Incorporation in California

Find the right Business Incorporation attorney in Sacramento, CA

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 certain 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 Sacramento area typically 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. 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.

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 individual incomes of owners who are paid disbursements from the corporation's earnings are still taxed as well. This is called double taxation, but it may be avoided with proper planning and assistance from a local Sacramento lawyer.

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Life in Sacramento

Sacramento is the capitol of the State of California, seat of Sacramento County, and still only ranks as the 6th largest city in the state. Cited as one of the most ethnically and racially integrated communities in the United States by Time Magazine, Sacramento plays host to a wide variety of public, private, and religious K-8 schools. California State University Sacramento, University of California Davis, and The Art Institute are just a few of the options residents have for higher education. In addition there are a number of other private, public, vocational, and community colleges in the area. The top employer in Sacramento remains the State of California. The California State Capitol Building was erected in 1874 and is reminiscent of the U.S. Capitol Building. "The Big Four" who included Mark Hopkins (of the Hotels), Charles Crocker (local Mansion/Art Museum and Rail tycoon), Leland Stanford (tycoon, industrialist, the university), and finally Collis P. Huntington (another Transcontinental Railroad tycoon) financed the construction of the Capitol Building out of pocket.

Sacramento has a number of outstanding museums and tourist amenities like the Crocker Art Museum, a local NBA team, a historic Old Town District, and the western terminus of the Pony Express which is Sutter's Fort. the Fort was erected in 1839 and is most famous for its association with the Donner Party and Sutter's Mill where gold was first found. Aside from the historical, Sacramento is host of the major courts in the area including the California State Supreme Court, Sacramento County and City Courts, and other Federal run courts. These buildings are largely located in Downtown Sacramento but serve the entire Central Valley.

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