How Much Does it Cost to Start a California Corporation?


One of the most common concerns from prospective California corporate owners is regarding the costs of incorporation. While this may seem like a fairly straightforward question, the answer is anything but simple. Every corporation is different with its own business goals and objectives. Many different factors should be considered when starting your corporation to ensure your business is on the right path to success. The best way to get an idea of the specific costs you may face will be to have an experienced CA business attorney review your corporate business plans to ensure you are operating in the best structure, and examine your particular needs to best protect your corporation. There are many non-attorney companies on the internet advising business owners on how to choose an entity structure for their business.

Startup Company Counsel is comprised of a dedicated team of experienced business attorney’s and offers flat rate packages because we know cost is a very important factor for a company that is just launching. We believe laying the right framework is critical and should be done correctly. Startup Company Counsel often needs to correct formation documents for business owners whom tried to incorporate on their own and made many legal mistakes. Those errors often cost more than hiring an experienced startup lawyer. If the company is not set up properly a business partner may end up in court to dispute ownership interest, intellectually property ownership, and other critical legal provisions that should have been addressed in the very beginning. Hiring an attorney to correctly form your new corporation will save you time and money, thus allowing you to focus on growing your business.

Costs of Filing for Incorporation

In order to officially form your corporation, you must file certain documents with the Secretary of State in California. While the state of California charges a filing fee to file the Articles of Incorporation for your business, you should consider the costs of drafting and preparing these Articles, as well as the costs of drafting corporate bylaws and any other operating agreements. Such documents should always be carefully drafted, negotiated, and reviewed by a skilled business lawyer to ensure they properly and thoroughly address the needs of your business operations.

In addition, the documents your corporation will require will depend on your ultimate goals for the business. For example, if you want to bring in investors or if you want to set up your company for a merger and acquisition transaction down the road, there will be specific concerns and contracts needed. An attorney can identify all of the unique needs of starting your corporation in a way that best addresses your plans for success.

It is also critical to remember the ongoing costs of operating a corporation, including filing regular Statements of Information, annual required meeting minutes and complying with all other corporate regulatory and tax requirements.

Discuss Starting Your Corporation with Our California Business Attorneys

At Startup Company Counsel, we work closely with all of our clients to ensure their corporation is started in the most cost-efficient manner possible while still making certain that all necessary legal protections are in place to preserve the future goals of your corporation. We can advise you regarding the potential costs of starting your specific business based on a close examination of your corporate needs, so please do not hesitate to call us at 408-441-7555 or fill out our contact form for more information today.

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