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 Business Entity Formation

This chapter of California law governs how to incorporate and keep a corporation in good standing.

Starting and running a corporation requires compliance with these statutes to invoke and preserve limited liability protection.

California Corporations Code (CORP)
Titles, 1-10, Sec. 100 et seq.
Title, Article No., Section Range
California Corporations Code Titles 1-10 Titles 1-10
GENERAL PROVISIONS 
TITLE 1. CORPORATIONS100-14631
DIVISION 1. GENERAL CORPORATION LAW100-2319
CHAPTER 1. General Provisions and Definitions100-195
CHAPTER 2. Organization and Bylaws200-213
CHAPTER 3. Directors and Management300-318
CHAPTER 4. Shares and Share Certificates400-423
CHAPTER 5. Dividends and Reacquisitions of Shares500-511
CHAPTER 6. Shareholders’ Meetings and Consents600-605
CHAPTER 7. Voting of Shares700-711
CHAPTER 8. Shareholder Derivative Actions800
CHAPTER 9. Amendment of Articles900-911
CHAPTER 10. Sales of Assets1000-1002
CHAPTER 11. Merger1100-1113
CHAPTER 11.5. Conversions1150-1160
CHAPTER 12. Reorganizations1200-1203
CHAPTER 13. Dissenters’ Rights1300-1313
CHAPTER 14. Bankruptcy Reorganizations and Arrangements1400-1403
CHAPTER 15. Records and Reports1500-1512
CHAPTER 16. Rights of Inspection1600-1605
CHAPTER 17. Service of Process1700-1702
CHAPTER 18. Involuntary Dissolution1800-1809
CHAPTER 19. Voluntary Dissolution1900-1907
CHAPTER 20. General Provisions Relating to Dissolution2000-2011
CHAPTER 21. Foreign Corporations2100-2117.1
CHAPTER 22. Crimes and Penalties2200-2260
CHAPTER 22.5. Victims of Corporate Fraud Compensation Fund2280-2296
CHAPTER 23. Transition Provisions2300-2319
DIVISION 1.5. SOCIAL PURPOSE CORPORATIONS ACT2500-3503
CHAPTER 1. General Provisions and Definitions2500-2517
CHAPTER 2. Organization and Bylaws2600-2605
CHAPTER 3. Directors and Management2700-2702
CHAPTER 4. Shares and Share Certificates2800
CHAPTER 5. Shareholder Derivative Actions2900
CHAPTER 6. Amendment of Articles3000-3002
CHAPTER 7. Sales of Assets3100
CHAPTER 8. Merger3200-3203
CHAPTER 9. Conversions3300-3307
CHAPTER 10. Reorganizations3400-3401
CHAPTER 11. Records and Reports3500-3503
DIVISION 2. NONPROFIT CORPORATION LAW5000-10841
PART 1. GENERAL PROVISIONS AND DEFINITIONS GOVERNING PARTS 1 THROUGH 55002-5080
PART 2. NONPROFIT PUBLIC BENEFIT CORPORATIONS5110-6910
CHAPTER 1. Organization and Bylaws5110-5160
ARTICLE 1. Title and Purposes5110-5111
ARTICLE 2. Formation5120-5122.5
ARTICLE 3. Articles of Incorporation5130-5134
ARTICLE 4. Powers5140-5142
ARTICLE 5. Bylaws5150-5153
ARTICLE 6. Location and Inspection of Articles and Bylaws5160
CHAPTER 2. Directors and Management5210-5260
ARTICLE 1. General Provisions5210-5215
ARTICLE 2. Selection, Removal and Resignation of Directors5220-5227
ARTICLE 3. Standards of Conduct5230-5239
ARTICLE 4. Investments5240-5241
ARTICLE 5. Examination by Attorney General5250
ARTICLE 6. Compliance With Internal Revenue Code5260
CHAPTER 3. Members5310-5354
ARTICLE 1. Issuance of Memberships5310-5313
ARTICLE 2. Transfer of Memberships5320
ARTICLE 3. Types of Memberships5330-5332
ARTICLE 4. Termination of Memberships5340-5342
