You might be questioning what is the meaning of incorporation. Incorporation is giving your business a mind of its own, an independence. When incorporated, your business becomes a legal body with its own function separate from its owners and cannot be owned by only one owner.
When incorporating a business, one should decide whether he should incorporate his business federally or provincially.
In incorporating federally, the advantages are; (a) your corporation should be able to carry on business in all provinces as long as you register your business in a province or territory where you would conduct your business in, and (b) your corporation can use the same name even if another company is already using the similar name. The disadvantages are; (a) federal incorporation is costly, and (b) there's a lot more of paper work to do annually. When incorporating provincially, your business has the right only to undergo business within the province or territory where your business is incorporated.
It depends upon the limitation of the business to be incorporated whether to choose a federal incorporation or provincial incorporation.
How to incorporate in California?
First, you should select a proper name for your corporation. Selecting a corporate name is more difficult than selecting a name for single proprietorship or partnership because it requires legal, distinctive and descriptive elements in choosing a name.
Second, prepare or print the articles relating to how to incorporate in California, the Memorandum and the Notice of Offices. The articles of how to incorporate in California sets out the rules and regulations that will govern the conduct of staffs and members of the company. The Memorandum sets out the rules for the conduct of the company. And, the Notice of Offices states the location of the two required offices for your incorporation, the registered office and the records office.
Third, file your incorporation documents and apply for incorporation. Find the Secretary of State office and take the completed forms with at least three copies. The incorporation fee in California costs $100.00 and $15.00 if you want to get it on the same day or they just mail to you the finished documents.
Fourth, the last step is to file the list of officers at the same office. As long as you know who the officers are and they know what are their duties, you just have to fill the names of the officers and their addresses. It only costs $25.00 to file this paper. Then, you could start your incorporation business at any time.
I hope this article would be helpful to those enthusiastic businessmen who want to find solutions on how to incorporate in California.
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