Incorporation in California

Find the right Business Incorporation attorney in Stockton, CA

California law allows a business to incorporate and be identified as its own legal entity. After incorporation, buying and selling property, agreeing to contracts and exercising legal rights are considered acts of the business itself and not its owners. The office of the Secretary of State is the agency that receives applications for incorporation in California, and they must be completed in conformity with specific guidelines.

Benefits of Incorporation in California

Benefits of incorporation are many. The primary benefit is that the liabilities of the business can only be satisfied by the assets specifically invested into the company by the owners. Had the business instead remained a collection of the owners' personal assets, the personal property of the stakeholders could be liquidated to pay the liabilities of the business, if it runs into financial issues. A corporation might also find it easier to finance itself through loans, allowing creditors in the Stockton area to evaluate their investment by assessing the corporation rather than the individual credit-worthiness of its owners. Finally, a corporations charter requires that ownership be divided into stakes or "shares" of stock, all of equal size. This makes the process of transferring control much more practical.

Costs of Incorporation

These benefits come at a price. First, incorporation in California may require a filing fee. Second, a corporation pays taxes just like any other entity. The individual incomes of owners who are paid disbursements from the corporation's earnings are still taxed as well. This is called double taxation, but it may be avoided with proper planning and assistance from a local Stockton lawyer.

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Life in Stockton

Stockton is a major inland port city and the seat of San Joaquin County, California. It's position amid Central Valley farmland, Interstate 5 and California State Route 99 make it an ideal hub for transit. Stockton is much more than agriculture and shipping though. A number of telecommunication and manufacturing companies are located in Stockton. The city is also an ideal place for renewable energy companies whom the city has encouraged though economic incentive programs. Much of their focus focuses on developing alternative fuels for agricultural development.

The waterways, plains, and diverse landscape of Stockton makes it an ideal location for movie makers throughout the ages. "Cool Hand Luke," "Dead Man on Campus," "Flubber," "Fat City," as well as "Indiana Jones and the Last Crusade" and "Raiders of the Lost Ark" are just a few classics filmed in Stockton. Stockton is a standout city nationally as well. It's received an "All-America City" and National Civic League award twice. The City of Stockton has emphasized safety through community programs and police presence in the past years. The city has also put emphasis on community partnerships like the Downtown Alliance that works to both decrease unemployment rates as well as keep the district busy and vibrant. Sunset Magazine even bestowed "Best Tree City" and "Best of the West Food Fest" awards upon Stockton. The University of the Pacific is located in Stockton with the second largest private university in the state, National University.

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