Incorporation in California

Before the documents can be drafted to start your corporation, a couple of decisions need to be made. First and foremost, your corporation needs a name that complies with California’s corporation laws and that will not violate another company’s trademark.


Next, directors of your new corporation are selected and appointed. The directors are central roles of the corporation, and make the financial and policy decisions for the corporation. After that, a corporation’s articles of incorporation must be filed with the California Secretary of State, along with a filing fee. Once the articles of incorporation are filed, your corporation is created.


Several basic details about your corporation have to be mentioned in your articles:
--The name of the corporation
--The corporation’s initial agent for service of process
--The total number of shares in the corporation


A corporation’s bylaws do not have to be filed with the CA Secretary, but need set forth the basic rules that govern the corporation. The bylaws usually establish when and where the directors’ and shareholders’ meetings will be held as well as the voting requirements for directors and shareholders. The corporation’s directors usually adopt the bylaws at their first board meeting.


The last step to incorporation is issuing stock certificates to the initial shareholders and recording who owns the shares in the corporation. After incorporation, the corporation must take certain steps to retain its status as a separate entity:
--Holding annual directors’ and shareholders’ meetings
--Keeping minutes of the directors’ and shareholders’ major decisions
--Ensuring that corporate officers/directors sign documents in corporation’s name
--Maintaining separate bank accounts from the owners
--Keeping detailed financial records
--Filing a separate corporate tax returns


If you are ready to create a business entity, contact our office to incorporate in CA.