Pulse Beat March 2010 by City of Paramount

PULSE BEAT PULSE BEAT

Host 2010 State of the City Address

Reporting on the past and planning for the future was the theme for speakers at the Paramount Chamber annual State of the City Address. The event sponsored by Paramount Petroleum was attended by more than 140 business and service organization members.

Chamber President Martin Johnson host for the event began by introducing elected officials thanking Paramount Petroleum for their sponsorship.

The first speaker of the afternoon was Pastor Larry Jameson, Lifegate Foursquare Church. Jameson reported on various activities taking place throughout the churches in Paramount.

“I want you to know that the churches in Paramount have spent time during services and walked the streets praying for you and your business,” said Jameson. He went on to say, “The declining economy and the unemployment rate has touched everyone in some way and the churches are doing everything they can to help.”

He reported on church events which offered free services such as; health screenings, haircuts, manicures, shoe shines and family portraits as well as Harvest Festivals with free food and prizes. Churches are also providing spiritual guidance and prayer to those in need.

The second speaker was Paramount Unified Superintendent Dr. David Verdugo who began by saying Paramount was a unique and special place.

“We have outstanding students, talented teachers, involved parents and support from our City,

Chamber, Sheriff, PEP, Service Clubs, Churches and Citizens.” Verdugo said evidence of the support can be seen in the approval of a $100 million bond which passed with flying colors. Money from the bond has already built a state of the art stadium, and construction is underway for the Delores Stephens Library; which will be open to the public on weekends. There will also be a new gymnasium at the PHS West Campus. Test scores in Language Arts and Mathematics saw gains district wide, and more than $175,000 in student scholarships were awarded in 2009.

The next speaker was Mayor Diane Martinez who said she always looks forward to the State of the City Address, “It brings us together as a community to share our progress.” Martinez said good financial principles have helped Paramount weather the economic storm and despite the struggle there are a lot of positive things happening in Paramount.

Closing out the afternoon was City Manager Linda Benedetti-Leal who said, “There are

good things to report this year. We’ve experienced no major cuts in programs or services, and, in fact, added some resources in 2009.” She went on to say the City has seen a two million dollar drop in sales tax revenue over the past two years due mostly to decreased fuel sales. A hiring freeze has been implemented and salaries are frozen. However, no major city activities, programs or services have been affected. In addition, several new retailers have come to town including Fresh ‘N Easy market, TJ Maxx and soon a new Ross store. Despite a bad economy which tends to increase crime, Paramount saw a 13% drop over 2008 and a 45.5% drop over the past 15 years. Projects underway for the new year include remodeling the police station and new pavement on Somerset from Garfield to the west city limit. Benedetti-Leal ended with a quote from Great Moments with Mr. Lincoln. “I like to see a man proud of the place in which he lives. I like to see a man live so that his place will be proud of him.”

Chamber President Martin Johnson Lifegate Foursquare Pastor Larry Jameson

PUSD Superintendent Dr. David Verdugo

Paramount Mayor Diane Martinez City Manager Linda Benedetti-Leal

“Paramount Today” Presentation For Residents On March 11

The Paramount City Council will host “Paramount Today: A Report to the Community” on Thursday, March 11, at 7:00 p.m. at Progress Park Plaza. All residents are invited to come hear City Manager Linda Benedetti-Leal give a talk on the “state of the city,” including a review of past and current accomplishments in Paramount, as well as future plans for our town.

The event is free. Light refreshments will be served. Progress Park Plaza is located at 15500 Downey Ave. For more information, please call (562) 220-2121.

Easter Faire Coming April 3

The City’s annual Easter Faire will be held on Saturday, April 3, from 10:00 a.m. to 1:00 p.m. in Paramount Park. This heartwarming event has long been a fun outing for the whole family, and is always very well attended.

We’ll again be featuring game booths,

ﬁeld competitions, a moon bounce and many more activities. There will also be an egg hunt in the park and, of course, a visit by the Easter Bunny. The festivities are free, but vendors will be offering food for sale.

Paramount Park is located at 14400 Paramount Blvd. Please call (562) 220-2121 for more information.

