Establishing and Maintaining a Corporation with LA County Attorney’s Help

Corporate law covers all issues that pertain to the regulation and formation of corporations. These corporations are recognized as a separate entity that possess its own liabilities, privileges, are rights that are not the same from those of its members. Various corporations are found all over LA County, along with other areas in California, which possess different rights and privileges including the following:

• Right in hiring people

• Right in undergoing agreements that are contractual with other parties

• Right in holding assets which are not from its members

• The capability in filing a lawsuit

• Right in both adopting and drafting by-laws that will serve as a guide for all eternal affairs

However, establishing or forming a corporation may not be easy due to the complex issues that surround it. People who want to form this kind of business structure should acquire the help of corporate law attorneys so that they will have proper help in every step that needs to be done.

Steps in Creating a Corporation

If ever you decided to for or create your own corporation, there are steps that you need to do in order for you to achieve your goal. These steps are:

1. choosing a business that that is not yet used by other corporations and also conforms to your state’s corporation rules

2. designating the people who will become the first corporation leaders

3. filing a formal paper and paying a fee which will depend in the state wherein you decided to form the corporation

4. making or creating your very own by-laws in wherein your corporation’s operating rules are noted

5. giving stock certificates to the first owners of the corporation

6. getting any permits or licenses that you are required to have in running the business

Advantages and Disadvantages of Creating and Having a Corporation

A corporation, just like other business structures, has its own advantages and disadvantages. This means that those who are involved in it can enjoy the perks it offers but also face problems while handling it.

Advantages

• Employer/Owner- People who both own at the same time work in it are entitled for reimbursement or deduction on their specific expenses including life and health insurance, among others.

• Continuous existence- A corporation will continue to exist until the time its shareholders opted to close it or merge it with another business.

• Operational structure- A corporation has its own management structure.

• Tempting investment-A corporation’s structure makes it tempting to different investors.

• Limited liability- Limited liability is one of the main reasons why a corporation is chosen as a business structure. A corporation puts a limit when it comes to the liability that is given to its owners. Its shareholders have a limited liability for the corporation’s debts because the corporation itself is viewed as a separate legal entity.

Disadvantages

• Fees- In maintaining or forming a corporation, there are various fees that should be paid.

• Paper works- There are plenty of paper works needed in this kind of business structure. Some of the paper works that should be compiled include tax returns and reports, and bank records, among others.

Seeking Legal Help

If you have issues related to forming or maintaining a corporation, there are LA County attorneys who can help you. Seeking and acquiring the help of these professionals can greatly help you because they have vast knowledge of your rights, which are provided by the corporate law.