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 certain 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. Without incorporation, the personal property of business owners is at stake should the company become unable to fulfill its debts. Furthermore, banks in the Foster City 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 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.
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Life in Foster CityFoster City, California is a master-planned city situated in San Mateo County. It has a population of about 31,000 and is sometimes held to be part of Silicon Valley due to its local industry. Foster City is considered an affluent community and has been featured several times in Forbes Magazine as well as Money Magazine.
As a master-planned city, Foster City offers many advantages and amenities, such as an efficient distribution of stores, restaurants, and resources. Master planning helps developers avoid "haphazard" construction and city layout. This has contributed to much of Foster's City's clean and pristine appearance. Foster City is also home to a number of attractions, including a boardwalk, a 9-hole golf course, an extensive $4 million Teen Activities Center, and a public amphitheater. Windsurfing is extremely popular within city limits.
Foster City, California is also known for being an important center for many high-tech companies as well as financial organizations. The city is headquarters to many nationally recognized businesses such as Adchemy, Gilead Sciences, Life Technologies, Live365, Philips, Sony Computer Entertainment America, and many others. One can access several points in the Bay Area from Foster City due to its location near the San Mateo Bridge.
Lawyers in Foster City, California often represent their clients at the Superior Court of California, County of San Mateo. The court house has integrated much new technology including an electronic document camera. Foster City attorneys are available for assistance in many different fields of law.
Costs of Incorporation
These advantages 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 can be avoided with proper planning and assistance from a local Foster City lawyer.