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subject: Tips For Forming A California Corporation Quickly [print this page]


The state agency cost-cutting going on in California now means that California businesses and entrepreneurs need to wait for almost two months for forming a corporation in the California... One might be tempted to wonder how that can possibly make sense for the state given that the delay just means these new businesses delay paying taxes and wages. But rather than get all worked up, consider using the following five tips to more quickly incorporate a business in California.

Tip #1: Plan Ahead

A first tip? Plan ahead so the actual process of forming your California corporation goes smoothly and so you don't have to start and stop. And plan ahead so you'll complete your steps in the process quickly and early.

The notion that planning ahead saves time sounds, maybe, like something your mother would say. But planning ahead so you will have already decided which names and alternative names you'll use and so you know exactly how the ownership structure will work will minimize unplanned delays that can easily occur once the setup process starts.

Tip #2: Do Your Own Name Search

The California Secretary of State provides tools you can use to search on already used corporation names at their web site:

http://www.sos.ca.gov/business

And you definitely should use these tools to check the availability of the name you want as soon as you know you'll form a corporation.

But don't only look at the state's website when you think about your corporation's new name. Google the name you want to use to see if someone else is already using the name in another state. And look to see if an appropriate domain name is available for the corporate name you choose. You may need a website for your business. When that's the case, finding a great website name is just as critical as a great corporation name.

Tip #3: Consider Do-it-yourself Incorporation

Here's a more controversial technique to more quickly incorporate in California--or any other state as well: Consider preparing the paperwork yourself. By preparing the articles yourself, you'll save at least several hours and probably several days of time.

Note that the actual form you submit to the California Secretary of State (which is available from the California website mentioned earlier) is very straightforward and only a single page. You just input the corporate name, address, and contact person details into a simple, one-page preprinted form. By filling out the paperwork yourself, you avoid the "waiting in line" that's a big part of working with any paralegal service or law firm--including even the online paralegal services. And by filling out the paperwork yourself, you actually reduce the paperwork that you end up preparing because some extra paperwork is required when working with an attorney or paralegal.

Tip #4: File Your Articles of Incorporation In-person

California gives priority to articles of incorporation that are filed in person. Accordingly, you may want to make the extra effort to file your incorporation paperwork with one of the two state offices that accept corporate filings.

The main office of the Secretary of State, at 1500 11th Street, Sacramento, CA 95814, accepts filings of corporation articles. (The Sacramento office telephone number is 916-657-5448.)

The regional office of the Secretary of State, at 300 South Spring Street, Room 12513, Los Angeles, CA 90013, also accepts filings. (The Los Angeles office's telephone number is 213-897-3062.)

Tip: Most states, and California is currently an exception, allow you to file your articles of incorporation online at the Secretary of State's web site. It's inevitable that California will add this service in future--and online filing should also expedite processing. So check if the online service filing is available when you go to file your articles.

Tip #5: Obtain Your California Corporation's EIN Online

The Internal Revenue Service allows you to obtain your employer identification number online from the irs dot gov website. And you certainly want to apply online. The online application process, which you step through after California accepts your filed articles, requires you to answer a few questions and takes a few minutes.

by: Stephen Nelson




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