ARTICLE 5. Rights and Obligations of Members and Creditors5350-5354
CHAPTER 4. Distributions5410-5420
ARTICLE 1. Limitations5410
ARTICLE 2. Liability of Members5420
CHAPTER 5. Meetings and Voting5510-5527
ARTICLE 1. General Provisions5510-5517
ARTICLE 2. Additional Provisions Relating to Election of Directors5520-5527
CHAPTER 6. Voting of Memberships5610-5617
CHAPTER 7. Members’ Derivative Actions5710
CHAPTER 8. Amendment of Articles5810-5820
CHAPTER 9. Sales of Assets5910-5930
ARTICLE 1. General Provisions5910-5913
ARTICLE 2. Health Facilities5914-5930
CHAPTER 10. Mergers6010-6022
ARTICLE 1. Merger6010-6019.1
ARTICLE 2. Effect of Merger6020-6022
CHAPTER 11. Bankruptcy Reorganizations and Arrangements6110
CHAPTER 12. Required Filings by Corporation or Its Agent6210-6216
CHAPTER 13. Records, Reports, and Rights of Inspection6310-6338
ARTICLE 1. General Provisions6310-6313
ARTICLE 2. Required Records, Reports to Directors and Members6320-6325
ARTICLE 3. Rights of Inspection6330-6338
CHAPTER 14. Service of Process6410
CHAPTER 15. Involuntary Dissolution6510-6519
CHAPTER 16. Voluntary Dissolution6610-6618
CHAPTER 17. General Provisions Relating to Dissolution6710-6721
CHAPTER 18. Crimes and Penalties6810-6815
CHAPTER 19. Foreign Corporations6910
PART 3. NONPROFIT MUTUAL BENEFIT CORPORATIONS7110-8910
CHAPTER 1. Organization and Bylaws7110-7160
ARTICLE 1. Title and Purposes7110-7111
ARTICLE 2. Formation7120-7122.3
ARTICLE 3. Articles of Incorporation7130-7135
ARTICLE 4. Powers7140-7142
ARTICLE 5. Bylaws7150-7153
ARTICLE 6. Location and Inspection of Articles and Bylaws7160
CHAPTER 2. Directors and Management7210-7240
ARTICLE 1. General Provisions7210-7215
ARTICLE 2. Selection, Removal and Resignation of Directors7220-7225
ARTICLE 3. Standards of Conduct7230-7238
ARTICLE 4. Examination by Attorney General7240
CHAPTER 3. Members7310-7354
ARTICLE 1. Issuance of Memberships7310-7315
ARTICLE 2. Transfer of Memberships7320
ARTICLE 3. Types of Memberships7330-7333
ARTICLE 4. Termination of Memberships7340-7341
ARTICLE 5. Rights and Obligations of Members and Creditors7350-7354
CHAPTER 4. Distributions7410-7420
ARTICLE 1. Limitations7410-7414
ARTICLE 2. Liability of Members7420
CHAPTER 5. Meetings and Voting7510-7527
ARTICLE 1. General Provisions7510-7517
ARTICLE 2. Additional Provisions Relating to Election of Directors7520-7527
CHAPTER 6. Voting of Memberships7610-7616
CHAPTER 7. Members’ Derivative Actions7710
CHAPTER 8. Amendment of Articles7810-7820
CHAPTER 9. Sales of Assets7910-7914
CHAPTER 10. Mergers8010-8022
ARTICLE 1. Merger8010-8019.1
ARTICLE 2. Effect of Merger8020-8022
CHAPTER 11. Bankruptcy Reorganizations and Arrangements8110
CHAPTER 12. Required Filings by Corporation or Its Agent8210-8217
CHAPTER 13. Records, Reports, and Rights of Inspection8310-8338
ARTICLE 1. General Provisions8310-8313
ARTICLE 2. Required Records, Reports to Directors and Members8320-8325
ARTICLE 3. Rights of Inspection8330-8338
CHAPTER 14. Service of Process8410
CHAPTER 15. Involuntary Dissolution8510-8519
CHAPTER 16. Voluntary Dissolution8610-8618
CHAPTER 17. General Provisions Relating to Dissolution8710-8724
CHAPTER 18. Crimes and Penalties8810-8817
CHAPTER 19. Foreign Corporations8910
