- What is a Corporation?
- A corporation is, generally, a business entity that is given many of the same legal rights and benefits as a person, but is a separate legal entity from the owner. A corporation offers a professional stature, a limitation of liability, certain tax benefits and the flexibility of having multiple owners (known as shareholders).
- What types of fees or taxes are corporations subject to?
- In California, the annual franchise tax is payable to the state Franchise Tax Board and is a minimum tax of 8.84% (for a C-Corp) or 1.5% (for an S-Corp) of the corporation's net income or $800, whichever is more. This tax fee is waived during the first year of business for newly formed corporations. Thereafter, annual taxes are due and payable by the 15th day of the 4th month after the beginning of the corporations' taxable year (fiscal year) or April 1 (calendar year).
- What sort of business name protections does a corporation offer?
- Forming your business as a corporation provides your business name the protection afforded by registering your business name with the State. The Secretary of State will not allow other businesses that are too similar in name to be filed.
- What are Bylaws and why are they important?
- Think of Bylaws as your instruction manual for the operation of the corporation. The written document includes, generally, operating procedures for electing officers, issuing stock, holding meetings and other formalities of a corporation.