California ArticlesCalifornia Incorporation
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Glossary of Incorporation Terms
Incorporate or Incorporation - To form into
a legal corporation.
Corporation - An organized body, especially
a business, that has been granted a state charter recognizing
it as a separate legal
entity having its own rights, privileges, and liabilities distinct
from those of the individuals within the entity.
Legal Entity - An entity having under the law
rights and responsibilities and esp. the capacity to sue and
be sued.
Franchise Tax - A tax that is imposed by states
on corporations; it depends both on the net worth of the corporation
and on its
net income attributable to activities within the state.
Fictitious Business Name - The phrase "doing business as" (abbreviated
DBA or d/b/a) is a legal term, meaning that the name of the business
or operation does not include the legal name of its proprietor,
the names of all partners, or the official registered name of the
limited partnership or corporation that owns it.
Trademark - Legal protection for a word, name, symbol or device
which is used in trade with goods to indicate the source of the
goods and to distinguish them from the goods of others. A servicemark
is the same as a trademark except that it identifies and distinguishes
the source of a service rather than a product.
Registered Agent - A person who is designated
in the articles of incorporation/organization that will receive
service of process or other important documents from the
state. All corporations and LLCs must choose a person to act
as their
registered agent. There are no restrictions regarding who
can be a registered agent other than the person must be located
and available
at a physical street address within the state during normal
business hours. Non-Profit Corporation - An organization formed for the purpose
of serving a purpose of public or mutual benefit other than the
pursuit or accumulation of profits.
Income Tax - A tax on the net income of an individual or a business.
Corporate Bylaws - Stockholder-approved rules governing the conduct
of a business. Bylaws typically include rules concerning the election
of directors, selection of auditors, and amendment of existing
bylaws.
Articles of Incorporation - The document that a firm files with
state authorities when establishing a corporation. This document
contains the firm's name and address, the type and amount of stock
to be authorized and issued, the type of business activity, a delineation
of corporate powers, and other information.
S Corporation - A form of corporation, allowed by the IRS
for most companies with 75 or fewer shareholders, which enables
the company to enjoy the benefits of incorporation but be taxed
as if it were a partnership. also called Subchapter S Corporation.
C Corporation - A business which is a completely separate entity
from its owners, unlike a partnership.
Limited Liability Corporation - "LLC", A type of
company, authorized only in certain states, whose owners and managers
receive
the limited
liability and (usually) tax benefits of an S Corporation without
having to conform to the S corporation restrictions.
Federal Tax Identification Number - This is a number assigned to
a corporation or other business entity by the federal government
for tax purposes. Banks generally require a tax identification number
to open bank accounts. The federal tax identification number is also
known as the Employer Identification Number (EIN).
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