Creating A California Corporation

A Limited Liability Corporation, commonly referred to as LLC, is a company that combines features of a corporation with a partnership-type business structure. The owners are referred to as members and not partners or shareholders.

To create a corporation in California, individuals need to be familiar with the business corporation laws of the state. This is because business corporation laws in California are unlike those in the other states of the USA. Apart from corporate laws, Californian corporate security laws are different from those of the other states as well.

Individuals need to follow a number of requirements when creating a corporation in California. The most important requirement is filing the Articles of Organization with the California Secretary of State in the prescribed form. Once filed, the approval process will take a few weeks. A state filing fee must be paid. The office of the Secretary also allows individuals to opt for a Foreign Qualification, which implies that they can do business with any organization outside the state of California.

The Articles of Organization must contain information like the name of the corporation, and whether members or managers will control the company. It must also give details about the name and address of the initial agent for service of process. The articles have to be signed by the Organizer. Articles may be prepared by lawyers or filed by individuals or groups interested in creating a corporation in California.

Individuals can also include additional articles, but the state office does not require them. This depends on the business model, and the individual's specific situation. If people are unclear about the terms relating to the creation of a corporation, it is best for them to consult a lawyer in California. Additional articles can include the events under which dissolution may occur. Articles limiting the powers of certain members or managers can also be included. Individuals have the choice of deciding the name of their California business corporation, which once approved will be reserved exclusively for them. However, the name should have some corporate sign such as Inc., Corp., Incorporated, or Corporation.

Article Source: http://www.content.onlypunjab.com

California Corporations provides detailed information on California Corporations, California Department Of Corporations, California Corporation Commissions, California Corporation Searches and more. California Corporations is affiliated with Delaware Division Of Corporations.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated