California Standard Corporation

A California Standard Corporation is a standard form corporation, providing asset protection and allowing for the most growth potential of any California Corporation. The C Corporation is viewed as a separate legal entity for both liability protection and taxation purposes. A Corporation is taxed separately from its shareholders.

When should you choose a C Corporation over other forms of business entities?

You should consider forming a C Corporation if one or more of the following applies to your situation:

• You will have more than 35 shareholders or plan on taking the company public (registering it with the SEC so the company's stock can be traded on the Stock Market.)
  
  
• You plan to issue more than one class of stock (i.e. preferred stock in addition to common stock ).
  
  
• You desire to deduct the cost of benefits, such as health insurance premiums through a “cafeteria plan”, as a business expense. This is a complex issue; consult a benefits professional if considering implementing a benefits plan.
  
  
• You desire to have foreign owners or investors.
  
  
• You desire for the corporation to be taxed as a separate entity.
  
  
• You do not mind having to maintain full corporate formalities, including, but not limited to, holding annual meetings and maintaining written meeting minutes in compliance with California Corporations Code requirements.

So what is the bottom line on C Corporations?

A C Corporation is usually best for the business owner with big plans, and who doesn't mind the additional formalities required by the California Corporations Code. A C Corporation can go public, while a Close Corporation or LLC cannot be taken public (although these latter may be converted to a C Corporation if you decide to go public at a later date).

Our California Standard Corporation incorporation process includes:

1. Checking to make sure your selected business name is available;
2. Completely preparing all of the incorporation documents, including the Articles of Incorporation, Bylaws, First Organizational Meeting Minutes, Stock Certificates with legends, Notice of Transaction and Statement of Information;
3. Filing the Articles of Incorporation with the California Secretary of State;
4. Obtaining your Federal Employer Identification Number (FEIN);
5. Supplying your Corporate Kit which includes a three ring “Minute Book” binder with appropriate tabs for your corporate documents and your corporate seal; and
6. One year of California Corporation Company's Registered Agent for Service of Process service.

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