If you are a California resident, you probably know that the Golden State is a major hub of commerce not just in the United States, but at a worldwide level. In fact, if you were to designate California as its own country, it would be the fifth-biggest economy in the entire world. From the ever-expanding tech sector in Silicon Valley to the bright lights of showbiz in Hollywood, California is home to these and several other massive industries. Add those factors to the near-perfect weather and booming population, and it is really no wonder why so many businesses choose to set up shop in California. If you are thinking about joining the west coast entrepreneurial class, you may want to think a bit about how you will structure your business. If incorporation is the right move for you, we can help you with our CA corporation online forms.
When you create a corporation, you position your organization for growth with a solid foundation. Setting up a corporation means establishing your business as its own legal entity, one that can buy and sell property, borrow or lend money, pay taxes, and hire employees. A corporation also has the sought-after ability to issue stock. This means that as an incorporator you can sell fractional shares of ownership in your business to investors, which can help you raise the capital necessary to grow your business. Of course, there are other ways to structure a business in California, and some may choose to form a limited liability company (LLC) or limited liability partnership (LLP). If, after you perform the necessary research, you find that a corporation best suits you, there is a process to follow with the California Secretary of State’s office.
How to Complete CA Corporation Forms
Corporations do have to adhere to stricter rules and regulations than other business structures, and you will also face more stringent reporting requirements. Still, beyond being able to sell a stock, there are other perks to having a corporation as well. For instance, some corporate setups will receive a “pass-through” designation from the Internal Revenue Service (IRS). This means that your corporation can pass the gains and losses it generates to its incorporators for tax purposes. You may also be able to cover your personal assets with limited liability protection in the event that your business is sued or must file for bankruptcy.
To start your California corporation, you will first need to choose a corporate name that has not already been registered in the state. You will also want to appoint a registered agent to receive all legal services of process on behalf of your business. With those items checked off your list, you can then move forward with completing your Articles of Incorporation of a General Stock Corporation (Form ARTS-GS). This document should have some relevant details about your business, its incorporators, and registered agent, and you should also note the number of shares you plan to issue.
Start Your Golden State Corporation Today
We can help you get your business up and running. To fill out your Form ARTS-GS online, select the California option from our navigation menu. If you are curious about some of the additional services we provide, visit our helpful Frequently Asked Questions page today.