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 Monte area prefer to evaluate the credit worthiness of a business as a whole rather than that of individual owners. This makes the process of acquiring corporate loans simpler. Lastly, a corporation's ownership stake is divided into equal slices or "shares" of stock, which make investments in the business much easier to transfer.
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Life in El MonteEl Monte is near Los Angeles, California and home to approximately 113,475 residents. It is known as a friendly area that lies in the San Gabriel Valley region of east Los Angeles.
Popular attractions in El Monte are the American Heritage Park and Museum, Rose Hills Memorial Park, El Monte Historical Museum, Whittier Narrows Nature Center and Wildlife Sanctuary, American Society of Military History, and The Rawhide Ponies.
Top employers in El Monte include Wells Fargo, Vons, Toyota, Lexus, Cathay Bank, and elementary and high school districts.
El Monte is home to many small law offices, with competent attorneys practicing in most areas of law. If need be, residents may look to larger firms located in Los Angeles as well. Overall, the legal force within and near El Monte, California is very strong and capable of handling all legal inquiries.
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 the owners are still taxed also, and this can mean the same income is taxed twice, known as double taxation. With proper planning and assistance from a local El Monte lawyer, you can avoid this disadvantage.