Small business owners are often enticed by the tax and liability benefits of incorporating a business. However, going from a sole proprietorship to a corporation may seem like a daunting task. Here are 5 important phases involved in setting up a new business as a corporation in California.

  1. Choosing the Company Name. You need to be sure that the company name you want to use is available. This can easily be done on the California Secretary of State
  2. Choose the Best Business Formation Type. What will be best for your business? Should you form an LLC, a C corporation, or an S corporation? A business attorney can help you to compare the advantages and disadvantages of each corporation type.
  3. File Articles of Incorporation. Filing these articles correctly is an important factor in ensuring that you actually gain corporation status for your business and all of the benefits and protections that come along with it, so don’t leave this up to chance. Get the help of a business attorney or at least have your work checked by one before submitting it.
  4. Paying the Filing Fee. As of the writing of this article, the filing fee in the state of California is $100.
  5. Obtain a Business License and Seller’s Permit. California requires business owners to acquire a number of licenses and permits regardless of what your business sells or does, so you want to be sure to file for everything correctly at the start so as to avoid costly fines later on.

Help for New Business Formation in the San Diego Area

If you are forming a new business in the San Diego area, Pokala Law can help. We’re a small business, so we understand the needs of small business and provide affordable services. To learn more, call us today at 1-844-695-1487 or contact us through our website.