Incorporation in California
California law allows a business to incorporate and be recognized as its own legal entity. After incorporation, buying and selling property, assenting to contracts and exercising legal rights are considered acts of the business itself and not its owners. In California, the process of incorporation is begun by filing with the Secretary of State in accordance with particular guidelines.
Benefits of Incorporation in California
There are distinct benefits to incorporating a business. Most importantly, liabilities the business accrues may be satisfied only by assets that the owners have specifically invested in it. With unincorporated businesses, personal property of owners can be liquidated in order to satisfy the liabilities of the business. Furthermore, banks in the El Cajon area prefer to evaluate the credit worthiness of a business as a whole rather than that of individual owners. This makes the process of obtaining corporate loans simpler. Finally, the ownership of a corporation is divided into an abundance of equal portions or "shares" of stock. Without this mechanism, transferring ownership of a business would be impractical.
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Life in El CajonEl Cajon, California is a city in San Diego County. It has a population of just under 100,000 people.
El Cajon, California was formed from a land grant from the Mexican government in 1845, and was officially incorporated as a city in 1912.
El Cajon is located inland from San Diego, and as a result, its climate has more variation than San Diego from one extreme to another, but compared to most other places, its climate can be considered quite mild. Summers in El Cajon, California are quite warm, though it rarely gets extremely hot.
Like most places in California, El Cajon sports a large amount of ethnic and religious diversity. El Cajon, California is also home to a burgeoning art and culture district, including art galleries, and a strong commitment to public art.
If you are facing a legal issue in El Cajon, California, chances are good that there is a lawyer nearby who is capable of handling your problem, whatever it might be. El Cajon, California lawyers are always ready to meet the legal needs of their community. If you have any legal trouble whatsoever, no case is too big or too small for an El Cajon attorney.
Costs of Incorporation
Along with a possible fee to file for incorporation in California, there are other costs that corporations incur. The most important is that a corporation is taxed as its own 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 can be avoided with proper planning and assistance from a local El Cajon lawyer.