CORPORATE FORMATION PASADENA
Corporation Formation Comes Easy with Figco, Pasadena’s Premier Financial Consultants
Figueroa & Co. are Pasadena’s premier financial and tax consultants. We are passionate about providing our customers with the very best advice on all matters of financial issues. Our aim is to help your business expand and prosper.
A corporation can be defined as an organization or a business created by a number of individuals, but the rights and liabilities are separated from the individuals who are involved.
It might be an organization that is non-profit making, aimed at offering activities or services that benefit the public. It could be a municipal or community corporation, which runs a town or city; or the most common type, a private corporation, whose business is to make profits.
Legally, a corporation is not that much different from an individual, as it has similar obligations and rights. It is in a position to be able to purchase, sell and take ownership of property. It can take on contracts and leases and it can file lawsuits. And like any income earner, it is required to pay taxation. A corporation has to obey laws that apply to it as well as general laws. If laws are broken, it will be prosecuted and punished. The main benefit of a corporation is that it can last forever, even past the life span of its founder and any of its membership. All the owners are offered limited liability protection as well.
If you are considering setting up a corporation then you will need more than personal advice to set you on the right path. If you are centrally located in Pasadena, California, and where you intend to set up your corporation, then Figueroa & Co.’s professional financial and tax consultants will offer you the best advice that can be found anywhere when it comes to corporate formation. Figco is the envy of their competitors, as their knowledge is both exceptional and clear to understand. Whatever your financial requirements are, their advice will be personalized to suit your needs.
Company Formation and Limited Liability in Pasadena
If you are a shareholder in a corporation that does not have the capacity to fund its debts and as a consequence is sued by the creditors, any of the assets of that company can be taken away and then sold. You may lose what you have invested, but the creditors can’t grab any of your personally owned assets which could include your house, your car or cash in your bank accounts-a way of financing what they are owed.
However, there are often loopholes in any type of operation, so as a shareholder in a failed company you may not be as safe as you think. For example, if the business dealings of a corporation and shareholders are completely merged to the extent that they appear to be the same entity. A person taking out a lawsuit might find that a court can be convinced to “pierce the corporate veil” and demand the offending corporation accepts personal liability, or accountability, to the shareholders. Personal liability can be forced if the corporation has failed to comply with all the necessary legal formalities or has failed to maintain sufficient records.
The Process of Forming a Corporation
It is necessary to get a state charter if you wish to form a corporate formation.
You should follow these steps:
- Select the state you would like to use for your corporation. This is normally the state where most of the company’s business takes place and where the headquarters are situated. Those individuals who have done a considerable amount of research have a preference to incorporate in a state that has fewer regulations and does not impose a corporation tax. Currently, these are Wyoming, Delaware and Nevada.
- The next step is to select your officers. Some states demand that at least 2 or 3 parties have to create a business formation, but they don’t all have to be shareholders. In the early stages of formation you may wish to invite friends or even members of your family to take on the role as officers. Any corporation that operates with only one shareholder that person has complete control of the activities of the corporation. You alone will control the corporation’s activities.
Sometimes making business decisions is not necessarily that easy as there can be risk involved. By using the limited liability cover, it does add a bit more confidence to a businessperson’s ability to make decisions. However, sound business decisions made about the current values and projected values of your businesses are the main considerations before becoming incorporated. If you think your business has fantastic potential then use that potential while it is there. Economic climates wax and wane at the blink of an eye so business planning has to follow these cues. In other words, strike while iron is hot. There are plenty of experienced financial consultants who are only too willing to offer sound financial advice that often starts the ball rolling for many inexperienced people who reside in the business community.