Incorporation in California

Half Moon Bay Incorporation Attorneys, CA

Find the Right Lawyer Now

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, a business that has not incorporated puts the unnecessary burden on creditors in the Half Moon Bay area to evaluate the credit worthiness of individual owners rather than that of the business, making loans more cumbersome. 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.

Find a Half Moon Bay Lawyer that Specializes in Your Area of Need:

2 Business - Transactional cases posted to LegalMatch lawyers in Half Moon Bay

Incorporation Attorneys and Law Firms in the Largest CA Cities

Show California Cities

Costs of Incorporation

There are costs associated with incorporation, both short and long term. First, businesses in California may be charged a fee to incorporate. Also, 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 Half Moon Bay lawyer, you can avoid this disadvantage.

Find the Right Lawyer Now

Breach of Contract Lawyers in Other California Cities and Towns

Need a Business Lawyer?

No obligation - Lawyers compete for your case. Choose your issue & get started now: