Legal Question in Business Law in California

Many non-lawyer businesspersons write and file their own incorporation documents. Let me give you a few tips:

1. One does not start an s corporation. One starts an ordinary for-profit business corporation, THEN applies to the IRS for "s" status for federal income taxation purposes.

2. It's much easier to get "s" status if you file rather promptly after forming the corporation.

3. Before forming a California corporation, I'd advise getting one or more of the paperback self-help guides to forming and operating a corporation, and be sure to get one that is based on California law. One publisher of do-it-yourself books that I often recommend is Nolp Press.

4. If the business will operate in or be managed from California, I'd recommend using a California corporation, at least until it gets big and rich enough to be able to afford paying taxes and hiring accountants and lawyers in multiple states.

5. Forming the corporation is only the tip of the iceberg. The Articles of Incorporation can fit on a half sheet of paper. That plus you filing fee will get you incorporated. In addition, however, you'll need bylaws and a viable business, and probably a host of other contracts, forms and agreements.

Having said all that, you'll probably want to line up both an attorney and an accountant who can advise and assist as needed.........also an insurance agent with business experience.

I completely agree with the previous attorney. Filing the initial papers with the state can be done by yourself, but that is just the start. As he mentioned, you will need bylaws, contract forms and agreements, and potentially terms and conditions (for online business). If you have any questions, feel free to give me a call or an attorney in your area.

Kind regards,

Jim Betinol

[email protected]