Incorporation in California
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. 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 advantages 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 satisfy its debts. Furthermore, banks in the Fresno area prefer to evaluate the credit worthiness of a business as a whole rather than that of individual owners. This makes the process of receiving corporate loans simpler. Lastly, 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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Incorporation Attorneys and Law Firms in the Largest CA Cities
Life in FresnoFresno is the seat of Fresno County, California and home to over 500,000 residents. As the largest city in the San Joaquin Valley, the Fresno Metropolitan area plays host to 1.2 million. Fresno is Spanish for ash tree. The ash tree's leaf is even featured on the City of Fresno flag. Many locals are work on large scale agricultural farms that produce many fruits and nuts distributed throughout the world. Community Medical Centers, the City of Fresno, Kaiser Permanente, and the Saint Agnes Medical Center are other major employers. Another major employer and attraction to Fresno is California State University, Fresno.
Fresno is host to a number of important Courts. The United States Courthouse for the Eastern District of California is located downtown and handles a number of Federal cases like Immigration issues. The Fresno County Court is responsible for many of the cases that arise in Fresno including Criminal cases like assault and DUI as well as Civil cases like personal injury. The Fifth Appellate District of the State of California Court of Appeals handles any criminal appeals. The San Joaquin College of Law is one of the local law schools serving potential Fresno lawyers.
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 incomes of owners as individuals are also taxed of course, meaning that income to the corporation might be subject to double taxation. However, this disadvantage can be avoided with proper planning and help from a local Fresno lawyer.