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How to Incorporate in California

By Scott Letourneau
Sep 11, 2009
The basic rules of incorporation are the same whether you are in Alaska or Oklahoma. There are some sanctions that vary from state to state. This article will teach you how to incorporate in California.

First you need to hire a professional company to help you figure out which forms and articles that you need to fill out. The following is a list of the forms in California:

Articles of Incorporation: California Corporation
Articles of Incorporation: California Professional Corporation
Articles of Incorporation: California Close Corporation
Articles of Organization: California Limited Liability Company
Articles of Registration: California Limited Liability Partnership
Articles of Certification: California Limited Partnership.

It is not necessary to file an initial list of directors with the State of California. If you do decide to file a list of directors, however, every person on that list must sign and acknowledge all of the articles of incorporation for the company.

After filling out the articles of incorporation and having them signed by everyone on your directors list (if you have a list of your directors) you need to file the articles. The State of California requires that every new business filing for incorporation must include an agent for the service of process. Your lawyer or the company that you hired to help you incorporate your business should either provide that for you or help you find one that is reliable.

Once you have completed the paperwork you will need to get your stock shares ready for purchase. If you are only issuing one class of stock shares, you must list the number of shares that you will be selling initially in your articles of incorporation.

There are a number of benefits to becoming a corporation in California. The state of California offers a corporation protection from the owner's personal liability for business debts that were incurred before incorporation took place. The company is protected as a business even if the founder and/or owner passes away while the business is still operating and the C Corporations are allowed un unlimited number of shareholders and these share holders do not have to be US citizens or even permanent residents of the company.

That having been said, it is important that you make sure that you are qualified to incorporate your business in California. If you have not actually done business within the state borders you could be facing stiff penalties and fees. State officials are cracking down on out of state incorporators so, before you begin filing to incorporate in California, you need to get together all the proof you have that you have conducted business within the state.

As already mentioned, the process of incorporating is basically the same in California as it is in anywhere else in the United States. The best way to make sure the incorporation process goes smoothly is to follow the letter of the law and hire someone well versed in incorporation to help you fill out and file your paperwork.
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