A Guide to California Corporations

In order to form a corporation in California, the firston the corporation as well as on the shareholders.
step is to reserve a corporate name. The articles ofArticles of incorporation drafted for a profit corporation
incorporation are drafted and submitted to theinclude all required provisions such as a statement of
California Secretary of State, Corporate Division. Afterthe name and the California address of the service
the articles of incorporation have been submitted, theprovider. It may also include the names and addresses
first meeting of directors and stock issuance will beof the initial directors.
held. The basic formation of a California corporation isCalifornia nonprofit corporations comprise religious,
thus complete. The following points constitute a guidecharitable, social, educational, social and recreational
to California corporations.organizations. They come under the non profit
There are 3 basic ways to submit a form forcorporation law. The article of incorporation must be
incorporating in California. They are filing the papersigned by an incorporator or by the directors of the
work yourself, hiring an attorney to do it, or using anorganization. The original and at least two copies of
incorporation service for the purpose. Unfortunately,the incorporation, together with the applicable fee, must
most people are not aware of state processes, sobe mailed to the Office of the Secretary of State.
their paperwork may be rejected or may take monthsA foreign corporation in California is incorporated by
to complete. So it is always better to approach anany jurisdiction other than California to transact
attorney or use an incorporation service.business. To qualify for intrastate transaction business
The types of corporations that can be formed inin California, a statement should be submitted to the
California are non-profit corporations, profitState Secretary of California. Designation by the
corporations and foreign corporations. A profitforeign corporation must be included with the
corporation will be a legal entity that exists separatelystatement. Care should be taken because low quality
from its owners. It normally limits the owners frommicrofilm submitted documents will be returned unfilled.
personal liability. The taxes of the company are levied