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 Garden Grove 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. 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 Garden GroveGarden Grove is located near the beautiful area of Orange County, California. Garden Grove is a quaint city of approximately 170,883 and is known for being home to Robert H. Schuller's Crystal Cathedral.
The city primarily strives from the hotel industry and retail locations of all types. The area also has offices for Air Industries Corp., Driessen Aircraft Interior Systems, GKN Aerospace Transparency Systems, and Mircrosemi Integrated Products. For all legal inquiries, residents of Garden Grove look to Orange County. Orange County is home to a few law schools, as well as large, mid-size, and small firms offering legal services in all legal practice areas.
Attractions in Garden Grove include the Crystal Cathedral referred to above, and the Atlantis Play Center, a great spot for families. Other popular attractions are located nearby in Orange County and include Disneyland, California Adventures, Downtown Disney, Long Beach, Newport Beach, and Huntington Beach. All in all, Garden Grove is a small city in a beautiful area that offers its residents a wonder quality of life.
Costs of Incorporation
Incorporation can be costly. First, a modest filing fee may be charged in California for any business that wants to incorporate. Also, a corporation is taxed as its own entity. The incomes of owners as individuals are also taxed of course, meaning that income to the corporation may be subject to double taxation. However, this disadvantage can be avoided with proper planning and help from a local Garden Grove lawyer.