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The following article was published in our article directory on August 21, 2012.
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How to Set Up California Incorporation

Article Category: Legal

Author Name: John Pena

If you want to pursue building California incorporation or putting together California LLC, it is best you use the following guidelines to help steer you in the right direction.

First of all, you need a name for your enterprise. There are certain precautions when choosing a name for your business. But the most basic of it all is that you have to make sure the name you decide on is in no way similar to an existing company as per the record of California Secretary of State. It is in your best interest to avoid commonalities with existing business labels. This is to ultimately avoid any legal action against you and your business for copyright infringements.

Second, you need to determine your board of directors. California law requires a corporation to have at least three board directors. There is an exception to this legislation though. In the event that your corporation only has one or two investors, you may become an exception. However, this circumstance should be clearly declared on the by-laws or the Article of Incorporation.

Moreover, there is no age limit or specification in the residency of board representatives for California incorporation. As a matter of fact, you may appoint a director who holds permanent residence in New York or some other state for the California LLC you are trying to put together.

The third step involves filing the necessary paper work to the Filing Division of the California Secretary of State. You have to make sure that you have run through the information and guarantee the documents to be free from error. In drafting the papers, it is critical that you stick to the proper format. Along with the documents, you have to attach a cover letter and payment. To ensure the documents are error free, it is recommended that you refer to the filing instructions for the specific state.

Fourth, an organizational meeting has to be conducted. The agenda of the meeting includes the adoption of the bylaws or the operating agreements that apply to California LLC. In this meeting, important matters have to be discussed including the allowed ownership percentage of the individual shareholders and members. Other crucial matters such as opening a bank account for the company as well as paying the pre-incorporation expenses have to be duly settled.

Fifth, an FEIN or Federal Employment Identification Number is also required. And so, you have to be ready to make a request for this. Moreover, a company savings bank account has to be opened. The next step then is to obtain a license from the city itself where the business will be in full operation.

Sixth, once the necessary information have been settled and discussed, you need to come up with the Statement of Information. Keep in mind that this form has to be submitted not more than 90 days after setting up the California incorporation or California LLC.

If this seems like a lot of hard work, you can always consult or seek assistance with regard to the matter. You can avail of offered assistance online to make the process of California incorporation much simpler. As a matter of fact, such companies can help you all the way through setting up the California LLC.

Keywords: california llc, california incorporation

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