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Incorporate in California

California economy is one of the strongest in the country with health, education, and business services sectors being the most enterprising in recent times. New business incorporation in California has been taking place quite rapidly with Los Angeles County being quite the favorite for small and medium enterprises (SMEs).

Whether it is favorable business climate or privacy that you seek, the state of California offers lucrative business opportunities. This is probably the reason why the state is considered as one of the fastest for spawning new businesses. According to the U.S. Census Bureau, Beacon, business creation rate in California is a good 11.4% as compared to the rest of the U.S, which is at 10.1%.

Why Choose California for Incorporation?

There are several reasons why there has been a rise in company incorporation in California and one of the prime reasons is the advantages that businesses enjoy. Some of the advantages include:

Asset Protection

Incorporation in California will provide protection to Directors and officers of an organization from personal liability against any business debts or even lawsuits that may arise during the operational phase of your corporation. Such a situation could also arise due to the actions committed on behalf of your corporation.

Note: The extent of personal liability exposure will be limited to the amount of initial capital investment.

Flexibility in Management

When you set up company in California, your corporation will require only 3 positions to start with and they are: president, secretary, and chief financial officer (CFO). The above mentioned positions can be filled by a single individual. If your California Corporation consists of 2 shareholders then there has to be a minimum of 2 board members.

Tax in California

Corporations in California are taxed at only 9% and other tax benefits are available depending on specific types of corporation being formed.

Flexibility in Stock

One of the remarkable advantages of company incorporation in California is that corporations can sell, gift, transfer, or even purchase shares of their own corporate stock. A California Corporation can also issue stock for property, cash, and other services. Directors have the flexibility of determining the value or net worth of stock, and this stock can exist in a quantifiable form like capital value, property, and liquid funds among others.

Credibility

Company incorporation in California will help in increasing the overall “credibility” of your business, which will further develop investor interest in your organization.

How do you incorporate in California?

If you are planning to set up company in California then you will be required to follow certain procedures that will aid in the formation of your Corporation or LLC. We at incparadise.net have specialists on our team who can guide you towards setting up or forming LLC, California C Corporation, and California S Corporation in the shortest possible period.

Here is a step by step procedure towards incorporation in California:

Type of Business

You need to identify the type of business you want to start with. You can choose from a general stock corporation to a non-profit mutual benefit corporation, close corporation, LLC, limited partnership (LP), general partnership (GP), or limited liability partnerships (LLP).

Business Name

The second step is to identify a name for your business along with the required suffix, which will indicate the type of business entity you have formed. If you opt for company incorporation in California then it is essential to check a corporate name and reserve it with Secretary of State prior to filing your Articles of Incorporation. You can find detailed information on checking names here.

Note: It is important to check because if the chosen name is not available after the submission of the Articles of Incorporation then your incorporation documents will be rejected.

Registered Agent

You will need to name a registered agent as the agent will be responsible for initiating the processing of your Articles of Incorporation. As a California registered agent like incparadise.net, we can also receive any and all legal and business related paperwork on your behalf.

Articles of incorporation

You will need to file articles of incorporation, which we can always file on your behalf through the standard process or online or through expedited process.

Date Stamped Copies

As a part of the process of company incorporation in California, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with California Incorporation

What would it cost to set up company in California? Is it expensive? Is it time consuming and exhaustive? All that we can say is that “You are in good hands!”
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