Before you establish a business in the State of California, you should consult with a private attorney or tax advisor for advice about what type of business entity will meet your business needs, and what your legal obligations will be.
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A California corporation generally is a legal entity which exists separately from its owners.
While normally limiting the owners from personal liability, taxes are levied on the corporation as well as on the shareholders. The sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners.
Legal Counsel should be consulted regarding the variety of options available. To form a corporation in California, Articles of Incorporation must be filed with the California Secretary of State’s office.
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