PART 4. NONPROFIT RELIGIOUS CORPORATIONS9110-9690
CHAPTER 1. Organization and Bylaws9110-9160
ARTICLE 1. Title and Purposes9110-9111
ARTICLE 2. Formation9120-9122
ARTICLE 3. Articles of Incorporation9130-9134
ARTICLE 4. Powers9140-9143
ARTICLE 5. Bylaws9150-9153
ARTICLE 6. Location and Inspection of Articles and Bylaws9160
CHAPTER 2. Directors and Management9210-9260
ARTICLE 1. General Provisions9210-9215
ARTICLE 2. Selection, Removal and Resignation of Directors9220-9226
ARTICLE 3. Examination by Attorney General9230
ARTICLE 4. Standards of Conduct9240-9247
ARTICLE 5. Investments9250-9251
ARTICLE 6. Compliance with Internal Revenue Code9260
CHAPTER 3. Members9310-9353
ARTICLE 1. Issuance of Memberships9310-9313
ARTICLE 2. Transfer of Memberships9320
ARTICLE 3. Types of Memberships9330-9332
ARTICLE 4. Termination of Memberships9340
ARTICLE 5. Rights and Obligations of Members and Creditors9350-9353
CHAPTER 4. Meetings and Voting9410-9421
CHAPTER 5. Records, Reports and Rights of Inspection9510-9514
CHAPTER 6. Miscellaneous Provisions9610-9690
ARTICLE 1. Distributions9610
ARTICLE 2. Amendment of Articles9620-9621
ARTICLE 3. Sale of Assets9630-9634
ARTICLE 4. Mergers9640
ARTICLE 5. Bankruptcy Reorganizations and Arrangements9650
ARTICLE 6. Filings9660
ARTICLE 7. Service of Process9670
ARTICLE 8. Dissolution9680-9680.5
ARTICLE 9. Crimes and Penalties9690
PART 5. TRANSITION PROVISIONS9910-9928
PART 6. CORPORATIONS SOLE10000-10015
PART 7. CORPORATIONS FOR CHARITABLE OR ELEEMOSYNARY PURPOSES10200
PART 8. TRUST FUNDS10250-10251
PART 9. SOCIETIES FOR PREVENTION OF CRUELTY TO ANIMALS10400-10406
PART 10. PORT AND TERMINAL PROTECTION AND DEVELOPMENT CORPORATIONS10700-10703
PART 11. NONPROFIT MEDICAL, HOSPITAL, OR LEGAL SERVICES CORPORATIONS10810-10841
ARTICLE 1. Nonprofit Corporations for Medical Services10810-10812
ARTICLE 2. Nonprofit Health Care Service Plans10820-10821
ARTICLE 3. Nonprofit Corporation to Administer System of Defraying Cost of Professional Services of Attorneys10830-10831
ARTICLE 4. Hospital Service Plans10840-10841
DIVISION 3. CORPORATIONS FOR SPECIFIC PURPOSES12000-14631
PART 1. CHAMBERS OF COMMERCE, BOARDS OF TRADE, MECHANICS' INSTITUTES, ETC.12000
PART 2. COOPERATIVE CORPORATIONS12200-12704
CHAPTER 1. General Provisions, Organization and Bylaws12200-12340
ARTICLE 1. Title, Purposes and Application of Part12200-12203
ARTICLE 2. General Provisions and Definitions12210-12256
ARTICLE 3. Formation12300-12302.1
ARTICLE 4. Articles of Incorporation12310-12317
ARTICLE 5. Powers12320-12321
ARTICLE 6. Bylaws12330-12333
ARTICLE 7. Location and Inspection of Articles and Bylaws12340
CHAPTER 2. Directors and Management12350-12377
ARTICLE 1. General Provisions12350-12355
ARTICLE 2. Selection, Removal and Resignation of Directors12360-12364
ARTICLE 3. Standards of Conduct12370-12377
CHAPTER 3. Members12400-12446
ARTICLE 1. Issuance of Memberships12400-12405
ARTICLE 2. Transfer of Memberships12410
ARTICLE 3. Types of Memberships12420-12422
ARTICLE 4. Termination of Memberships12430-12431
ARTICLE 5. Rights and Obligations of Members and Creditors12440-12446
CHAPTER 4. Distributions12450-12455
ARTICLE 1. Limitations12450-12454.5
