The income from corporations is taxed at both the individual and corporate levels, which means that corporations must pay taxes on the income of the individual's dividends and the corporation's total income, known as "double taxation."
Corporations are required to maintain corporate records. It is imperative to diligently maintain corporate records to offer the business's owners the limited liability benefits of a corporation. The corporation's debt financing may require a personal guarantee by the owners, thus omitting the owners' limited liability for the loan amount.
The registered agent primarily provides an address that is registered to act as a local contact for the Secretary of State and other government agencies and in receiving the service of legal papers and documents. The registered agent is the person in charge of receiving all tax notices, notices of lawsuits on your company, etc., and will forward them to the corporation.
It is a requirement by all states for corporations that are incorporated in their territory to have a registered agent. One state, which is New York, is an exception to this rule, though all corporations still must supply a physical address for contact. If your corporation exists in the same state that your officers reside in, it is permissible that one of these officers may act as the corporation's registered agent. However, many corporations often use a professional registered agent to keep separate from other corporate mail crucial documents from the state.
It is not necessary to hire a lawyer to incorporate. You may prepare and file the paperwork yourself to incorporate, or you may select the professional services of an incorporation firm, such as ours. By selecting CCA to handle all of your incorporating requirements, you will only need to fill in the order form, and our experienced staff will take care of all the rest of the details.
A corporation is allowed to incorporate in any state it chooses, even if that state is not the state of the business's particular office location. However, it is recommended for businesses to incorporate in their home state. Several considerations are involved in choosing the location, such as tax laws, the cost of incorporation, and the general laws of that state governing a corporation's liabilities and actions.
The most common corporate structure is the C corporation. This corporation is a legal entity that may include an unlimited number of shareholders and is separate from its owners. A distinct advantage of filing as a corporation is that the owners' personal liability for claims against the corporation is limited. This liability limit is based on the total sum of money invested in the corporation.
Also, a corporation existing as a separate entity has an unlimited life and can extend well past the lives of its owners. The C corporation is an entity with shares of stock representing ownership; therefore, financing a corporation by selling stock is more convenient than selling interests in other ownership forms such as a partnership.
Taxation is the disadvantage of a C corporation. Federal taxes on a corporation's income are paid twice: Once on the corporate level and again as income tax on the corporation's dividends, the corporation's form of income passes on to its shareholders. This method of taxation is called "double-taxation."
When incorporating, you can choose the S corporation, which is a taxation election. The popularity of the S corporation taxation status increased because of the Tax Reform Act of 1986. Small business owners often choose S corporations because many of the advantages of corporate structures, partnerships, and sole proprietorships are combined within this status.
S corporations are similar to the C corporations in their disadvantages and advantages. However, S corporations carry special tax provisions. In a standard C corporation, the federal government taxes profits at the corporate level. Then, as profits are distributed among the shareholders as dividends, the C corporation is again taxed on this income to the individual shareholder. When an S corporation status is selected, this corporation is not responsible for payment of any taxes on its profits; taxes are only paid when dividends are distributed to shareholders as personal income. Therefore, by selecting the S corporation status, business owners can bypass C corporation's heavy "double-taxation."
A close corporation which is also defined as a closely held corporation is a corporation in which (1) the stock of the corporation is not to be traded on a public exchange (NYSE, NASDAQ, etc.); (2) the number of its shareholders must be designated and usually cannot go beyond 30, and (3) particular limitations may be put on the transferring of stock. Small businesses can benefit significantly by being a close corporation.
Most states require a corporation to have one director, while other states require a corporation to obtain several officers (usually a President, Vice-President, Treasurer, and Secretary). Based on the state, the number of shareholders a corporation has will dictate its number of directors. Many states have a minimum requirement of three directors.
Most states usually require filing the company's Articles of Incorporation, the corporate filing fees, and all the initial franchise taxes. California Corporate Agents can assist you in the filing of all the paperwork necessary to incorporate.
Since 2002, CCA serves as a registered agent to over 9,000 businesses.
We are Section 1505 certified by the California Secretary of State as an official registered agent provider.
We will remind you of the annual reporting requirements and other important deadlines.
We provide our customers with exceptional services and unparalleled customer support. Check our report
Our registered agent fee is fixed at $50 per year - no price increases, ever.
If you are unsatisfied for any reason, we will refund our service fees.