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How to Form a Mutual Benefit Corporation in California

    How to Form a Mutual Benefit Corporation in California

    • 1). Determine if the corporation you are forming meets the requirements for a mutual benefit corporation. The corporation may be for any legal purpose, but corporate assets must be "irrevocably dedicated to charitable, religious, or public purposes."

    • 2). Create a structure for your corporation by drafting corporate bylaws. Bylaws establish the size of the Board of Directors, identify officers and establish the rules and procedures for board meetings.

    • 3). Choose a name for the corporation. You can verify the name is available by sending a Name Availability Inquiry Letter to the Secretary of State. Reserve the name you have chosen by sending a Name Reservation Request Form. Both forms are available at the Secretary of State's website.

    • 4). Copy the exact language used in the sample articles for a mutual benefit corporation that are available at the Secretary of State's website. Your corporate articles must meet all of the requirements set by the California Corporations Code. The Secretary of State's sample articles meet the minimum requirements.

    • 5). Fill in your corporate information. Insert the name of your corporation in Article 1. Insert the corporate purpose in Article II B. Insert the name and address of the corporation's agent for service of process in Article III. The "agent for service" is the person authorized to receive legal documents on behalf of the corporation and must be a California resident.

    • 6). Sign the articles. If the articles include the names of corporate directors, each director must sign. If directors have not yet been named, the individual or individuals filing the articles must sign. Type the person's name beneath each signature.

    • 7). Mail the articles, along with a check for the filing fee, to the Secretary of State's main office in Sacramento or deliver them to a regional office. Current office addresses and the amount of the fee are listed in the document with the sample articles.

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