Paramount Receives Red Cross Good Neighbor Award

The City of Paramount has received the Hal Ball Good Neighbor Award from the Greater Long Beach Chapter of the American Red Cross.

The award is presented annually to an individual, company or organization that goes above and beyond the call of duty to help the American Red Cross fulﬁll its mission to prevent, prepare for and respond to emergencies. The winner is considered a friend to the Greater Long Beach Chapter when assistance and support are needed.

The City has been a Good Neighbor to the American Red Cross in a number of ways. Staff members serve on the Greater Long Beach Chapter’s Diversity Advisory Committee and have been key participants in collaborative disaster preparedness activities. Together with Red Cross staff, the City has produced disaster preparedness presentations. ‘Starter kits’ were given to more than 400 residents in Paramount. CPR training was also provided to many of these residents. Through the City, many businesses in Paramount have become strong Red Cross supporters.

Our Parks & Recreation staff has been trained in Red Cross shelter operations, and has hosted two shelter drills at Progress Park.

“As a result of this increasing collabora-

with the Hal Ball Good Neighbor Award for 2009.”

Recycling Used Motor Oil

If you change the motor oil in your vehicle, you cannot dispose of it in the trash or down the drain. It must be recycled. But there are two easy ways to get rid of the stuff in Paramount. You can take the used oil and used ﬁlters

to Kragen Auto Parts at 15725 Downey Ave., phone (562) 272-1433. (It is recommended that you call before taking the oil in.) Or you can arrange for them to be picked up at home by calling Curbside, Inc. at 1800-HHW-PKUP.

A few things to keep in mind: do not mix oil with bleach, paint, solvents or automotive ﬂuids; contaminated oil will not be accepted; carry oil in clean, non-breakable, non-metal containers; maximum container size accepted is five gallons; maximum drop-off amount per day is 20 gallons. For more information on recycling used oil or for other drop off locations, please call 1-888-CLEAN-LA.

Mayor, Diane Martinez

Free Workshops for Rental Owners/Managers

The City of Paramount will be holding its latest Good Neighbor Program seminars for rental property owners/managers at Progress Park Plaza on Saturday, March 27, from 10:00 a.m. to 12:30 p.m. and Saturday, April 24, from 10:00 a.m. to 12:30 p.m. These free workshops are designed to supply helpful hints and tools for multi-unit rental properties. Progress Park Plaza is located at 15500 Downey Ave., Paramount.

Ideally, owners and managers will attend both workshops to receive the program’s certiﬁcation and seal of approval that can help attract quality tenants.

Begun in 1999, the program aims to enhance the quality of life for residents, create higher tenant satisfaction rates and remove unlawful tenants. The effort also increases a property’s long-term proﬁtability for the owner, lowers maintenance costs and establishes close contact between the owner/manager, the City and the L.A. County Sheriff’s Department.

The classes are held in conjunction with the Apartment Association of Southern Cities, the Sheriff’s Department, and attorneys specializing in landlord/tenant law. Topics include tenant screening techniques, evicting problem tenants, developing effective rental agreements and recognizing criminal activity, all in an effort to keep a property crime free.

Another part of the program involves a task force made up of inspectors from the City’s Building and Safety Department, as well as personnel from the Sheriff’s Department and the District Attorney’s ofﬁce.

Upon completion of the Good Neighbor Program, a distinctive “GNP” sign can be placed on these certiﬁed properties. Owners and managers can use this certiﬁcation as a marketing tool when looking for new renters. In addition, property owners who successfully

complete the program may receive a one-year free membership in the Apartment Association of Southern Cities and a one-year waiver of their City business license fees.

The United States government conﬁrmed the importance and success of the Good Neighbor Program when the federal Department of Housing and Urban Development (HUD) gave it a Best Practices Award for “outstanding community achievement.” The award is given to programs that improve the lives of residents and revitalize communities by addressing housing-related problems.

Rental owners and property manages representing hundreds of properties and thousands of rental units in Paramount have taken part since the GNP began. As a result, they have enjoyed substantial returns in the form of higher property values, lower repair costs and healthier rental rates.

