I wish the answer to this were more existential, and thus more interesting. Alas, it’s as simple as this: a corporation becomes a corporation when you duly file Articles of Incorporation, also know as “charter documents”, with the state official authorized to recognize and process such filings. In California, that’s the Secretary of State. In […]
Corporations provide liability protection for its owners, as well as its officers and directors, with some exceptions. So, there’s that. Insurance covers some things, but not all. And sometimes a corporation won’t help you… for example, if you’re a lawyer and you commit malpractice. That’s on you, individually – corporation or not. Tax may also […]
This is about as arcane as it gets… “Articles”. Be that as it may, we’re stuck with it as a word in corporate lingo. This is the document which provides the state, and therefore the public, with the initial information needed to bring the corporation into existence. It must follow certain state requirements minimally, and […]
First things first: the question really is whether an entity is going to do you any good at all. From a liability perspective, keep in mind that anything you do is your personal problem; putting your medical practice into a corporation won’t shield you from your own malpractice. But it could, for example, shield you […]
Should you? Probably not. Are you required to? Maybe. It depends on the type of profession you’re in. Lawyers, for example, are required to be in professional corporations (“PC”). Forming as a PC may require additional restrictions in your bylaws, for example concerning ownership. So if you don’t need to, generally you shouldn’t. But you […]