California Incorporation & Support Services
                                      Since 1996
                    888-341-0615

CORPORATION ORGANIZATION


 

What is Incorporation and what are the benefits? Incorporation is the establishment of a legal entity otherwise known as a Corporation. Corporations may enter into contracts, open financial accounts and is generally afforded rights and privileges similar to a person. Asset Protection and tax exposure reduction are the two primary reasons that people choose to incorporate, or organize as Limited Liability Companies (LLC) or a Limited Partnerships (Ltd. Partnership).

1- ASSET PROTECTION

One advantage of Incorporation is that it provides beneficial owners, known as the shareholders in a corporation or members in a LLC or Ltd. Partnership, the means to reduce their risk exposure. Shareholders are not personally liable for activities of the entity. This is referred to as the provision of Limited Liability.

As you are aware, in this litigation oriented society no one is immune from the threat of attachment of assets; whether it be through frivolous lawsuits or misguided judgments. Through incorporation, one may preserve their anonymity, as shareholder identities are protected in various jurisdictions. Incorporation provides the first level of asset protection that allows individuals to form business ventures, expand existing operations and secure accumulated wealth.

2- TAX EXPOSURE

The second main consideration is the effect on tax exposure. Corporate entities can typically lower their taxable income through the deduction of expense items involved with the operation of the entity. A professional tax accountant can provide guidance as to what is generally acceptable according to IRS guidelines.

3- NOMINEE DIRECTORS

Most jurisdictions require disclosure of the names and addresses of the president, secretary, treasurer and/or director(s) of the corporation. While being an officer or director does not explicitly imply ownership, you as the shareholder may not want to be publicly listed in connection with the corporation. Nominee Directors for corporations is imperative to the preservation of one's anonymity.

 

4- CONTINUITY OF EXISTENCE 

A corporation has perpetual existence and upon the death of a principal shareholder the business continues.

 

5- ABILITY TO RAISE CASH OR LIQUIDATE ONE PARTIES INTEREST

A Corporation can, by sale of shares of its stock, raise capital for operating expenses of expansion.

 

 

 

CAL FIRST HOLDINGS, INC. Corporation Order Form