ARTICLE 2. Liability of Members12455
CHAPTER 5. Meetings and Voting12460-12477
ARTICLE 1. General Provisions12460-12466
ARTICLE 2. Additional Provisions Relating to Election of Directors12470-12477
CHAPTER 6. Voting of Memberships12480-12485
CHAPTER 7. Members’ Derivative Actions12490
CHAPTER 8. Amendment of Articles12500-12510
CHAPTER 9. Sales of Assets12520-12522
CHAPTER 10. Mergers12530-12552
ARTICLE 1. Merger12530-12540.1
ARTICLE 2. Effect of Merger12550-12552
CHAPTER 11. Bankruptcy Reorganizations and Arrangements12560
CHAPTER 12. Required Filings by Corporation or Its Agent12570-12576
CHAPTER 13. Records, Reports and Rights of Inspection12580-12608
ARTICLE 1. General Provisions12580-12583
ARTICLE 2. Required Records, Reports to Directors and Members12590-12594
ARTICLE 3. Rights of Inspection12600-12608
CHAPTER 14. Service of Process12610
CHAPTER 15. Involuntary Dissolution12620-12629
CHAPTER 16. Voluntary Dissolution12630-12638
CHAPTER 17. General Provisions Relating to Dissolution12650-12663
CHAPTER 18. Crimes and Penalties12670-12679
CHAPTER 19. Foreign Corporations12680
CHAPTER 20. Transition Provisions12690-12704
PART 3. FISH MARKETING13200-13356
CHAPTER 1. General Provisions and Definitions13200-13208
CHAPTER 2. Formation, Articles, and By-laws13220-13251
ARTICLE 1. Formation13220
ARTICLE 2. Articles of Incorporation13225-13230
ARTICLE 3. By-laws13240-13251
CHAPTER 3. Officers13275-13293
ARTICLE 1. Generally13275-13279
ARTICLE 2. Removal of Officers13290-13293
CHAPTER 4. Members13300-13304
CHAPTER 5. Stock13310-13316
CHAPTER 6. Powers13325-13335
CHAPTER 7. Marketing Contracts13350-13356
PART 4. PROFESSIONAL CORPORATIONS13400-13410
PART 5. SMALL BUSINESSES14000-14024
CHAPTER 1. California Small Business Financial Development Corporations14000-14024
ARTICLE 1. Introduction14000-14002
ARTICLE 2. Definitions14003
ARTICLE 3. Program Manager14004-14004.2
ARTICLE 4. New Corporations14005-14012
ARTICLE 5. Corporation Board14013-14017
ARTICLE 6. Corporations, Miscellaneous14018-14021
ARTICLE 7. Conflict of Interest14022-14024
PART 6. EMPLOYEE-OWNED BUSINESSES14200
PART 7. GENERAL PROVISIONS APPLICABLE TO CERTAIN CORPORATIONS14300-14318
CHAPTER 1. Water Companies14300-14307
PART 9. CABLE TELEVISION CORPORATIONS14400
PART 11. SOCIETIES FOR THE PREVENTION OF CRUELTY TO ANIMALS14500-14505
PART 12. NONPROFIT COOPERATIVE AGRICULTURAL MARKETING ASSOCIATIONS14550-14551
PART 13. BENEFIT CORPORATIONS14600-14631
CHAPTER 1. Preliminary Provisions14600-14604
CHAPTER 2. Corporate Purposes14610
CHAPTER 3. Accountability14620-14623
CHAPTER 4. Transparency14630-14631
TITLE 2. PARTNERSHIPS15800-16962
CHAPTER 4. Process Agents for Certain Foreign Corporations15800
CHAPTER 4.5. Uniform Limited Partnership Act of 200815900-15912.07
ARTICLE 1. General Provisions15900-15901.17
ARTICLE 2. Formation; Certificate of Limited Partnership and Other Filings15902.01-15902.09
ARTICLE 3. Limited Partners15903.01-15903.07
ARTICLE 4. General Partners15904.01-15904.09
ARTICLE 5. Contributions and Distributions15905.01-15905.09
ARTICLE 6. Dissociation15906.01-15906.07
ARTICLE 7. Transferable Interests and Rights of Transferees and Creditors15907.01-15907.04
ARTICLE 8. Dissolution15908.01-15908.09
