California Incorporation
California is known for being anti-business. When it comes to California incorporation, this means one has to comply with a bevy of regulations and rules issued by multiple agencies.
California Incorporation Lawyer
I love the internet, but there are niches online that are simply misleading. One of those areas has to do with the incorporation process in California. You will read a variety of articles that suggest the process is as simple as paying a quick fee, filing a form with the Secretary of State, opening a bank account and getting on with the process of running the business. This is wishful thinking and has resulted in more than a few businesses running into terminal problems.
A common question I receive is why should someone use our California incorporation services instead of just using a cheap online service. The key is to understand what the cheap online services do. They cannot "practice law" in the state, but they can file forms and that is just what they do. They will file your articles of incorporation with the Secretary of State and then send you a CD with some other forms that, of course, you will never read or fill out. This is the equivalent of slapping up the framing of a home without putting a roof, plumbing, insulation or electrical in it. It looks like a house at first glance, but will not provide you with the protection form the elements that you need to be safe and comfortable.
Let's consider a simple example. Let's assume you and a friend decide to form a corporation or LLC to pursue your business idea. This is a smart move, but you need to hammer out a shareholder agreement. What is it? It is a document that details the duties of each person and what happens if those duties are not carried out. A common situation that will develop is one owner loses their interest in the business. A shareholder agreement is going to detail how that person will exit the corporation. Without such a document, this scenario can often lead to a court battle over control of the company and any buyout. Expensive battles!
If you are going to incorporate in California, it is critical that you start out on the right foot. Contact me today at 619-637-6043 to learn more.
