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 Fullerton area prefer to evaluate the credit worthiness of a business as a whole rather than that of individual owners. This makes the process of getting 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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Life in FullertonFullerton is located in the northern parts of Orange County, California. The city is named after George H. Fullerton, who originally secured the plot of land where the city is now situated. Fullerton, California is home to several employers and educational institutions such as California State University, Fullerton (CSUF).
Downtown Fullerton is a veritable cornucopia of entertainment with its mix of cantina-style eateries, local pubs, and jazz bars. The city of Fullerton, California is associated with the alternative rock music scene, as it is considered a cultural hub for that particular genre of music. Gwen Stefani, lead singer of the music group "No Doubt", attended CSUF, and the band has performed many shows in Fullerton.
Adding to the culture's rich cultural make-up is its equally impressive role in the history of music. Leo Fender, founder of Fender Musical Instrument Company, was born and raised in the city. He started his company in Fullerton, and the Fender factory produced some of the world's most innovative electric guitars.
Fullerton thus became known as a trend-setter in the music and entertainment scene. With its bustling night life and close proximity to Los Angeles, Fullerton is a major contributor to the economic and cultural vitality of California.
Lawyers in Fullerton, California contribute to the city's progress by providing a number of valuable legal services for residents. Fullerton lawyers typically process legal claims at the Superior Court of California, Orange County.
Costs of Incorporation
Along with a possible fee to apply 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 Fullerton lawyer, you can avoid this disadvantage.