What are the basic steps to incorporate in California?
Your first step should always be to contact your local corporate law firm and confirm the specific needs of your future corporation. But before your set consultation time, there are some basic documents and information that you can gather to make the process go more quickly.
California Corporation Formation Checklist:
NAME
Choose a name for your corporation.
Make sure the name is available.
DIRECTORS
Name one or more directors for your corporation.
In California, the law requires a corporation to have a minimum of three directors, unless there are less than three shareholders. For example, if you are the only shareholder of your corporation, you only need one director but can have more if you choose.
Articles must be filed with the Secretary of State and follow guidelines laid out on the California Secretary of State website.
BYLAWS
Bylaws are required for corporations under California law.
A copy of the bylaws are to be kept at the corporation’s principal place of business.
Bylaws typically include information regarding the rules, responsibilities, and procedures of the corporation.
STATEMENT OF INFORMATION
The California filing fee is $25.00 and a statement must be filed each year with the Secretary of State.
The first statement must be filed within ninety days of the Articles of Incorporation’s filing date.
MEETING
Once the three key documents are completed and filed, an organizational meeting is to be held.
Your corporate law firm can help you determine the easiest and most efficient way for your corporation to comply with California’s meeting and records requirements.
STOCK
California has a statute relating to the rules and regulations for stock certificates.
A corporation must authorize a specific number of shares, but does not need to sell or issue all of them.
TAX AND OTHER REGULATIONS
Obtain an Employer Identification Number (EIN) from the IRS.
Inform the IRS and State of California each time the corporation hires an employee.
Pay the franchise tax for corporations doing business in California. The tax is $800.00 minimum (as of January 2014).
Obtain and maintain workers’ compensation insurance.
BANK ACCOUNTS
To open a bank account for your corporation, you will need your EIN, a copy of the filed Articles of Incorporation, and a “Banking Resolution” which lists the authorized signers for the accounts.
When to Contact a Corporate Law Firm
If any of the above checklist items seem overwhelming or unclear, it may be time to get in touch with a nearby attorney who specializes in corporate law. Additionally, for information on how to for an S-Corporation, Close Corporation, or Public Purpose Corporation, contact Attorney Andrew Gale, a local Orange County Business Attorney.
For more assistance or to ask an orange county corporate law firm-specific questions about your business, please contact us at info@galeandvallance.com, or (714) 634-1414.
Here is a telling testimonial from a local Orange County realtor Jordan Bennett who is a long-standing client of Incorporation Attorneys.
Jordan originally met Andrew Gale at a local BNI (business networking International) group in Orange, California. This interview demonstrates the value of small business owners joining local networking groups. As described in this video, subsequent relationships can become strategic to forming a stable and successful business.
Forming a strong relationship with an attorney who understands your business should be considered a “must-have” for any serious entrepreneur.
Business Networking Orange County BNI Client Testimonial – A Processed Video Transcription
Andy: “You’ve been one of my clients now for three or four years I would think. Is that right? How did you and I meet?
Jordan: “You and I met at a BNI meeting, which is a networking meeting, Orange County Business Networking International, and gradually build a relationship through meeting each other for lunch every year, every week, and then also you and I meeting outside of the chapter and getting to know each other on a more personal level.”
Andy: “How did I help you with your business?”
Jordan: “Well, you brought to my attention the fact that now that I was doing business it would make a lot of sense to consider forming a corporation both for tax purposes, for liability purposes, and just the planning. You definitely provided the wisdom to show me the direction that I needed to go because I’m not an attorney. So, how would I have known that if somebody hadn’t shown me the way.”
Forming a Corporation
Andy: “How did our relationship work once we’ve got started?”
Jordan: “Very well. You walked me through the process. Even through the process of a questionnaire, getting as much information upfront as possible and making sure that everything was tailored to my business and what would make the most sense for me and the best thing is that you’ve been just available.
A lot of times I feel like, you know you go to those trade shows and they get all the promotional items and all the samples on the table? Well, I feel like my relationship with you is like I’m going to that table and stealing all the goodies because you’re constantly available answering questions I have.
You have been a fantastic resource in terms of guiding me through any intricacies in terms of the way my business is changing and what needs to be done. So that has been a huge resource and asset to my business.”
Andy: “Is there anything you think would be important to know about me that there is this one thing that I do the best or in your opinion what would that be?
Andy Gale – Smal Business Attorney
Jordan: “I think many people make a lot of jokes about small business attorneys and give attorneys a hard time because they tend to be kind of stick in the mud and real formal. The best thing about you is that you are just really down to earth, just very honest, very candid, and very available.
I think you have a personal relationship with a lot of your clients where I think a lot of small business attorneys don’t have that. They’re much more removed, almost kind of aloof. You know, just do the work and move on to the next client.
What I appreciate about you is that, like I said, you’re available. You take my calls and you kind of, as my business grows, you’ve grown with me and been able to take me to the next level and show me what needs to be done each step of the way.