To make a reservation for the workshop, or to ﬁnd out more information about the Good Neighbor Program, please call Natalie Dominguez at (562) 220-2002.

Public Safety Employee Honored by Red Cross

On August 10 of last year, Paramount Assistant Director of Public Safety Adriana Lopez was attending a barbecue when a young child began choking on a piece of food. Acting quickly and calmly, Lopez approached the child, performed a series of back blows and successfully dislodged the food.

As a result of her action, Lopez will be recognized as a Hometown Hero by the Greater Long Beach Chapter of the American Red Cross at a special breakfast on March 11. The event will be held at the Hyatt Regency Hotel in Long Beach. For more information, please call (562) 490-4020 or visit www. redcrosslb.org.

Paramount City Council VOLUNTEER

At its February 2nd meeting, the Paramount City Council was presented with a special commendation from the Association of Los Angeles Deputy Sheriffs, which represents the rank and file officers of the Sheriff’s Department, on the long and fruitful relationship between officers and the City. From left, Councilmember Gene Daniels, Mayor Diane J. Martinez, Deputy Steve Remige (president of the association), Councilmember Peggy Lemons and Councilmember Daryl Hofmeyer.

President Obama’s Stimulus Package Brings Funding for Training to Paramount Residents

The SASSFA Employment and Training Worksource Center received money through the American Reinvestment & Recovery Act (ARRA) to assist unemployed individuals in the local community to receive training and get back into the workforce.

Thousands of dollars are available for various types of classroom training. “The focus is to get clients into short term training and working in the next six months,” said Francisco De Leon, SASSFA Program Director. Clients can choose from various

industries in demand, such as: medical ﬁeld, green energy technology, transportation, business administration, and many more.

“SASSFA has been great and extremely helpful, so much more helpful that what one would expect,’” said Lily Sherif, Paramount resident and SASSFA client. Lily is one of many affected by the economic downturn and was laid off over 6-months ago from the banking industry. Lily participated in a 12-week Microsoft Database

Ambassador Proﬁles

Name: Darlene Harris

Company Name: Luis Acosta State Farm Insurance Agency

Born: Honolulu, Hawaii

Education/Training: Extensive management experience in insurance, mortgage banking-loan servicing and municipal government- communications, marketing, economic development, business liaison.

Telephone: W: 562 531-1900 C: 562 7165859

Major Product or Service: Insurance & Financial Services

Why did you join the Chamber? Strength and success of Chamber; networking opportunities; to create awareness of our new ofﬁce within the community; an opportunity to become active in the business segment as it supports and gives back to the community.

Favorite Saying: Look for the silver lining; share the Aloha spirit. If You Were Granted 3 Wishes What Would They Be:

1. Relocate to Prescott, Az.

2. Win the lottery and take all my family and friends on a 6 month World Cruise.

3. Sail and explore the Greek Islands for an entire summer; salmon ﬁsh in Alaska’s interior (stay-at-a-lodge, someone else cleans and cooks the ﬁsh!)

Administration training that was fully paid for thorough ARRA funds. “I already had a Business Intelligence Certiﬁcate and I wanted to get another certiﬁcate to have more choices when I look for a job and I wanted to be more marketable to employers,” said Sherif. Lily has completed her training and is being assisted by SASSFA Job Developer with her job search.

“We are looking at enrolling clients into the ARRA program and into training by the end of February 2010,”

said Francisco De Leon, SASSFA Program Director. “Training slots are expected to ﬁll up fast.” Any individuals who are currently unemployed are encouraged to apply for the program before February 28.

For more information on the training programs and services available for job seekers, contact the Paramount SASSFA Employment and Training Center at (562) 633-9511, extension 225, ask for Domenica Alatorre. The ofﬁce is located at: 15538 Colorado Avenue, Paramount, CA 90723.

Giving To PEP Provides Investment In Paramount’s Future

The City of Paramount will be holding the 7th Annual Fundraiser for the Paramount Education Partnership (PEP) in June. The money raised at the event will support college scholarships for Paramount students. Over the years, the fundraiser has produced nearly $200,000 for local students with ﬁnancial need who are attending community college, a trade school or university. PEP’s goal is to reach even more residents in this way throughout the community.

