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Incorporation is the establishment of a legal identity for a company rather than as property owned by one or more persons. It affects the assets, liabilities, and tax status of the company, and how it is treated under the law. Each state has a specific procedure but all follow the same general rules.

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The first step to incorporate in California is to select a name for your company. If available, the name can be reserved with the California Secretary of State for 60 days. Incorporating protects the name from being used by another California Corporation. However, the name cannot infringe on a trademark or service mark. Once you have incorporated in California, you will need to protect the name from use by non-corporate entities by registering it as a trademark or service mark which is a separate process.

Small Business Incorporation - The Basics

Before you start the process for your business to become incorporated, you need to understand the all the pros and cons of small business incorporation, and then learn the basics of How To Become Incorporated.

Importantly, you must:

  • Decide if the Benefits of Incorporation outweigh the disadvantages and whether incorporation is right for your business

  • Choose the Type Of Incorporation best suited to your small business

  • Select the State of Incorporation for your business

Having decided that incorporation is the right move for you, the next stage of becoming incorporated is to make some fundamental decisions about how you are going to set up the business.

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12y ago

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