For a number of sound reasons, it is quite natural why a California business entrepreneur or multiple partners of a fledgling business look to the benefits that incorporating their company can bring.

And those are many.

For starters, and as noted in an online overview of small business incorporation, “one of the biggest draws of deciding to incorporate … is the limited personal liability that comes along with this decision.”

It is hard to overestimate just how critically important it can be for business principals to lawfully shield themselves from creditors and others who claim a debt is owed them by a company. In the absence of incorporation, of course, a creditor can legally proceed against business owners for satisfaction of a debt.

Incorporating fundamentally changes that, with a corporation operating as a stand-alone entity responsible for any debt incurred.

There are of course some limited exceptions to that, which a proven business organization attorney can address and help a client/business owner guard against.

An experienced attorney can also centrally assist would-be incorporators with all other key aspects relating to corporate formation and the retention of lawful corporate status following incorporation.

There is much to think about.

Proper filings and essential documentation must be timely attended to, for instance, with a special focus being placed upon articles of incorporation and an entity’s governing bylaws.

Additionally, certain actions must be taken in order to lawfully remain a corporation, such as the holding of annual meetings, the retention of certain records, the avoidance of fund commingling between corporate and privately held accounts and due completion of a corporate tax return.

An established commercial lawyer commanding experience in small business incorporation and related affairs can answer questions and provide sound and timely guidance in this important area of business law.

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