ARTICLE 9. Foreign Limited Partnership15909.01-15909.08
ARTICLE 10. Actions by Partners15910.01-15910.06
ARTICLE 11. Conversion and Merger15911.01-15911.19
ARTICLE 11.5. Dissenting Limited Partners’ Rights15911.20-15911.33
ARTICLE 12. Miscellaneous Provisions15912.01-15912.07
CHAPTER 5. Uniform Partnership Act of 199416100-16962
ARTICLE 1. General Provisions16100-16114
ARTICLE 2. Nature of Partnership16201-16204
ARTICLE 3. Relations of Partners to Persons Dealing with Partnership16301-16310
ARTICLE 4. Relations of Partners to Each Other and to Partnership16401-16406
ARTICLE 5. Transferees and Creditors of Partner16501-16504
ARTICLE 6. Partner’s Dissociation16601-16603
ARTICLE 7. Partner’s Dissociation When Business Not Wound Up16701-16705
ARTICLE 8. Winding Up Partnership Business16801-16807
ARTICLE 9. Conversions and Mergers16901-16917
ARTICLE 10. Limited Liability Partnerships16951-16962
TITLE 2.6. CALIFORNIA REVISED UNIFORM LIMITED LIABILITY COMPANY ACT17701.01-17713.13
ARTICLE 1. General Provisions17701.01-17701.17
ARTICLE 2. Formation: Articles of Organization and Other Filings17702.01-17702.10
ARTICLE 3. Relations of Members and Managers to Persons Dealing with a Limited Liability Company17703.01-17703.04
ARTICLE 4. Relations of Members to Each Other and to the Limited Liability Company17704.01-17704.10
ARTICLE 5. Transferable Interests and Rights of Transferees and Creditors17705.01-17705.04
ARTICLE 6. Member’s Dissociation17706.01-17706.03
ARTICLE 7. Dissolution and Winding Up17707.01-17707.09
ARTICLE 8. Foreign Limited Liability Companies17708.01-17708.09
ARTICLE 9. Actions by Members17709.01-17709.02
ARTICLE 10. Merger and Conversion17710.01-17710.19
ARTICLE 11. Dissenters’ Rights17711.01-17711.14
ARTICLE 12. Class Provisions17712.01
ARTICLE 13. Miscellaneous Provisions17713.01-17713.13
TITLE 3. UNINCORPORATED ASSOCIATIONS18000-24001.5
PART 1. GENERAL PROVISIONS18000-18420
CHAPTER 1. Definitions18000-18035
CHAPTER 2. Application of Title18055-18070
CHAPTER 3. Property18100-18135
CHAPTER 4. Designation of Agent for Service of Process18200-18220
CHAPTER 5. Liability and Enforcement of Judgments18250-18270
CHAPTER 6. Governance18300-18420
ARTICLE 1. [Reserved]18300
ARTICLE 2. Termination or Suspension of Membership18310-18320
ARTICLE 3. Member Voting18330
ARTICLE 4. Amendment of Governing Documents18340
ARTICLE 5. Merger18350-18400
ARTICLE 6. Dissolution18410-18420
PART 2. NONPROFIT ASSOCIATIONS18605-21401
CHAPTER 1. Liability18605-18640
CHAPTER 3. Medical Associations21200
CHAPTER 4. Insignia21300-21310
CHAPTER 5. Death Benefit Payments by Fraternal Societies21400-21401
PART 3. JOINT STOCK ASSOCIATIONS22000-22003
PART 4. REAL ESTATE INVESTMENT TRUSTS23000-23006
PART 5. LIABILITY OF DIRECTOR OR OFFICER OF NONPROFIT MEDICAL ASSOCIATION24001.5
TITLE 4. SECURITIES25000-31516
DIVISION 1. CORPORATE SECURITIES LAW OF 196825000-25707
PART 1. DEFINITIONS25000-25023
PART 2. QUALIFICATION OF AND FILING REQUIREMENTS FOR THE SALE OF SECURITIES25100-25166
CHAPTER 2. Issuer Transactions25110-25118
CHAPTER 3. Recapitalizations and Reorganizations25120-25122
CHAPTER 4. Nonissuer Transactions25130-25134
CHAPTER 5. Authority of the Commissioner25140-25151
