Foreign Corporations in California – Failure to File Penalties

As the web grows exponentially, it is easier than ever to do business across the country with the click of a mouse. For corporations, this can lead to all kinds of legal problems, particularly in California.

Corporate law is controlled for the most part by state law. As a result, states view a corporation formed in another state and doing business in theirs as “foreign corporations.” Many people mistakenly believe the foreign designation refers to overseas when it does not. If you are deemed to be a foreign corporation doing business in a state, you can be subject to legal and tax ramifications.

California is one state that is very aggressive in this regard because many businesses in the state try to get around taxes by forming in Nevada. A veritable horde of legal tests have been put together to determine whether such approaches will fly or not. At the end of the day, however, California usually gets its piece of the pie.

If you are determined to be a foreign corporation conducting business in California without properly filing notice with the state [and paying taxes], there are five basic penalties.

1. You can be assigned a per diem penalty. This is a daily penalty amount. A court determines it after an action is brought by the attorney general of the state. Issues argued in front of the judge will include the size of the corporation, the amount of business done in the state and the willingness of the entity to evade filing with the state.

2. Criminal Charges – Yes, the corporation can be pursued criminally. Fortunately, the charge is a misdemeanor and the penalty is usually a nominal fine.

3. Not Standing – The offending corporation can be barred from filing or defending lawsuits in the state.

4. Agents Liability – Agents who conduct business on behalf of the corporation in California can be fined or jailed for a year.

5. Void Contracts – All contracts can be voided by California courts.

Most corporations that are attacked in regard to the above are not randomly selected. Instead, the issue arises when a dispute with another party comes to the forefront. Still, it can be damaging. The only real remedy the corporation has is to pay all fines and penalties. It then must file all back taxes and tax returns to get into good standing.

If you run a business that is doing more and more business in California, it makes sense to take steps to determine if you should be registered as a foreign corporation in the state. Failure to do so can lead to administrative and financial difficulties that can severely tie down and damage a business.

Water Sports and Surfing in California

With its fabulous, year-round warm climate, California has been synonymous with surfing and the sporty, tanned, blonde-haired types who have participated in the sport since the 1960s. As such, you’d be hard pressed to find somewhere better to go if you want to ride the best waves! The undisputed hotbed of surfing in California is San Diego – the state’s second largest city. Here, you’ll find fantastic Pacific beaches with facilities specifically designed for surfers and other water sports users, as well as some of the biggest waves that the Pacific has to offer.

Home to several of the surfing industry’s biggest manufacturers and famous pro surfer Rob Machado, the city’s hottest surfing beaches can be found at Black’s Beach, Swamis, Windansea and, of course, at San Diego’s biggest beach: Mission Bay. Attracting millions of visitors each year, San Diego’s beaches are packed with surfers eager to ride the waves; and on the days when the surf isn’t up to par, you’ll be able to participate in other exciting water sports – such as water-skiing, jet skiing and paragliding.

Instruction in all water sports disciplines is available at Mission Bay Beach, with some of the biggest and best water sports schools to be found there. Just beyond the beach there is a massive park that offers other recreational activities, such as volleyball and basketball; but with plenty of picnic areas and outdoor barbeques, this park quickly fills up during the summer months, so sun-lovers must get there early to secure their spot!

Many of the best hotels in San Diego are also found in the Mission Bay Beach area, which – at only six miles from the international airport – is convenient to reach and also serves as a great base from which to explore the city and its surroundings.

As California’s second largest city you’ll find there is much to do in San Diego when you’re not surfing, swimming or generally splashing around in the sea; you’ll be able to visit everything from some of California’s best art museums to local zoos! The San Diego Museum of Art, the Museum of Man and the Natural History Museum are all popular attractions and are all found in the picturesque Balboa Park, along with the Museum of Photographic Arts.

Other cultural highlights include local theatres, opera and the San Diego Symphony. The city is also home to two major US sporting franchises: the NFL’s Chargers and the Padres, a popular Major League Baseball team. If none of those alternative attractions or activities tickle your fancy, how about trying the impressive San Diego Zoo, Seaworld, the Wild Animal Park, or even the theme park at Legoland?

Whatever attracts you to San Diego, whether it’s sun, sand, surf or the sights, you’ll be warmly welcomed by friendly locals, who will do all they can to help you enjoy your holiday.