The Dollars For Scholars Program is just one aspect of PEP, an alliance between the City of Paramount, the Paramount Uniﬁed School District, and the Paramount Chamber of Commerce. PEP is dedicated to providing programs and services that improve overall academic skills through literacy and math enrichment programs, homework help, English as a Second Language Classes, the Math, Engineering & Science Achievement (MESA) program and more.

There are numerous sponsorship and donation opportunities available for the fundraiser. All donations will be made to the PEP 501c3 non-proﬁt entity, so they will be tax deductible. If interested in sponsorships or other contributions, or for more information about PEP, please contact Suleyma Rosales, recreation supervisor, at (562) 220-2145.

Your donation will be an important investment in the community, as it helps students and families reach better education opportunities and a brighter future.

Scholarship Applications Available

Speaking of the Dollars For Scholars Program, applications for this year’s recipients are now available.

Scholarships are in the amounts of $1,000 for students attending a community college and $3,000 for students attending an accredited four-year institution within

the United States, including vocational/ trade/technical schools. Scholarship monies awarded this year may only be used to pay tuition, fees, books and supplies for the 2010-2011 school year.

To apply for the scholarships, you must be a City of Paramount resident or Paramount Uniﬁed School District student and/or graduate. Winners are chosen based on academic record, a written essay, ﬁnancial need, extracurricular activities, work or volunteer experience and future goals.

For further requirements and eligibility rules, pick up an application at Paramount High School, the Chamber of Commerce, the Library, City Hall, the City Yard, the Adult School or PEP’s Community Learning Resource Centers. Applications can also be downloaded at the City website, www. paramountcity.com. Go to Parks and Recreation and then ﬁnd the Paramount Education Partnership page.

Finished forms and all documents must be postmarked no later than Monday, May 17, 2010, and mailed to the PEP Scholarship Committee, 16400 Colorado Blvd., Paramount, CA 90723. They can also be hand delivered by 5:30 p.m. on that date to Paramount City Hall at the same address. For more information, please contact Suleyma Rosales, recreation supervisor, at (562) 220-2145.

Pennies For PEP

The beginning of this month also kicked off the annual Pennies For PEP fundraiser at every school in the Paramount Uniﬁed District. Each classroom has a container for students to drop their spare change in, with all the money ending up in the scholarship program.

Last year the kids were very generous, contributing a whopping $11,500. Of course, they say records are made to be broken, so let’s see what happens this year.

Book Grant Benefits Preschool

Paramount’s Little Learners Preschool – which offers early literacy training to Paramount kids ages 3 and 4 – recently received a $3,000 grant for books from Liberty Tax through the Bring Me A Book Foundation.

The Bring Me A Book Foundation is involved in supporting the White House Initiative on Education Excellence for Hispanic Americans and is partnering with the U.S. Census Bureau to emphasize the importance of

the Census to the Hispanic communities nationwide. It has connected the City with a number of donors for educational books.

Attending the unveiling of the new library purchased with the grant funds were, from left, Mayor Diane J. Martinez, Liberty Tax’s Director of Diversity Marketing Martee Pierson, City Councilmember Gene Daniels and Paramount Unified School Boardmember Tony Pena.

El Camino College Compton Center Students Selected

to Attend UCI Saturdays with Scientists Program

El Camino College Compton Center students have been selected to participate in the UCI Saturdays with Scientists program for the 2010 academic year. Program participants will engage in hands-on science, technology, engineering and math activities with some of the world’s most prominent researchers.

The ﬁve students chosen are: Jason Hernandez, Vanessa Melgoza, Rodby Orellana, Cristina Thomas, and Juan Vargas. The application process required the students to be math, science, engineering or computer science majors with a minimum of a 3.0 grade point average.

El Camino College Compton Center students will join 45 other community college participants for hands-on activities and lectures with top University of California, Irvine (UCI) faculty from the Schools of Biological Sciences, Engineering, Information and Computer Science, and Physical Sciences.

