Legal Question in Business Law in California

Re: division

by proper documentation of the decision and details by the BOD and shareholders, compliance with corporate commissioner, IRS and FTB filing rules, and local, state and federal regulations and filings requirements, business licenses, trademark and copyright filings, etc. The facts determine how much of that has to be done. Consult with counsel and tax advisors. Feel free to contact me if you need legal help.

Re: division

A division of a corporation is an internal mechanism to separately track a portion of the corporation's business -- it is not a separate entity. So how the division is "formed" is a matter of what you want the division to be. Documentation may also depend on (a) whether the division will do business under a separate fictitious business name, and (b) whether the corporation is public. Also, depending on what you want this division to do, and whether it will incur significant liabilities, you may also want to consider forming a subsidiary corporation rather than a division.

Re: division

This is largely an accounting and management exercise, not a legal matter. Think of a division of a corporation as being like a department in a store.