Mark Bole <makbo[at]pacbell.net> wrote:
- quote -

Good advice. Each entity type has its advantages and
disadvantages, so you need to be careful.

- quote -

They also charge the same minimum franchise tax for
corporations and limited partnerships. But with LLC's there's
an additional gross receipts tax when you take in more than
$250,000.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"anna" <annabaum100[at]yahoo.com> wrote:

- quote -

Depending on what city she's in, the fastest thing to do would
be to go here to get a sample of what's required by California
for Articles of Incorporation:
http://www.ss.ca.gov/business/ucc/ra_9_ucc-1.pdf

Write them up and hand carry them into one of the regional
offices. It can also be filed by mail in Sacramento. The
webpage above gives instructions. If she gets it there in
the morning, she may well have her corporation within a few
hours.

Then she will have a filed, legal corporation. There are
still some internal documents to create, and a couple of
other documents still required to be filed with the state
over the next 90 days.

So pick up the Nolo Press book increating your own Cal
corporation, and it should give the additional information
required.

- quote -

As an attorney who forms corporations, my advice is for her to
be careful whatever she does. I have seen even lawyers who
really don't know what they're doing, charge $1500 for doing no
more than filing the articles of incorporation referred to above.

The on-line sites aren't going to do any more than getting the
Nolo Press book will, but will charge 30 times more.

- quote -

Nah, it's easy. The only thing you have to know that's at all
tricky is that you have to file a document called Notice of
Issuance of Shares with the Department of Corporations. It
claims the exemption from the securities laws requirements for
issuing shares.

- quote -

The trickiest thing up front is to find a corporate name
that's not too similar to another one. Because if the
Secretary of State's office thinks it's too close, they won't
file the Articles.

So go here to check on corporations with similar names, and
pick one that's different enough not to be confused with
another one that's already there:
http://kepler.ss.ca.gov/list.html

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

anna wrote:

- quote -

My experience was that first I needed to study the various
types of business entities in California:

http://www.ss.ca.gov/business/filings.htm

Then I decided that I would either form an LLC (using on-line
service) or remain a sole proprietor. Your friend's overall
situation (history and size of the business) should be assessed
before determining that incorporation is worth the cost.

Once I saw that CA charges some $800/year franchise tax for LLC
(apparently much higher than most other states), I decided to
remain sole proprietor until my part-time business became
significantly more prosperous.

-Mark Bole

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

My friend is thinking about incorporating using an online outfit.

(She is in a hurry)

She is looking for just standard / basic incorporation.

Has any one had any experience with such companies offering
online incorporation ?

or should she go with an attorney ?

Which online company has the best reputation, best service for
incorporation? Any company that one should avoid?

Is the section about shares tricky ?

Should one pay particular attention to any section....?
(where perhaps a lot of folks make mistakes?)

Pls let me know any experiences....

Thanks

Anna

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >