Easy Questions  
Free Legal Documents

Orientation to Incorporation in Alleghany, CA

Orientation to Incorporation in Alleghany, CA


Many companies expect loyal customers without providing loyal service. This has been the visionary failure of countless corporations.
 
- Steve Maraboli


Forming a corporation limits the personal liability for business debts. However, there is more to the creating and running a corporation than doing paperwork. You have to spend your time in the business keeping a good record of all the business activities so that you will not find it hard to handle more complicated tasks like filing a corporate tax return. In terms of limiting liability, you have to be sensible in terms of decision making and record keeping. Getting organized is the key.

How to Form a Corporation

• File an "Articles of Incorporation" at the corporate divisions in the secretary's office of your state government.

• Create a corporate "bylaws" that states the basic rule that govern the ongoing decision or formalities of the corporate life.

• Issue stock certificates of the initial owners or shareholders of the corporation and document the ownership interest or the shares of stock in the business.


To retain the corporate status as a legal, separate entity, certain formalities should be observed by the owners of the corporation. This includes:

• Holding of directors' and annual shareholder meetings

• Minutes of meetings and agreement or decisions should be documented

• Signing of documents by the corporate officers and directors should be done under the name of the corporation

• Bank accounts are separate from the personal accounts of the owners

• Maintain a detailed financial records

• Income tax return should be filed separately

Limited Personal Liability

Personal assets of the people involved in the corporation are protected from the creditors. In cases where a corporation owes a creditor, your personal assets is protected because only corporate assets will be use to pay the debts. The only money you will likely end up losing, is the money you have invested in the corporation.

Exceptions to Limited Liability

There are situations where the owners' personal asset is not protected by limited liability. The owner of the corporation will be held personally responsible if:

• Directly and personally injured another person

• Personally guarantees a bank or business loan which the corporation fail to pay

• Fail to deposit withhold taxes from employees

• Intentionally engage in fraudulent causes that can harm the company

• Treats the corporation like an extension of his personal affairs and not as a separate legal entity

Corporation should be treated as a separate legal entity. This is the very important especially in cases involving court proceedings. The court can rule that the corporation does not exist and the owners should not be shielded from their personal liability for their actions. This is likely to happen if you did not follow the routine corporate formalities such as:

• Adequately investing money in the corporation

• Formal issuance of stock to the initial shareholders

• Holding of meetings regularly of the directors and shareholders

• Keeping a separate business records and transactions from those of the owners


Liability Insurance

Forming a corporation can protect your personal assets but it should not be an excuse for not getting insurance. Insurance can be a good investment that can protect the company from lawsuit and claims. The risk of doing business can be minimized by getting a solid liability insurance policy. Any claims made by the corporation can be covered by the insurance as long as the corporation is also doing its part like paying the bills and other corporate responsibilities.

Paying Corporate Income Tax

Corporate income tax refers to the taxes paid by the corporation on whatever profits they left after it has paid all the available expenses like salaries, bonuses, overhead and other expenses. It uses a tax return form to be filed to the IRS and pay taxes at a special corporate rate tax. In terms of the owner, if he is working for the corporation, he should be paid a salary and possible bonuses like other employees and pay their taxes using their own personal tax return.

Corporation shareholders can choose to elect an S corporation status by filling at the IRS a tax Form 2553. Using this form can mean that the corporation will be treated like a partnership where business profits and loss will be reported on the each shareholder‘s individual tax returns.

 
Personalize & Print a Free CA Last Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free CA Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Alleghany, CA
Ko Paul W
1601 Bayshore Hwy Ste 249
Burlingame, CA 94010
(650) 777-9999
Attorneys, Legal Service Plans
Asobie Ugo
3540 Wilshire Blvd # 508
Los Angeles, CA 90010
(213) 385-9991
General Practice Attorneys, Attorneys, Legal Service Plans
Hersh V Kapoor
3540 Wilshire Blvd
Los Angeles, CA 90010
(213) 385-9991
General Practice Attorneys, Attorneys
Steven L. Walker
303 Almaden Blvd
San Jose, CA 95110
(408) 828-9989
Attorneys,  Bankruptcy Law Attorneys,  General Practice Attorneys,  Legal Service Plans
Pappas Diane
400 Mobil Ave # C3
Camarillo, CA 93010
(805) 389-9988
General Practice Attorneys, Attorneys, Legal Service Plans
Sollitt Mark
8421 Auburn Blvd
Citrus Heights, CA 95610
(916) 797-9988
Attorneys
Sawdayi Devin Law Offices
9107 Wilshire Blvd # 225
Beverly Hills, CA 90210
(310) 552-9937
Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law
John M Angerer
7011 Sylvan Rd
Citrus Heights, CA 95610
(916) 235-9913
Financial Services,  Social Security & Disability Law Attorneys,  Attorneys,  Estate Planning, Prob
Matthews Leo
4322 Wilshire Blvd # 200
Los Angeles, CA 90010
(323) 317-9885
General Practice Attorneys, Attorneys, Legal Service Plans
Ye John C
3660 Wilshire Blvd # 1040
Los Angeles, CA 90010
(213) 249-9877
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Netzer & Malmo Personal Injury Attorneys
720 E Bullard Ave
Fresno, CA 93710
(559) 440-9800
Personal Injury Law Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans,  Accid
So Cal Criminal Defense Attorneys
3250 Wilshire Blvd
Los Angeles, CA 90010
(213) 351-9796
Attorneys
Eugene Action
1780 E Barstow Ave Ste. 5
Fresno, CA 93710
(559) 283-9772
Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Civil Litigation & Trial Law Attorneys,  
Immigrant American Foundation Fundemi
3540 Wilshire Blvd # 618
Los Angeles, CA 90010
(213) 351-9736
Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
Anastasi & Nielsen
255 N. Market St. Suite 150
San Jose, CA 95110
(408) 294-9700
Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys
Sagaria Law, P.C.
333 W San Carlos St # 1625
San Jose, CA 95110
(408) 753-9700
Attorneys, Bankruptcy Services, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Leg
Mediation & Family Law Document Service
215 E Daily Dr Suite 28
Camarillo, CA 93010
(805) 914-9644
Paralegals,  Legal Document Assistance,  Divorce Assistance,  Attorneys Referral & Information Servi
Franklin Jonathan
427 N Canon Dr
Beverly Hills, CA 90210
(310) 273-9600
General Practice Attorneys, Attorneys
Murphy John J
3990 Old Town Ave
San Diego, CA 92110
(619) 291-9593
General Practice Attorneys, Attorneys, Legal Service Plans
Arter Lee
2033 Gateway Pl
San Jose, CA 95110
(408) 287-9533
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Broderick Saleen Law Firm for Sexual Harassment & Employment Law
2033 Gateway Place Ste 500
San Jose, CA 95110
(408) 621-9525
Personal Injury Law Attorneys, Employment Discrimination Attorneys, Sexual Harassment Attorneys
Contreras Raymond M
721 3rd Ave
Chula Vista, CA 91910
(619) 425-9500
General Practice Attorneys, Attorneys
Adam Brewer
319 F St Suite 201A
Chula Vista, CA 91910
(619) 591-9500
Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  Bankruptcy Services,  Bankrup
Roman P. Mosqueda
3460 Wilshire Blvd # 407
Los Angeles, CA 90010
(213) 252-9481
Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys, Divorce Attorneys, Immigration Law A
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US