Registering your new business is easy nowadays. When you decide to incorporate in any state, you will find on the Web many companies that offer business registration assistance services. Whether you wish to incorporate in Illinois or incorporate in Texas, the procedures are similar to those followed when you incorporate in California.
The first step in the process to incorporate in California is to have your corporate name approved by the California Secretary of State. Approval by the secretary of state is also required if you incorporate in Illinois or when incorporating in Texas.
When you incorporate in California, the law will not require you to affix such words as corporation, incorporated or limited to your business name – unless it contains the name of a person. You have the option, however, to use one if you want the rest of your market know that your business is incorporated.
For your own protection, you should not use the corporate name you filed with the secretary of state until you have obtained approval. The act of filing that corporate name does not guarantee to you the absolute right to use it. It is possible that an unincorporated business is already using it as a trade name, a trademark or service mark.
The office of the secretary of state will conduct a name search to make sure that the corporate name you want will be unique. That name should not be exactly the same as an existing name on file; it shouldn’t even sound similar to anything that is already in the records. In that file, you will find the names of existing corporations qualified to do business in California.
When you incorporate in any state, you must determine the business structure you want, whether it will be a corporation or a limited liability company. If you will register as a corporation, you have the option of being a regular corporation or a corporation that elects special tax status. The advantages and disadvantages with respect to your own personal objectives vary with each structure. Certainly, there are tax implications and organizational flexibilities you should consider.
Once you are registered, you proceed to get your tax and employer identification documents from the various federal and state agencies. There are also licenses and permits that you will have to secure. In California, the various state agencies run small business fairs, where you get assistance on licenses, permits and tax assessments.
Having gone through the process to incorporate in California, you can now set up shop and get going with your business.
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