OC Business Blog

A Benefit Corporation is one in which the purpose of the business is to create a benefit to the general public. This purpose is in addition to the purposes provided in Section 206 of the Corporations Code. Under that particular section, a corporation can be formed to serve any business activity not prohibited by law, other than Banking Law or Professional Corporation.

To form a Benefit Corporation, the Articles of Incorporation must include a statement with the following language, “This corporation is a benefit corporation.” Further, the Articles of Incorporation for a benefit corporation may identify one or more specific public benefits that shall be the purpose or purposes of the benefit corporation. The Articles of Incorporation must then be filed with the California Secretary of State and accompanied by a fee of $100.

For further information on business formations and more please contact the Costa Mesa Business Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

A Flexible Purpose Corporation is one in which the purpose of the business includes either (1) one or more charitable or public purpose activities that a nonprofit public benefit corporation is authorized to carry out; or (2) promoting positive or minimizing adverse short-term or long-term effects of, the corporation’s activities in its employees, suppliers, customers and creditors, community and society and the environment.

To form a flexible purpose corporation, you must draft and submit Articles of Incorporation to the California Secretary of State. This form is similar to the one that you would fill out for a stock corporation that does not necessarily fit into the form available on the Secretary of State’s website. Therefore, it is important to contact a business law attorney in that the attorney will need to draft up Articles of Incorporation specific to your entity and purpose. The filing fee for the Articles of Incorporation is $100.

For further information on business formations and more please contact the Fullerton Attorneys at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

Beginning on January 1, 2012, you can form a stock corporation (for profit) under two new subtypes in California. Such subtypes include a “flexible purpose corporation” and a “benefit corporation.” These new corporation subtypes allow you to organize your stock corporation so that it can pursue both economic as well as social objectives. In the past, a corporation could be formed either to pursue profitable endeavors or as a nonprofit corporation which must be operated solely to promote social and public benefit.

For further information on business formations and more please contact the Irvine Attorneys at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

In order to dissolve your business entity (whether foreign or domestic) in California, a form specific to your particular entity must be filed with the California Secretary of State. Because the California Secretary of State due to mistake, omissions and other common errors rejects many dissolution attempts, it is essential that you contact a business law attorney if you have made the decision to dissolve your particular business entity.

For further information regarding dissolving business entities and more please contact the California Lawyers at 714-665-8322. Call today for you free 60-minute consultation!

A raffle is a type of lottery where prizes are awarded to individuals who enter to win something of value. This is a game of chance in which a coupon or a stub is purchased. At least 90 percent of the gross receipts from raffle ticket sales must be used by eligible tax-exempt organization to benefit or support beneficial purposes in California. Under Penal Code section 320.5, groups are prohibited from awarding raffle prizes through the use of a gaming machine such as a slot machine. Further, although a raffle may be advertised on the Internet, a raffle cannot be conducted over the Internet.

You may only conduct a raffle to raise funds for your charitable organization if you have been approved for tax-exempt status in California for at least one year before operating the raffle. Such eligible organizations include charities and religious or other organizations that have been exempted from state taxation by the Franchise Tax Board.

For further information on business formations and more please contact the Affordable Tustin Business Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.