Formation of Law Corporations in California: A Step-by-Step Guide

Forming a law corporation in California is a structured process that requires compliance with specific rules set forth by both the California Secretary of State and the State Bar of California. Unlike a traditional business corporation, a law corporation is subject to additional requirements to ensure that it operates within the professional and ethical standards governing the legal profession.

Why Form a Law Corporation?

A law corporation offers several benefits to practicing attorneys, including liability protection, potential tax advantages, and the ability to attract and retain talented legal professionals through stock ownership. However, to enjoy these benefits, it’s crucial to follow the correct procedures for forming and maintaining your law corporation.

Key Steps in Forming a Law Corporation in California

1. File Articles of Incorporation with the California Secretary of State

The first step in forming a law corporation is to file the Articles of Incorporation with the California Secretary of State. This document must include the corporation’s name, which must comply with specific naming requirements, and the corporation’s purpose, which is typically stated as practicing law in California.

The name of the law corporation must adhere to certain requirements including and not limited to the following:

1. 1. It must include the words “Law Corporation” or “Professional Corporation.”
   2. It must not be misleading or imply a connection with any government agency or entity.
   3. It must be distinguishable from the names of other registered entities and business names on file with the Secretary of State.

Our firm will assist you in preparing and filing the Articles of Incorporation to ensure that all necessary information is included and that the document complies with California law.

2. Register with the State Bar of California

After filing the Articles of Incorporation, the next step is to register your law corporation with the State Bar of California. This involves completing the Application for Issuance of a Certificate of Registration as a Law Corporation. The application must include supporting documents, such as the corporation’s bylaws, a list of the shareholders, directors, and officers, and proof of compliance with the State Bar’s rules and regulations.

The name of the law corporation must match the name registered with the Secretary of State and must be approved by the State Bar. Practicing law under a name that has not been registered and approved is prohibited.

Our firm will help you complete and file the necessary application and supporting documents, ensuring that your law corporation meets all the State Bar’s requirements.

3. Ongoing Compliance and Maintenance

Forming your law corporation is just the beginning. To maintain good standing with the State Bar and the Secretary of State, your corporation must comply with ongoing requirements, including annual reporting, maintaining appropriate insurance coverage, and ensuring that all shareholders are licensed attorneys.

After your law corporation is established, our firm can also assist with ongoing maintenance, including making necessary updates to corporate documents, filing annual reports, and addressing any compliance issues that may arise.

Conclusion

Forming a law corporation in California is a critical step for attorneys looking to structure their practice in a way that maximizes legal and financial benefits. By working with our attorneys who understand the intricacies of the process, you can ensure that your law corporation is properly formed, registered, and maintained in compliance with applicable laws.

Our firm is here to guide you through every step of the process, from filing the Articles of Incorporation to completing the necessary registration with the State Bar of California. Contact us today to learn more about how we can assist you in forming your law corporation and ensuring its long-term success.