CALIFORNIA CORPORATIONS

Incorporating a business in California offers a number of advantages that aid in the protection of both assets and privacy.

A California corporation will protect one from personal liability. A single individual can hold all offices including: Director, Shareholder, President, Secretary, and Treasurer. Incorporating in California can allow one to take advantage of tax deductible benefits such as health, accident, disability insurance, life insurance, and medical reimbursement plans. Corporations that have fewer than 75 shareholders can elect for S corporation status which allows for the profits to flow through the company and directly to the shareholders of the corporation wihout being taxed.

The benefits of a California corporation include:

• Personal liability protection
• Stockholders names not public
• Availability of corporate retirement plans
• Corporate fringe benefits
• Unending corporation existence
• Tax benefits
• Possible S corporation status
• A single person can hold all offices

Legal Alliance Group's fees for a California Corporation are $975.00 inclusive.

       CALIFORNIA LIMITED LIABILITY COMPANY

A Limited Liability Company is a less formal business entity versus a Corporation. Where a Corporation has mandatory meetings, such as annual shareholder meetings, annual board of director meetings, etc., a LLC does not have these requirements yet still offers personal liability protections to the members of the LLC.

The LLC entity is taxed as a partnership rather than a corporation. Because of this, an LLC is not subject to corporate income tax. Income tax is only taxed as personal income when you receive income or assets from the LLC.

The LLC protects the personal assets of the members and the officers of the LLC from creditors. The transfer of shares of an LLC can be greatly restricted by the Operating Agreement of the company. Even should a creditor obtain a membership interest in the LLC, they would only be entitled to their share of profits and would not become a voting member of the LLC unless the board voted unamiously. This provides members greater control over both present and future management of the LLC. The benefits of forming an LLC begin immediately upon formation and registration with the Secretary of State.

Advantages of a Limited Liability Company include:

• Asset protection
• Avoidance of double taxation
• Limited liability of officer's personal assets
• Reduced paperwork - no requirement to prepare annual company minutes
• Benefits begin immediately
• Continuity for life

Legal Alliance Group's fees for a California Limited Liability Comapny are $950.00 inclusive.