How to incorporate in California.

There are several reasons why an entrepreneur would want to incorporate in California. On top of those reasons is of course the fact that you have already studied your market and the feasibility of your business.

If you are into any kind of business then you should put some legitimacy to your business by choosing the business structure appropriate for your venture, be it a single proprietorship, partnership or a corporation.

So the next question would be how to incorporate in California? Here are some tips to guide you through:

1. Get the services of a lawyer who will be more knowledgeable about all things required for business who decide to incorporate in California. Of course, getting the services of a lawyer is not mandatory but having one on your side will make the process smoother and more efficient.

2. Decide on the corporation bylaws. This is the bible of the corporation and will determine the rules and regulations of the business. Also choose a corporation name and identify the board of directors or board of trustees of your corporation depending on whether it is a profit or non profit corporation.

3. If you decide to incorporate in California then you might want to consider getting a catchy and unique name for your corporation. Remember that there are lot so corporation in California and you do not want to have the problem of having exactly the same name as these corporations later on.

4. While other areas specify a certain ending to the name of the corporation, California laws does not require corporations to have a particular name ending. However, you have to make sure that the name you selected abides by specific the California laws.

5. At least one incorporator is required. This is a requirement if you want to incorporate in California. Register your articles of incorporation and do not forget to specify the par value, classes and the number of specific shares.

6. You must appoint a corporation agent, either an individual or a corporation that has been registered in the state. Prepare a $115 processing fee for you to incorporate in California.

7. Once you have filed your articles of incorporation you can expect a 15-day processing period if approved. You must remember that as a corporation incorporated in California you have responsibilities including but not limited to the filing of reports annually as to the status of the business as well as details about its officers and directors.

8. Never evade taxes in California because you may have to suffer stiff penalties and sanctions. However there are legal ways of skipping these taxes and these are called tax avoidance strategies. These strategies are generally not illegal but are even recognised by the state if you only know how to use them to your advantage.

9. Before you incorporate in California you have to know that all corporations that are doing or conducting their business in California will have to pay a franchise tax.

10. Once approved, every corporation must follow the incorporation laws of California as regards insider trading and other trading manipulation issues to avoid being sanctioned or even penalised later on.