Forming a Corporation in California Quickly
You want to know how screwed up the state of California is? Well, small businesses (those small businesses we all need and want to start creating jobs) now have to wait as long as two months to start business because that's how long the Secretary of State takes to process incorporation paperwork. (Many other states, by the way, process the incorporation paperwork in a day or two.) Fortunately, you can slightly expedite the process of forming a California corporation by using half a dozen simple tips:
Tip #1: Plan Ahead
A first tip? Plan ahead so you don't get into the actual setup process and then have to stop to make decisions. And plan ahead so you'll complete your steps in the process quickly and early.
The notion that planning ahead saves time sounds, maybe, like something your mother would say. But planning ahead so you will have already decided which names and alternative names you'll use and so you know exactly how the ownership structure will work will minimize unplanned delays that can easily occur once the setup process starts.
Tip #2: Do Your Own Name Search
The California Secretary of State provides tools you can use to search on already used corporation names at their web site:
http://www.sos.ca.gov/business
And you definitely should use these tools to check the availability of the name you want as soon as you know you'll form a corporation.
But don't only look at the state's website when you think about your corporation's new name. Google the name you want to use to see if someone else is already using the name in another state. And look to see if an appropriate domain name is available for the corporate name you choose. You may need a website for your business. And if that's the case, getting a good domain name is, practically speaking, just as important your corporation name.
Tip #3: Consider Do-it-yourself Incorporation
Here's a more controversial technique to more quickly incorporate in California--or any other state as well: Consider preparing the paperwork yourself. By preparing the articles yourself, you'll save at least several hours and probably several days of time.
Note that the actual form you submit to the California Secretary of State (which is available from the California website mentioned earlier) is very straightforward and only a single page. You simply enter the desired corporate name, the corporation's address, and contact information. By filling out the paperwork yourself, you avoid the "waiting in line" that's a big part of working with any paralegal service or law firm--including even the online paralegal services. And by filling out the paperwork yourself, you actually reduce the paperwork that you end up preparing because some extra paperwork is required when working with an attorney or paralegal.
Tip #4: File Your Articles of Incorporation In-person
California gives priority to articles of incorporation that are filed in person. Accordingly, you may want to make the extra effort to file your incorporation paperwork with one of the two state offices that accept corporate filings.
The Secretary of State's main office, located at 1500 11th Street in Sacramento, accepts your filings of articles of incorporation. (You can telephone the Sacramento office at (916) 657-5448 to check on the current office hours.)
The regional office of the Secretary of State, at 300 South Spring Street, Room 12513, Los Angeles, CA 90013, also accepts filings. (You can call the Los Angeles office at 213-897-3062 to check on current office hours.)
Tip: Most states, and California is currently an exception, allow you to file your articles of incorporation online at the Secretary of State's web site. It's inevitable that California will add this service in future--and online filing should also expedite processing. So check if the online service filing is available when you go to file your articles.
Tip #5: Obtain Your California Corporation's EIN Online
The Internal Revenue Service allows you to obtain your employer identification number online from the irs dot gov website. And you definitely want to use the online application. The online EIN application, which you use after California certifies your articles of incorporation, requires you to answer a couple of dozen simple questions.
Author and accountant Stephen L. Nelson was formerly an adjunct tax professor at Golden Gate University and is the author of QuickBooks for Dummies. Nelson is also the author of a new downloadable ebook, Forming a California Corporation
