California is home to countless corporations of all sizes, including dozens on the Fortune 500 list of top enterprises. Considering the high numbers, you might think it would be easy to incorporate a business in this state. However, that is not always the case. The process is complex and tedious, and it can be confusing even for seasoned executives. That is why corporate founders generally turn to an expert consultant, such as the financial professionals at Whyte & Associates, Inc in Rancho Cucamonga for assistance with business incorporation.
Three common mistakes to avoid when incorporating
All too often, entrepreneurs are simply in a hurry to make it through the incorporation process and move on to bigger and better things, making little details seem irrelevant. Unfortunately, that inattention to detail can come back to haunt you, in the way of delays, unforeseen expenses, and even inhibiting the growth potential that you seek. Here are a few of the most common mistakes you can easily avoid:
- Missing details in the Articles of Incorporation – This is an important document that defines your corporation. If it is not accurate and complete, you could delay the incorporation process, or incur legal fees to revise it in future.
- Incomplete shareholder’s agreement – This is a contract that details the obligations and rights of your shareholders. If done right, it can help you avoid conflict, save money, and streamline proceedings in future. However, vague wording or omission of clauses such as conflict resolution can render it virtually useless.
- Sloppy bylaws – Your bylaws are not a business plan or operating manual that you can selectively follow. They are a legally binding set of internal corporate rules. While they can be amended, the process can be difficult. Do not take the drafting of bylaws lightly.
We are here to help
The above are just a few examples of the many missteps that you can avoid by hiring a consultant from Whyte & Associates, Inc to assist with business incorporation. Call us at (909) 575-0080.
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