Importance of incorporating in California
Incorporating your business is important for many reasons and one of the most important reasons is for limited liability protection. Liability protection is the idea of providing a distinction between business and personal assets. All incorporations formed with the California Secretary of State will have limited liability protection as long as the shareholders keep the business in good standing. There are many great advantages of incorporating a business, such as the ability to grow the business to an unlimited size.
In most cases, filing in the state that you do business in is probably the best choice. Do not look at initial start up costs in deciding what state to file in. In the long run, choosing a state because it is cheaper may cost you more in taxes. Consulting an accountant will help to make the decision easier.
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