Establishing Corporation
Many business owners often decide to transform their businesses into corporations because of the advantages of the corporation set-up. A corporation has the following advantages:
- Protection from liability – A corporation is a separate entity from its owner, therefore any debts or liability incurred by the company, excludes the owner from it.
- Tax benefits – Corporations have lower tax rates and have better taxable benefits
- Raise funds easily – A corporation can increase its funds easily compared to sole proprietorship or partnership business as it can sell shares
- Better Selling capability – A corporation is easier to sell than a non-corporate business because its value is based on the business, not the owner.
Though easy as it may seem, starting a corporation may involve several issues, among them:
- A corporate name and address with no potential trademark problem
- Selecting a corporation type suited to your business and needs
- Determining your company directors and filing of articles of incorporation and by-laws
- The type of shares to be issued
- Processing and filing of incorporation documents
The California Corporations Code contains all provisions that governs corporation establishment. The code also serves as a guideline to those who plan to set up a business such as information on basic requirements of the law, procedures and other related concerns.
When planning to establish a corporation, it is essential to consult with a lawyer who is knowledgeable in the field with experience in the preparation, design, and drafting of vital documents as well as in the formation of business structures.
Let Business Corporate Attorneys help you with your concerns regarding corporation establishment. Call us at our toll-free number and avail of our free case consultation.