Incorporation in California

Riverside Incorporation Attorneys, CA

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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. The office of the Secretary of State is the agency that receives applications for incorporation in California, and they must be completed in conformity with particular guidelines.

Benefits of Incorporation in California

Certain advantages inure to a business in California that has incorporated over one that has not. First, a corporation's liabilities can never go beyond the amount invested in the business by the owners. With unincorporated businesses, personal property of owners can be liquidated in order to fulfill the liabilities of the business. Also, creditors in the Riverside area usually prefer to deal with corporations, since a loan is an investment more easily evaluated when the credit-worthiness of various owners is not an issue. Finally, the ownership stake in a corporation can be apportioned into uniform slices, known as "shares" of stock. This makes it possible to sell ownership investments in more manageable slices.

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Life in Riverside


The City of Riverside is unsurprisingly the seat of Riverside County and home to numerous historical, cultural, and educational institutions. In fact, Riverside is called the "City of Arts and Innovation." The Fox Performing Arts Center is better known as the "Fox Theater" is best known for being the location for the first theater preview screening of the American Classic "Gone with the Wind." The Fox Theater was recently restored and reopened for a sold out Sheryl Crow concert. It's located in downtown near the California Museum of Photography, which boasts the most comprehensive photographic collection west of the Mississippi. The Riverside County Historic Courthouse is a historical and architectural attraction built in the "beaux arts" style. There are also a number of Queen Anne style homes in Riverside's Historic District.

Annual visitors come to Riverside for events like the Riverside International Film Festival, Riverside Air Show, and the Riverside Dickens Festival that campaigns for literary and community awareness. Other seasonal visitors include students attending the nearby institutions of higher education like nearby University of California at Riverside. UC Riverside is also the largest employer in the city with over 7,100 faculty and staff. California Baptist College, California Southern Law School, Riverside City College, and La Sierra University round out the other major colleges in Riverside. There are also a number of important courts in Riverside like the United States District Court, US Bankruptcy Court for Central California, Riverside Superior Court, and California Court of Appeals. You might guess there would be a number of knowledgeable lawyers in the area as well. Bakersfield actually offers a number of lawyers who specialize in more than Criminal, Bankruptcy, and Immigration cases. The bustling film industry in Riverside has brought a number entertainment and contract related lawyers to the city.

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. Disbursements to the owners of the corporation are also taxed as individual income, so this means earnings might be taxed twice. But this double taxation can be avoided with proper planning and help from a local Riverside lawyer.

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