• Must register with the California Secretary of State before conducting business operations and file appropriate paperwork.
• Must create bylaws (e.g., how the corporation will operate) that cover items such as stockholder meetings, director meetings, number of officers, and their responsibilities.
• If formed as a corporation, the owners of the corporation are not liable for the losses of the businesses and creditors may only look to the corporation and the business assets for payment.
• A separate bank account and separate records are required.
• Owners have ultimate control of the corporation; but must elect directors who in turn elect officers for the company. The directors make the major decisions, while the officers make the day-to-day decisions.
• The life of the corporation is perpetual in nature.
Please contact Legal Support Center if you need help to start your businesss.