Orange County Incorporate, Business Formation Attorneys & Lawyers

Orange County Lawyers Corporations LLCs Most people who are interested in incorporating or Business Formation lawyers forming a corporation are attracted to corporations' protection against personal liability for business debts. Did you know that an LLC provides the same level of protection (called "limited liability")? If both business structures provide limited liability, how are the two structures different? And which is better? While there's no one answer that applies to every business, some general principles may help you decide.

STANDARD CORPORATION, also called a C corporation, is a very common business structure. Corporations are separate legal entities that are owned by shareholders. Conversely, sole proprietorships and partnerships are not separate legal entities. They are considered to be the same as the owner(s). In order to form a corporation, the appropriate formation documents (usually called the articles of incorporation or a certificate of incorporation) must be filed with the state.

Some other advantages of a Business Formation attorneys, corporation include: # The ownership of the corporation is easily transferable through the sale of stock. # Incorporating may establish credibility for a new business with potential customers, employees, vendors, and partners. # Corporations have unlimited life extending beyond the illness or death of owners. # Tax benefits such as insurance, travel, and qualified retirement plans are deductible. # Additional capital can be easily raised through the sale of stock (shares) in the corporation.

* Preparation and filing the articles of formation for your new company. * Name search/reservation. * One year of our Registered Agent service. * One year of our Compliance Watch Service. * Overnight delivery, once we receive your documents from the state. * Expedited handling/walk-in service * Personalized corporate kit, including corporate seal, stock certificates, stock transfer ledger and sample bylaws forms. * Tax ID form, S-Corp election form and tax classification. * A three-book legal reference library. * The Essential Corporation Handbook or Your Limited Liability Company - An Operating Manual. # Should I form a limited liability company or a corporation? Get help with our Online Incorporation Workshop. # Is incorporation best for me? Receive our Incorporation Workbook. # How can I run my business successfully? Sign up for our quarterly e-newsletter. # How do I protect my business name? Separate Legal Entity Status A corporation Business Formation lawyer Orange County is a separate legal entity existing under authority granted by state law. It has its own identity separate and apart from its shareholders/owners. Broad Range of Powers As a separate legal entity, a corporation has the power to act in any way permitted by law and by its own corporate charter. For example, a corporation can enter into contracts, buy and sell both real and personal property, sue and be sued, and can even be responsible for breaking the law (i.e. committing a crime). Small Claims Court In most jurisdictions, any officer or director or employee can appear in small claims court on behalf of the corporation. Separate Liability for Corporate Debts As a separate legal entity, a corporation is responsible for its own debts. Normally, shareholders, directors, and officers are not responsible for corporate liabilities. If the corporation suffers losses, the corporation itself must bear those losses to the extent of its own resources, and not the personal assets of the individual shareholders. In effect, however, shareholders indirectly bear these losses by a decline in the value of the stock they hold in the corporation. Note however, that shareholders, directors, and/or officers may be held liable for the debts of the corporation where the court imposes "alter-ego liability" or where the individual has personally guaranteed the corporate debt. Perpetual Duration A corporation is capable of continuing indefinitely. Its existence is not affected by the death or incapacity of shareholders, directors, or officers of the corporation. Duration of Corporation Compared to LLC An LLC has a limited existence. Absent a contrary agreement, a limited liability company (LLC) is dissolved upon the death, withdrawal, or bankruptcy of a member unless the business is continued by unanimous vote of the remaining members. Although the operating agreement can be drafted to avoid such a result, the life of the LLC is still limited to the termination date in the Articles of Organization.