CHAPTER 6. General Provisions25160-25166
PART 3. REGULATION AND NOTICE FILING REQUIREMENTS OF AGENTS, BROKER-DEALERS, INVESTMENT ADVISER REPRESENTATIVES, AND INVESTMENT ADVISERS25200-25256
CHAPTER 1. Exemptions25200-25209
CHAPTER 2. Licensing of Agents and Broker-Dealers25210-25221
CHAPTER 4. General Provisions25240-25256
PART 4. ADVERTISING SECURITIES25300-25302
PART 5. FRAUDULENT AND PROHIBITED PRACTICES25400-25404
PART 6. ENFORCEMENT25500-25550
CHAPTER 1. Civil Liability25500-25510
CHAPTER 2. Powers of the Commissioner25530-25536
CHAPTER 3. Crimes25540-25542
CHAPTER 4. Service of Process25550
PART 7. ADMINISTRATION25604-25620
PART 8. GENERAL PROVISIONS25700-25707
DIVISION 2. SECURITY OWNERS PROTECTION27000-27202
CHAPTER 1. Definitions and General Provisions27000-27003
CHAPTER 2. Unlawful and Fraudulent Conduct27100-27101
CHAPTER 3. Civil Liability and Crimes27200-27202
DIVISION 3. CAPITAL ACCESS COMPANIES28000-28958
CHAPTER 1. General Provisions28000-28049
ARTICLE 1. Short Title and Construction28000-28004
ARTICLE 2. Definitions28030-28049
CHAPTER 2. Administration28100-28111
CHAPTER 3. Licensing28150-28155
CHAPTER 4. Organizational Matters28200-28212
ARTICLE 1. Organization and Name28200-28201
ARTICLE 2. Directors28210-28212
CHAPTER 5. Offices28320
ARTICLE 1. Establishing, Relocating, and Closing Offices28320
CHAPTER 6. Transaction of Business28400-28405
CHAPTER 7. Records, Reports, and Examinations28500-28505
CHAPTER 8. Acquisition of Control28550-28552
CHAPTER 9. Merger and Purchase or Sale of Business28600-28604
CHAPTER 10. Voluntary Surrender of License28650-28651
CHAPTER 11. Enforcement28700-28716
CHAPTER 12. Crimes and Criminal Penalties28800-28881
ARTICLE 1. General Provisions28800-28802
ARTICLE 2. Conflicts of Interest28820-28821
ARTICLE 3. Criminal Penalties28880-28881
CHAPTER 13. Civil Penalties28900-28901
CHAPTER 14. Miscellaneous Provisions28950-28958
DIVISION 4. BUCKET SHOP LAW29000-29201
CHAPTER 1. Definitions29000-29008
CHAPTER 2. Prohibited Activities29100-29105
CHAPTER 3. Required Records and Statements29200-29201
DIVISION 4.5. COMMODITIES29500-29567
CHAPTER 1. Definitions29500-29516
CHAPTER 2. Unlawful Commodity Transactions29520
CHAPTER 3. Exemptions29530-29532
CHAPTER 4. Unlawful Activities and Fraudulent Conduct29535-29538
CHAPTER 5. Powers of the Commissioner29540-29546
CHAPTER 6. Crimes and Civil Liability29550-29555
CHAPTER 7. Miscellaneous Provisions29560-29567
DIVISION 5. FRANCHISE INVESTMENT LAW31000-31516
PART 1. DEFINITIONS31000-31019
PART 2. REGULATION OF THE SALE OF FRANCHISES31100-31158
CHAPTER 1. Exemptions31100-31109.1
CHAPTER 2. Disclosure31110-31125
CHAPTER 3. General Provisions31150-31158
PART 3. FRAUDULENT AND PROHIBITED PRACTICES31200-31220
CHAPTER 1. Fraudulent Practices31200-31204
CHAPTER 2. Prohibited Practices31210-31211
CHAPTER 3. Unfair Practices31220
PART 4. ENFORCEMENT31300-31420
CHAPTER 1. Civil Liability31300-31306
CHAPTER 2. Powers of the Commissioner31400-31408
CHAPTER 3. Crimes31410-31412
CHAPTER 4. Service of Process31420
PART 5. ADMINISTRATION31500-31506
PART 6. GENERAL PROVISIONS31510-31516
TITLE 10. REPEALS100000-100008

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