JJ Luna

California Corporation

Submitted by:
JJ, I have a question with regard to privacy and corporations. I want to start an internet business. I live in Palo Alto, California, and will be making bank deposits in California and will have a mail drop in California, which requires me (according to my cpa), to have a California corporation or to qualify my corporation in California. I have thought about incorporating in Nevada and qualifying in California, but the cpa says this will just complicate things and add large costs for a small business.

So I have several specific questions about forms where privacy will be compromised. First, there is the application for a Federal Employer Identification Number which asks for the name and social security number of the principal officer of the company. The second is the California equivalent of the Federal Identification Number. The third is the state website which lists officers of the corporation. The fourth is postal form 1583 which asks for 2 forms of id when trying to use a mail drop. The fifth is setting up a bank account in California which requires all signers on the account to appear personally with 2 forms of identification. How would you go about incorporating? How do I get around these privacy breaches? I would really appreciate your insight on this matter. John

JJ Luna Responds:

NEVADA: Your CPA is correct. Don't do it.

... CORPORATIONS: You will forego your privacy if you insist on going that route.

... ALTERNATIVE: Do business with a personal account, using initials. The details are in Appendix C of my e-book Skip College: Go Into Business for Yourself. See the subheading "How to create an invisible owner for your new business."

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