Corporate structure may be advantageous because it allows capital to be raised more easily through the sale of stocks or bonds and can continue to function even without key individuals. It also enables employees to participate in various types of insurance and profit-sharing plans. Costs to incorporate vary from state to state. Contact the Secretary of State for more information. A special type of corporation, an S corporation, allows owners to overcome the double tax and shareholders to offset business losses with personal income.
S corporations are subject to an annual surcharge.
California Corportations Code FREE and low-cost assistance for small businesses is available from your local Small Business Development Center . This document was prepared by the San Joaquin Delta College Small Business Development Center .