Forming a business entity in California can be an exciting process, but it is also complicated. It is essential that you start your business off right by choosing the right type of legal business structure. At the Law Office of Daniel Hunt, we offer our clients everything they need to form a California business in a cost-effective manner. Whether you are creating a corporation, a limited liability corporation, or a limited partnership, our skilled legal team can help you incorporate your business cost-effectively.
Incorporate Your California Business for a Low Fee
We typically begin the process with a short 30-minute consultation to discuss the process of incorporating your business. We will listen to your goals and help you choose the best type of business for your needs. If you are not sure which kind of business entity you should form, we will explain the differences between commonly used business entities so you can make an informed decision.
We will also discuss the tax implications, benefits, and disadvantages of California C corporation vs. California S corporation status. At the end of the consultation, we will request any documents we need to incorporate your business for you. Then we will get to work creating your business formation documents. After we incorporate your business, we will provide you with your founding documents, and answer any questions you may have.
Business Formation Fees
Our low fees for incorporating a California business range from $1,200 to over $2,500, depending on the business entity you select. The cost to create a California Corporation ranges between $1,200 and $1,500, depending on the complexities involved in forming your business. For limited liability corporations, the cost starts at $1,500 and increases depending on the work’s complexity. Finally, the price of creating a limited partnership starts at $2,500 and increases depending on the complexity of the work. When we meet with you at the initial consultation, we will give you a better general idea of the cost of creating your corporation.
Services Included in Our California Incorporation Packages
Our business clients can rest easy knowing that we have taken care of all of the legal work so they can begin their business on the right foot. Many of our clients are small to midsize businesses. We understand the financial challenges involved with forming a business, and that is why we provide our clients with full-service packages for an affordable cost. When you hire the Law Office of Daniel Hunt to incorporate your business, we will include all of the following services:
- Initial consultation to get an overview of your goals and needs
- Corporate name clearance and reservation
- Preparing and filing your Articles of Incorporation with standard indemnification of the directors and officers of your corporation
- Preparing your Resolution of the Incorporator
- Preparing your Bylaws which will outline your corporation’s management
- Preparing the Organizational Minutes, also called Resolutions for your Board of Directors
- Preparing the IRS form SS-44 so you can obtain a Federal Taxpayer Identification Number (FEIN)
- If you choose S Tax status, we will prepare IRS form 2553 S-Election
- Preparing a letter from all of your shareholders requesting their issuance of shares in your corporation
- Preparing stock certificates for your corporation to issue to your shareholders
- Preparing the stock ledger of your corporation
- Preparing the Commissioner Notice of Transaction
Forming a Corporation in California
One of the main advantages of incorporating your business in California is to limit your liability and to enjoy tax benefits. Forming a corporation can save you on self-employment taxes and minimize your chances for an IRS audit. You can also issue stock to key employees and formalize your relationship with your investors and partners. Corporations fall under S or C status. If you are unsure whether you would like your corporation to be an S or C corporation, our experienced lawyers can review all of the benefits and disadvantages of each type of classification. We will make sure you choose the type of corporation that will give you the most advantages so you can move forward with your business.
Forming a Limited Liability Corporation in California
For clients who do not want to create a corporation, creating a limited liability Corporation is an excellent option. Forming an LLC offers business owners the tax liability protections corporations offer, but the process is typically much simpler. LLCs are managed by their members, or by one member. LLCs can appoint separate managers, or the members of the LLC can run the company. When husband and wife teams or family members run a small business, LLCs are often the best legal structure to use because they are more straightforward and cost-effective to manage.
Forming a Limited Partnership in California
Limited partnerships are businesses formed by two or more people. These business entities must have at least one limited partner and one general partner. The limited partner has less liability, and they are only liable for the partnership debts equal to their investment in the business. Typically limited partners do not have as much knowledge or participation in the partnership’s activity as the general partner. On the other hand, general partners usually run the business and have more liability on behalf of the business.
Forming a limited partnership can help protect your assets, but they are easier to form and manage than corporations. Over the years, we have seen many clients start business partnerships without formally creating a limited partnership, exposing themselves to risk. Forming a limited partnership will help you and your partner stay protected while operating their businesses.
Contact Our Business Formation Lawyers Today
If you are going to start a business in California, or you have already started a business but have not created a legal entity for your business, we can help. Contact the Law Office of Daniel Hunt today to schedule your initial consultation.