For a small business owner, business formation is a crucial decision. If you decide that incorporating will be best for your San Diego small business, how can you ensure you handle the process correctly? Here are five crucial steps to incorporating your small business in southern California.
- Choose your business name – Fortunately, the California government has a great site to help you search and ensure the desired name isn’t already taken. Once you reserve the name, you have 60 days, so don’t waste time continuing the process.
- Select your incorporation type – Most small business owners are going to choose the LLC formation. However, there may be reasons that a C corporation or S corporation is better suited to your needs.
- Hire a small business attorney who specializes in business formations – You may even want to move this to step one if you are not comfortable taking the first two steps on your own. But now it is time to file articles of incorporation, which you really don’t want to attempt on your own.
- Pay the $100 fee to file – Depending on the structuring of your corporation, there may be some other smaller fees as well.
- Acquire the permits and licenses you need to operate a business in California – There are a lot of them, and if you previously owned a business in another state, you may be surprised by how many you need depending on what your business does.