1. Select a Business Structure: Choosing the type of business structure you want is the first step in launching a business. A single proprietorship, partnership, limited liability company (LLC), or corporation are among the choices available in California.
2. Register Your Business Name: After choosing a business structure, the following step is to file a business name registration with the Secretary of State of California. This will prevent anyone else from using your company name.
3. Obtain permissions and licenses for your business from the city or county where it will be located. This step may be necessary depending on the type of business you want to establish. Find out what licenses and permits you require by contacting your local government.
It’s crucial to keep your personal and professional finances distinct, so open a corporate bank account. To manage your company’s funds, you can open a business bank account.
6. Submit Articles of Incorporation: The California Secretary of State must receive your Articles of Incorporation if you want to establish a corporation there. The organization and ownership of your corporation are described in this document.
7. Obtain a Certificate of Good Standing. This document demonstrates that your company complies with all state laws and requirements. When making a loan or partnership application, it is frequently necessary. A Certificate of Good Standing costs $9 and can be obtained in California within 5-7 business days.
For a business owner, filing articles of incorporation has many advantages. For starters, it offers the corporation’s owners limited liability protection. This indicates that the owners are not held personally accountable for the corporation’s debts and responsibilities. The second benefit is that it enables the corporation to issue stock, which can be used to raise money for the company. Finally, it provides the corporation with a legal framework and enables it to function independently of its owners. Do all businesses possess articles of association?
No, there aren’t articles of association for every business. Typically, corporations, which are distinct legal entities from their owners, employ articles of association. There may not be articles of association for other company structures, such as partnerships and sole proprietorships. They might, however, also include other documents that describe the organization and ownership of the company.