Deciding to incorporate your new business venture is a decision that offers several benefits. It is necessary to decide what kind of a legal structure you are opting for and take further action. It is advisable to hire an attorney to guide you through the process of incorporation or opt for a firm that will take care of incorporation details as well as forming bylaws and procuring the EIN, such as legalzoom.com or mycorporation.com for a reasonable fee .
Incorporation in California:
Once you have decided on the kind of entity, you are going to form the nature of the business, have a good business plan as well as have adequate resources to fund the operation. It is essential to determine an appropriate name for your corporation. The name has to be unique and not a copy of any other registered business and must not be misleading, it can be reserved by paying a nominal fee and on being registered, can be trademark protected. It is not necessary for corporations to have any specific endings in California, except if it is a statory close corporation. Make sure the name selected is in compliance with applicable state laws.
The articles of incorporation have to be filed with the Secretary Of State of California. There has to be at least a minimum of one incorporator. It is not necessary to list the names of the incorporators with the articles, but it must contain a statement of purpose, the par value of the shares, the classes of share and the number of shares in each class. Also, the name and address of the corporation's initial agent for service of process in California has to be included. The registered agent must either be a natural person staying in the state or a corporation that has been approved to serve as a registered agent in the state. The state charges a fee of $ 115 and if expedited, the processing time is 15 days usually.
The bylaws have to be formed carefully, and they have to be maintained in the executive executive office of the business and have to be available to be viewed by relatives if desired during working hours. The must be a minimum of 3 directors, and the bylaws may provide the qualification necessary for becoming a director. The bylaws also provide the number of officers and the duties assigned to them. Usually the president or the chairman of the board is the chief executive officer of the California Corporation. The same person may hold any number of offices unless stated otherwise in the articles or the bylaws. An initial statement of the officers appointed must be filed with the California Secretary of State within 90 days after filing original articles. The corporation has to file annual reports including details of directors, officers and nature of business etc. The income tax rate is 8.84% of net income.
These are some tips for incorporating in California.
There are firms that offer their services to businesses that have just started to help them run more efficiently.