That’s just been like I said, a huge asset to me. I mean, you’re really one of the people that are on my team. You know, I have my banker, my attorney, and my CPA. Without you, I wouldn’t know what to do with the legal aspects of my business and that’s obviously critical when it comes to owning a business. You want to make sure that things are done properly.”
Andy: “Well, Jordan, I couldn’t thank you enough for those nice comments. I really appreciate it and I really look forward to a lot of good years working together.”
This quarter the newsletter focuses on driver’s license laws and reminders, disclosing information when selling your home; choosing the executor of your will, and the steps to take before signing a contract.
Your Driver’s License – Understanding the Rules of the Road It is important to know the laws revolving around your driving privilege because the effects of breaking them are not only inconvenient but dangerous for the general public. Read more…
Skeletons in Your Closet – Disclosures when Selling Your Home As a buyer or a seller, the transfer of a home should involve honest communication regarding the defects of the property, otherwise, you may face expensive legal problems down the line. Read more…
Points to Ponder in Picking an Executor Even lawyers disagree about who makes the best executor. The large burden can be daunting to a family member, but a legal professional may not understand the family’s specific nuances. Gale and Vallance can provide guidance on who to name as your executor. Read more…
Don’t Get Burnt by Boilerplate Contracts When a substantial amount of money is at stake, take the time to sit down with the form and underline any parts you don’t understand. Then find out what they mean from someone you trust, such as your attorney. Read more…
Highly recommended!
Andy Gale & the associates at Gale and Vallance were awesome in setting up the CA Professional Nursing Corp for ARF Admin Solutions. They were very responsive and knowledgeable from the start. Highly recommended!
George
01/01/2023
Business legal services
Gale & Vallance provided excellent business legal services. The firm was professional, prompt and prepared. The entire process of starting a new corporation was easy and affordable. They have my recommendation.
Raj
07/10/2022
Highly Recommend!!!
I met Andrew Gale through a mutual friend several years go. I was so impressed with their business practice that I made it a point to get to know the attorney to expand my own business. Several years later following their advice i am successful with my business endeavors and do not make any decisions unless i consult with them. Not only do they manage my corporations but also literally help 30 of my clients who use their services. Rare gems in the industry. Highly recommend Gale and Vallance.
X
Incorporation Attorney
1820 W Orangewood Ave Ste 104a, Orange, CA, United States
This firm is excellent, efficient, reliable, with great valuable expertise and very thorough. Their dedication to providing great work and service is apparent in their kind, supportive, consistent great communication. Including providing consistent updates on new laws and regulations. Working with them and having them on my team, I have the confidence and reassurance that all services provided will be of great assistance and help to the continued positive growth and success of my corporation business along with the maintenance of keeping in compliance with and within federal state laws and regulations.
Hannah K
27/01/2024
A trusted colleague/friend of mine actually referred me to Andy's firm and I'm really grateful!
He and his team were incredibly prompt, informative, helpful, and patient (with inevitable questions that came there way by a new business owner like myself). With all the specificities it takes to create a business, this team was awesome in communicating with me and assisting me with navigating not only the needs to get the ball rolling but also how to keep it rolling and with tips to help with bank accounts and accounting packages (if I were to want to take those routes).
They were also very neutral in providing all the options possible and when I requested advisement or pros/cons, they were able to share these promptly and in a way that helped me choose what was best for me.
I'm glad to have worked with them and will continue to work with them
Courtnie L.
07/11/2023
I am so grateful for Andy Gale and his firm's help in getting my S Corp established. He has great expertise and I feel more at ease knowing everything was set up properly with their assistance!
X
Incorporation Attorney
1820 W Orangewood Ave Ste 104a, Orange, CA, United States
Andy and his team were a pleasure to work with! As an LMFT opening a private practice, I was nervous and felt like I didn't know what I was doing. Andy did a great job at explaining everything step by step. I got off of our kick-off call feeling confident and ready to take the next step to opening a practice! I decided to go with a corporation for my private practice. Andy and his team are thorough and answered all my questions throughout the process. I was surprised how quickly everything was taken care of. They also sent me emails along the way, giving me updates. I will be using them for my yearly legal needs. 10/10 recommend!
Julie Eyssallenne
12/11/2023
Andy and his team of professionals are amazing to work with. Not only are they extremely knowledgeable and professional, but they are also very friendly and easy to work with. They will always be my go-to. I appreciate Andy and his team!
Z D
12/01/2024
I could not be more pleased, and frankly impressed with the expertise, attention to detail, follow-up and professionalism of the whole office staff. Andrew Gale Esq is extremely knowledgeable of his craft. His overall approach to corporation creation and management took any doubt or apprehension I had about the process.
Thank you so much for everything and I look forward to a long relationship with your legal practice.
Zouhair Kevin Daif, FNP, Nursing P. C.
