Form a Corporation in Los Angeles
The First Steps in Establishing Your Corporation
Before the documents can be drafted to start your corporation, a couple of decisions need to be made. First and foremost, your corporation needs a name that complies with California’s corporation laws and that will not violate another company’s trademark.
Next, you need to select and appoint the directors of your new corporation. The directors make the financial and policy decisions for the corporation. An owner of the corporation can be a director, but a director does not have to be an owner.
Incorporation in Los Angeles
Two documents are essential to the creation of a corporation.
A corporation’s articles of incorporation must be filed with the California Secretary of State, along with a filing fee. The articles of incorporation create your corporation.
The articles of incorporation set forth a few basic details about your corporation:
- The name of the corporation
- The corporation’s initial agent for service of process
- The total number of shares in the corporation
A corporation’s bylaws set forth the basic rules that govern the corporation. The bylaws usually establish when and where the directors’ and shareholders’ meetings will be held as well as the voting requirements for directors and shareholders.
The corporation’s bylaws do not have to be filed with the state. The corporation’s directors usually adopt the bylaws at their first board meeting.
The final step to incorporation is issuing stock certificates to the initial shareholders and recording who owns the shares in the corporation.
After incorporation, the corporation must take certain steps to retain its status as a separate entity:
- Holding annual directors’ and shareholders’ meetings
- Keeping minutes of the directors’ and shareholders’ major decisions
- Ensuring that corporate officers and directors sign documents in the corporation’s name
- Maintaining separate bank accounts from the owners
- Keeping detailed financial records
- Filing a separate corporate tax returns
If you are ready to create a business entity, contact us to incorporate in Los Angeles.