When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the following steps have been developed to assist you in starting your business usually, there are a number of reasons that you will want to incorporate your business. It is helpful to begin with a business plan. A business plan is a blueprint of every aspect of your business. Legal Structure, Sales, Marketing, Advertising, Promotion and Location are just some of the categories to consider when creating a plan. Incorporation is the most common business plan in legal terms. The most obvious advantage of incorporation is that the company itself has a legal existence. This means it can, as an entity:
· sue and be sued,
· own land and buildings,
· enter into tenancy or lease agreements,
· enter into contractual agreements,
· receive a bequest or gift from a will, and
· perpetually exist and remain in existence no matter who is a member until it is
disbanded by law.
Secondly, the directors, office bearers and members are not personally liable for the debts of the club, nor the negligent acts or omissions of other office bearers and members, unless the rules specifically provide otherwise.
Thirdly, liability of members to contribute towards the payment of the debts and liabilities of
the company or the costs and expenses of winding up the club is limited to a sum provided in the
rules. Most people feel more secure and confident dealing with a corporation as opposed to a sole proprietorship. Having INC. or CORP. after your company’s name adds a touch of professionalism and credibility to your business dealings.
As always, be sure to consult with your attorney or business advisor before undertaking any important legal or financial decision. While there are many advantages and money-saving reasons to incorporate, as I’ve said before, it’s not for everybody.
3 Reasons to Form a California Corporation:
Protection from personal liability for business debts
Perpetual existence, so the corporation continues even if an owner dies or leaves the business
No limit to the number of C Corporation shareholders, who need not be U.S. citizens or permanent residents
This Incorporation Package includes all forms needed to form a corporation in your state and a step by step guide to the incorporation process. The package also includes forms needed after incorporation, such as minutes, notices, and by-laws. Items Included: Steps to Incorporate, Articles or Certificate of Incorporation, By-Laws, Organizational Minutes, Annual Minutes, Notices, Resolutions, Stock Transfer Ledger, Simple Stock Certificate, IRS Form SS-4 to Apply for Tax Identification Number, and IRS Form 2553 to Apply for Subchapter S Tax Treatment.