Even the biggest, multinational corporations like Amazon or Apple had to start somewhere. In fact, most successful businesses come from humble beginnings, such as a small, one-person operation in a garage or home office. If you have big entrepreneurial ambitions, it all starts with an idea and a bit of planning. First, you will want to design a comprehensive business plan that identifies the product or service that you plan to offer, as well as an idea of who your customers or clients are. Next, you will want to secure a small business loan so that you can have the capital necessary to get up and running. This means leasing office space, hiring employees, or building a dynamic digital presence. Additionally, you are going to want to think a bit about landing on a legal structure for your business. For many, a limited liability company (LLC) is a logical choice, while others will opt for a partnership. In some cases, however, it makes sense to incorporate your business, in which case you will want to complete CA corporation forms.
California is home to the largest economy in the United States. Beyond that, if California were its own country, it would actually be the fifth-largest economy in the entire world. If you zoom out, that staggering statistic has some context–California is a massive state with major hubs of commerce in tech, entertainment, importing/exporting, and more. Whether you are importing goods in San Pedro or launching the next tech giant in Silicon Valley, California can be a hospitable environment for driven entrepreneurs. By processing your CA corporation forms, you can position your company to grow and succeed within the friendly confines of the Golden State.
Why You Should Consider CA Corporation Forms
Deciding on a legal structure for your business should be a decision that is arrived at with care. You are going to want to take a thorough inventory of your goals and needs as a business owner. If, for example, low tax liability and legal protection are important to you, you may want to look closely at forming an LLC. An LLC is relatively easy to create and does not require much in terms of maintenance. If you are a licensed professional such as a doctor, lawyer, or accountant in the state of California, you will need to form a limited liability partnership (LLP). If you are looking to expand your business rapidly, however, drafting articles of incorporation may be your most reasonable bet.
One reason that businesses will choose to incorporate is that it allows them the ability to issue stock. A share of stock represents a fractional piece of ownership in an organization, which allows an outside investor the opportunity to share in your success. In return, your business gets a cash injection that affords you the chance to put money back into your organization.
How to Incorporate a Business in California
If you have done the necessary research and have determined that a corporation is right for you, there will be a process to follow with the California Secretary of State. First, you will need to decide on a name for your corporation that is distinct from any other incorporated business in the state. You can submit a request to the Secretary of State’s office in Sacramento to check on the availability of your desired corporate name. From there, you will want to appoint a registered agent. The role of this person is to receive all legal, tax, and government correspondence for your business. Many corporations opt to fill this position with in-house legal counsel, though that is not required by state law.
With those items decided upon, you can move ahead with completing Articles of Incorporation – General Stock (Form ARTS-GS) with the state of California. This document should include some basic information about your business, such as its name and address, as well as those of the incorporators. You will also want to include information on your registered agent and list how many shares you plan to issue. Once completed, you can submit this form to the Secretary of State’s office for processing.
With your paperwork completed, you may want to draft corporate bylaws. Though not required by law, bylaws can help you manage your business on a day-to-day level. This rubric of rules can clarify your meeting schedule, management duties, and fiscal year. This is also a good occasion to hold your first meeting with your board of directors. You can use this meeting to establish a cadence for future sessions and make any changes to your lineup of directors.
Get Your Forms Online!
At Corporation Center, we can help you process your CA corporation forms online. By using our streamlined, fillable web form, you can submit your Form ARTS-GS via our SSL-encrypted web portal with just a few clicks. If you have any questions or if you would like to learn more, please contact one of our friendly customer service agents by phone or email.