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How Incorporating in California helps you?
Regardless of their size, all businesses can receive the following benefits from incorporating in California:
- Personal asset protection. Year after year newspaper and television headlines recap countless stories of business owners who have lost everything due to personal liability in running unincorporated businesses. In a properly structured and managed California LLC or corporation, owners are allowed to separate and protect their personal assets from liability for business debts and obligations.
- Additional credibility. Adding "Inc." or "LLC." to your business name can add instant authority as consumers, vendors alike prefer to do business with an incorporated company.
- Name protection. By incorporating in California, in most states, other businesses may not file your exact corporate name in their state.
- Perpetual existence. When you incorporate in California, California Corporations continue to exist, even if ownership or management changes whereas sole proprietorships and partnerships terminate when an owner dies or leaves the business.
- Tax flexibility. By incorporating in California, a corporation can avoid double taxation of corporate profits and dividends (e.g., corporate tax and personal tax by shareholders) by electing Subchapter S tax status.
- Deductible expenses. Corporations incorporated in California may deduct normal business expenses, like salaries, before allocating income to owners.
[I'm Ready to Incorporate in California]
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KLEIN LAW CORPORATION • ATTORNEYS AT LAW • 15615 Alton Parkway, Suite 175, Irvine, CA 92618 • 949.453.7979
© 2012 Klein Law Corporation. All rights reserved.