Have you have determined that you would like to incorporate your company in California and form a company? Then congratulations! This corporate structure will afford you many advantages in the state of California, along with some California tax advantages and various legal protections that you would not otherwise have. Each state has varying terms regarding the formation of a company, and like them, Califonia has its own procedures as well.
No matter if you are incorporating a brand new business, are a small business turning into a corporation, or a worldwide corporation growing in the United States, the skilled corporate attorneys at Leiva Law Firm are able to help. Reach out to our skilled business attorneys to schedule your free, preliminary overview discussion.
Examples of Business Entities
There are many kinds of corporate entities in the state of California. From a general stock corporation to a sole proprietorship, you need to select the entity that works for you. After you decide to build a corporation in California, you have to determine which kind of corporation is the best fit for your business. California accepts the kinds of corporations listed below:
- General or Closed Stock Corporations (C-Corporation) – These are the most common kind of business entity. Big corporations with an excess of 100 total shareholders usually opt to create a general stock corporation, which can be either not for profit or for profit
- S-Corporation – These businesses are not required to pay any federal income taxes, but they have to have fewer than 100 total shareholders. Shareholders possess limited liability when they are involved with an S-Corporation, and benefit from various tax incentives
- Nonprofit Religious Corporation – These businesses are also exempt from paying any federal income taxes but they do have to apply for federal non-profit standing. These businesses also have to be classified as a church or for some other completely religious function
- Nonprofit Public Benefit Corporation (Charities) – Organizations that are NOT religious in nature but do have a charitable mission that are also looking for an exemption from federal tax laws may file as a non-profit public benefit corporation
- Nonprofit Mutual Benefit Corporation – This is another very common sort of business entity that works for both not-for-profit and for-profit goals. Companies that are planning on donating at least twenty percent of all of their profits to charities, for instance, can choose the status of a mutual benefit corporation
Limited Liability Companies (LLCs) do not qualify as incorporated businesses in the state of California, so if you are a licensed professional or a small business owner, for instance, a doctor, architect, or an accountant, then you will need to meet with one of our reputable attorneys to figure out the business entity that will work for you. There are usually supplementary specifications for these kinds of professionals that are looking to build a corporation.
If you want to ensure that your business is structured so that you get the most benefit, then we strongly urge that your new company solicits the advice of a qualified California business attorney before you start to file your articles of incorporation. To set up a meeting, please get in touch with the Leiva Law Firm by calling 818-519-4465. We can help you examine your legal rights in Spanish or in English.