When starting a company, entrepreneurs have many decisions to make. One of the most important choices involves selecting the right type of business entity. There are myriad options. While some business owners will operate as sole proprietors or form partnerships, others will opt for limited liability companies or corporations. There are pros and cons to each of these business types, so it is important to get legal advice from an experienced and reputable startup attorney…
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Incorporating a business involves more than just filing the articles of incorporation with the state’s secretary of state. Failing to perform the necessary additional steps can create financial and legal problems. What follows are 5 essential steps in business incorporation: Choose Your Management Team The selection of a board of directors is a straightforward but essential task in a valid incorporation. Based on the type of corporation or state of incorporation, the number of directors,…
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Prior to launching your business, any limited liability company or corporation needs to pay California’s minimum franchise tax ($800) if using a California address as your company headquarters. A company that plans to have its base in, say, Oregon while registering to sell goods in California, may also need to pay the franchise tax fee, depending on various factors, including whether it leases space or hires employees in the state of California or if any…
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For those of you who believe California is not the most business friendly state in the union, here is a bit of good news which you may not be aware of. Assembly Bill 571 (“AB 571”), sponsored by the Corporations Committee of the State Bar of California, became effective as of January 1, 2012. AB 571 streamlines and simplifies the legal requirements governing distributions to shareholders by a California corporation in a manner that is…
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