Question about incorporating (CA) - Posted by Dan

Real Estate Investing
#1

Posted by DavidV on March 02, 2001 at 15:38:45:

Seems a little high for me, but i’m not in California. You might want to look into Bronchick’s course on the subject here, its not very difficult. He spells out what all you need to do to “maintain” the corporation in pretty simple terms. I think most states go through the secretary of state to set one up, but California is always different somehow. :slight_smile: Aside from the cost of Bronchick’s course it cost me $50. Find out who you go through to set one up and they may have a web site with all the info you need. Good Luck.

#2

Question about incorporating (CA) - Posted by Dan

Posted by Dan on March 02, 2001 at 10:05:03:

A lawyer quoted me a price of $2000 to set up a Calif. corporation for doing flips and another $2000 to set up an LLC for holding long term rentals. Told me that the cheap companies like the Company Corporation, etc., do shoddy work and basically tried to frighten that doing business with the low-cost corporation “mills” could be dangerous.

Aside from the obvious self interest of his views, is there any truth to them? Anyone have any wisdom here? Anyone ever had a problem with the Company Corp. or others like it?

Thanks in advance…
Dan

#3

Re: Question about incorporating (CA) - Posted by don, sdca

Posted by don, sdca on March 06, 2001 at 24:43:21:

Dan,

Stacy is right aboout the filing fee and that the costs quote from your lawyer seems high (though within the typical range).

BUT remember CA Corps. pay a minimum Franchise Tax of $400 per year for the 1st year (often $800) and then $800 per year after that (follow the cite that Stacy provided)!

don, sdca

#4

Re: How’s $100 sound? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on March 02, 2001 at 17:06:40:

Major rip off, seems to me. It only costs $100 for a Corp, and $70 for a LLC in California. I’ve included a link to the California incorporation schedule of fees:

http://www.ss.ca.gov/business/corp/corp_formsfees.htm

Even if you wanted to buy Bronchick’s course, and pay the California expedited filing fee ($350), you’d still be at about 25% of the cost of the high priced lawyer. And, you’d actually understand how to RUN your corporation, instead of just being handed a fancy corporate seal and minutes binder and a pat on the back.

Stacy