to California income tax. A grant of federal exemption does not automatically exempt you from California tax. FTB 3500 should be submitted 90 days prior to the date your exempt status is needed.  

I have exempt status. Do I need to file California Form 100 or Form 109 in addition to Form 199? 
Every California organization exempt must file Form 109 if the gross income from an unrelated trade or business exceeds $1,000.

My Article of Incorporation California   is not doing business; does it have to pay the minimum franchise tax? 
Yes, if your corporation is incorporated in or is qualified to do business in California, it must file a return and pay the minimum tax.

How do I dissolve my corporation? 
File dissolution documents with the Secretary of State.

Also obtain a Tax Clearance Certificate by filing form FTB 3555, Request for Tax Clearance Certificate-Corporation.   FTB 1149 Explains the entire dissolution process and includes the required filing documents.  
 

 

 reduce the chances for personal liability

•  Article of Incorporation California    OR  LLC - AllBusinesses that want to obtain

  • California Corporate business credit,

  • Reduce personal and California business taxes, and

  • Protect themselves from legal and financial liability,

  • Should file a Article of Incorporation California   orLLC  

    • A Article of Incorporation California   or LLC is the ultimate business entity to form for personal and business asset protection.  

    • State law allows you to create a separate corporate legal entity under which you can transact business, without the risk of exposing your assets to any personal liability that might arise out of your business

      • Note: Also need to  comply with the other license requirements above.

The most common options of a business structure are a sole proprietorship, a partnership, or a corporation / LLC. You may lean toward the corporate route because you like the sound of having "Inc." after the company's name, but there are some more practical, business-like considerations to take into account.

More so than with some of the other structures for a business, starting a corporation means complying with formalities required by state laws. Once the shareholders (owners) of the business agree on some basic matters, such items are embodied in articles of incorporation that must be filed with the appropriate state agency. These essentials usually include:

* a corporate name;

* the number of shares that can be issued;

* the number of shares each owner will buy and for what contribution of cash or property;

* the nature of the corporation's business; and

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* the identity of the directors and officers of the corporation who will handle day-to-day operations.

The fledgling corporation will also need bylaws, which constitute a procedural rule book for the company.

Decision making
The bottom line here is that whoever holds a majority of the shares of a corporation has ultimate control over it. Usually it takes a majority of the shares to elect the board of directors, which is charged with making the "big picture" decisions. If a decision is momentous enough for the company's future, such as a change in the articles of incorporation or whether or not to merge with another company, the shareholders usually have a more direct role in that they themselves must approve the decision by a certain margin of votes.

The board elects the officers of the corporation, typically including a president, vice-president, secretary, and treasurer. The officers may or may not be salaried employees or shareholders, and in some cases one person may hold more than one office.

Accountability
At or near the top of the list of characteristics favoring the corporate structure is the fact that, since the corporation is treated as a legal "person" separate from the people who own and run it, the shareholders as a rule are not personally liable for the corporation's debts. Instead, their risk is confined to their investment in the company. To every rule there is an exception, however, and here the exception has the colorful legal name of "piercing the corporate veil." If the owners do not comply with the statutory requirements for running a corporation, or if they blur the lines too much between corporate and personal finances, the legal fiction of the corporation as a separate entity is ignored and the owners are on the hook for the corporation's losses.

Transitions
As a separate entity in the eyes of the law, a corporation does not go out of existence if one or more of its owners dies. Instead, a corporation stays alive until its owners decide otherwise. Transfer of the ownership of the corporation is accomplished by selling its stock. New owners are added either when existing owners sell some of their stock or the corporation itself sells more shares of stock. The smaller the enterprise, the more likely it is that the owners, for whom the corporation may be both their property and their employer, may agree to restrict the sale of the stock in order to maintain control.

The particular circumstances of each new business and the differences in the governing laws of the states make generalities difficult. That said, the factors on the debit side of the ledger for corporations include the costs of setting up the corporate entity, the need for a separate tax return, and the burden of "double taxation." Double taxation means that the corporation is taxed on its profits, and the shareholders are then taxed on their dividends. On the credit side are limited liability for the owners and easy transfer of ownership.

Making the appropriate choice for a business form is one of the first, and one of the most important, decisions a new business will make. Whether choosing a corporate structure or some other form, make sure to consult with a qualified attorney.