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The following article was published in our article directory on August 15, 2012.
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Understanding the Process of California Incorporation

Article Category: Legal

Author Name: John Pena

Setting up California incorporation is certainly neither an easy nor a simple feat. When you are planning to start an enterprise and you are planning to set it up as a California LLC, you need to prepare yourself for paperwork. It is also of great importance that you take a number of considerations seriously. Moreover, you have to take into account your objectives for wanting to set up a corporation. All these things have to be included in the Articles of Incorporation that has to be submitted to the California Secretary of State.

A corporation by definition consists of several individuals that are considered of different legal entities. This simply means each holds a separate legal status. The personal status of owners and shareholders that form a corporation are separate from the business entity they are associated with. So, in case of lawsuits or in the event the business is dissolved due to unresolved debt, owners are not liable. In this way, you get to protect your personal assets from being repossessed to cover for the debt your business has incurred during its operation.

Filing for California incorporation can be simple especially for someone who is quite familiar with the process. However, there are certain complexities especially involving the details that need to be included in the article of incorporation and the statement of information for California LLC that have to be properly determined. Compliance with the set guidelines is extremely important in making the process as favorably as possible.

So while you may feel like you do not require the assistance of a lawyer in going through the process, it is still a sensible idea to employ one. This is because you would most definitely benefit from the knowledge and experience of an expert in this matter. It is then advisable that you employ legal counsel to help you handle the matter. In this way, you are not bound to miss out on pertinent details that may be crucial in the approval of your business' application for California incorporation.

There are online services that provide assistance with setting up California LLC. And they can be of great help too. However, there are certain fees involved in such services. In which case, it is advisable for you to go through the terms and policies of the service first before you decide to avail of it. It is essential that you know exactly what to expect as far as charges and fees are concerned.

The reduced liability is one of the most favorable aspects of incorporating a business. Such can help you protect your personal assets and protect yourself from being liable to the business. Moreover, you as a person and the business are considered a separate entity. In which case, your personal credit rating does not have an impact on your business and vice versa.

But while you can definitely enjoy certain benefits of incorporating your business in the state of California, there are legal procedures that you have to comply with as well. This is to ensure that you enjoy all the advantages reserved to businesses under California incorporation. Compliance to such formalities are critical in maintaining your business status for California LLC.

Keywords: california llc, california incorporation

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