Incorporating a business can be a significant step forward for your company, but it’s something that needs to be done properly to avoid potential issues later on. To incorporate a business, you will need to have basic information about the company, such as the name of the business, who is going to own it, and what the business address is. After that, you need to file the appropriate paperwork depending on the structure you choose.
If you’re not sure what steps to take to incorporate a business, our law firm can help. We understand the different entity types and can help you choose the right one for your specific needs. When it’s time to make things official, we can draft all of the paperwork and make sure everything is done in accordance with California laws.
What Documents Do You Need?
The state of California requires that businesses have certain documentation to be able to officially incorporate. One of the most important of these is the articles of incorporation. This includes the basic information about your company and has to be filed with the Secretary of State. You will also need to open a business bank account and may need your business documentation to do so. Depending on the structure of your business, you may also be required to file a statement of information and an operating agreement.
What Does the Incorporation Process Involve?
The incorporation process involves a few steps. First, there is the initial planning. This is where you decide on the name for your business and who is going to have an ownership interest. Then, you will need to decide what business structure is the right one for your needs. Some common options include:
- Limited liability companies
- S corporations
- Sole proprietorship
Once you know what kind of company you want to form, you can start to draft and file the paperwork with the appropriate state departments. You will also need to get an employer identification number from the IRS, which is a tax ID number that works similarly to a Social Security number, but it is for businesses.
Do You Need an Attorney to Incorporate?
While businesses aren’t required to use an attorney to incorporate in California, that doesn’t mean it’s a good idea to try to do it on your own. A Southern California business attorney has the experience to know what kind of documents and information you need before you can incorporate and how to ensure everything is in the right format and filed with the correct departments to legitimize your business. A business attorney can also serve an invaluable role to new business owners, advising on which structure fits their needs and providing counsel on the day-to-day legal issues that can come up for companies.
Our law firm can help guide you through the incorporation process from start to finish. Contact our office today at 323-230-6200 to schedule a meeting and get more information on how our law firm can help. We currently serve clients in Beverly Hills and the greater Los Angeles County area.