Many businesses in Orange County have incorporated. If you are a small business in California and you want to incorporate, there are a few things you need to know. Here are basic tips regarding incorporating a business:
1. Corporate & Personal Matters Should Be Kept Separate
When a business incorporates, it becomes an entirely separate entity from its owners. The law views a corporation as an entity that should pay taxes separate from its shareholders. Therefore, it is very important that you maintain a sound business process, in order to preserve the benefits and protections of the corporation’s legal status.
2. Carefully Decide On Your Company Name
It is imperative that you get the name of your company right the first time, because if you do need to change it later, you will have to make a lot of amendments to your articles of incorporation. Articles of Incorporation are the documents filed when a company decides to incorporate. If you decide to change your company name, you will have to work on these other details too: getting a new domain name, getting a new listing on the telephone and in other directories, and obtaining new stationary and other business documents.
3. Website Domain Name & Company Name Should Be The Same
If not the same, the domain name should at least bear some similarity to the name of your corporation. This will help a lot in your marketing strategy, as having the domain name the same or similar to your company name increases your business’ presence online. This also implies that, before you choose a name for your company, it is best to go online and check whether there is a domain name that will match your company name or not.
4. Business Lawyers Can Help You Incorporate
It is best to entrust the process of incorporating a business to a competent corporate attorney in Orange County, California. They not only complete and submit paperwork that is necessary for incorporation, they also make sure that processes in general are done right. Entrusting the process of incorporation to a good corporate lawyer ensures that you will avoid unnecessary legal issues in the future.
5. Deciding on a What Type of Business Entity
There are various kinds of structures of business to choose from. Of course, it is better to have a business attorney in California assist you in deciding what business structure is best for your company. If it is a huge, publicly traded company that you intend to put up, a C corporation would be a good choice of business structure, because stocks in this type of structure are easily transferred. Some entrepreneurs want an S corporation for tax reasons, but this structure is limited to no more than 75 stockholders, and each should be an individual. For a small business, a Limited Liability Company (or, LLC) is the best type of business structure. Other common kinds of business structures include limited partnership and single proprietorship.