The program takes place over a series of ﬁve Saturdays, which began January 23, and includes exploration of career options, sessions on transfer admissions in STEM (Science, Technology, Engineering and Math) ﬁelds, and a review of special programs for STEM majors on the UCI campus.

MARK YOUR CALENDARS Paramount Chamber 10th Annual Job Fair May

22, 2010

HELP WANTED

OUTSIDE SALES AND BODY & PAINT TECHNICIAN WITH TOOL EXPERIENCE. Trouble-shooting. Apply at Herald’s Garage, 8124 E. Alondra Blvd, Paramount. 562-633-2136, Ask for Joe.

AMFED SALES, a toner and ofﬁce product company in Paramount CA, is currently seeking an inside sales representative. Applicants must have at least two years sales experience, strong phone skills, and computer skills. This position is commission based and work hours are from 9am to 5 pm Mon-Fri. Please send resume to frank@amfedsales. com or fax to 562/272-0186 Attn: Frank Vasquez”

The Paramount Chamber of Commerce Would Like to Thank

our Major Sponsor,

Carlton

Forge Works and the Following Businesses & Organizations Who Contributed to the 2010 Paramount Chamber Golf Classic

Major Rafﬂe Prize: Fenico Precision Casting Beverages: Triangle Distributing

Mystery Prize: Paramount Petroleum

Longest Drive & Pins: Lindsay Lumber

Hole-in-One: Cal Met Services, Inc.

Awards: Supervisor Don Knabe

Lunch: Transcom Services & Eastern Meats

Auction Baskets:

Ace Clearwater Enterprises

AppleCare Medical Group

Aquarium of the Paciﬁc

Cerritos Centre for Performing Arts

Disneyland

Gateway Business Bank

L.A. County Fire Dept.

LA County Sheriffs

Legoland

Medieval Times

Pirates Dinner

Seaworld

Stop Staring!

Supervisor Don Knabe

Universal Studios

Westridge Golf Course

Rafﬂe Donations:

California Screw Products

Industrial Risk

Pepsi Supervisor Don Knabe

Transcom Telecommunications

Zamboni Merchandising

Super Tee Signs:

Bianchi Theatres

California Screw Products

Carlton Forge

Frize Corporation

Heath Machine

ISU Insurance Services

Marukan Vinegar, USA, Inc.

Paramount Petroleum

Petrochem Insulation

Press Forge Works

Weber Metals

Tee Signs:

All Pro Building Services

Alondra Hot Wings

Apple Care Medical

Aramark Uniform Services

ASAP Sign Co. Inc.

ASR Food Distributors

Bendetti Company/ Garﬁeld-Paciﬁc Dev. Co.

Care Ambulance Service

Casa Gamino Restaurant

Cenaduria Mazatlan

CJM Computer

Cleantime Building Maintenance Co.

Clearbrook Farms

Clinica Medica Hispana

Coastline Equipment

Demaria Electric Motor Services

Downey Plumbing, Heating & Air

Conditioning

Dr. Allen H. Ko, D.D.S.

Duane Mahan

Duke & Associates

Dusk to Dawn Urgent Care

El Gran Torino, Inc.

Elks Lodge BPOE # 1804

Games Cheap

Gateway Business Bank

Gazebo Flowers

Greg’s Collision

Hunter Security

Busby-Stone Risk Management

JBC Construction

KI Tools Eng. Co.

Lerma Law Ofﬁces

Lions Club of Paramount

M. Argüeso & Co., Inc.

M. P. Produce

Max Martinez, D.D.S.

Mc Donald’s Restaurant

Mission Stucco

Paciﬁc Landscaping Group

Para Latino Medical Center

Paramount Girls Softball

Paramount Resource Recycling

Paramount Rotary

Paramount SASSFA

Paramount Uniﬁed

PDQ Rentals

Petrochem Insulation

PTM Company

Queen Bee Mobile Notary

Redman Equipment & Mfg

Romberg Milling

Royal Paper Corp.

Rudy’s Video Games

S. T. & I. Inc.

Southbay Landscaping

State Farm, Luis Acosta Agency

Supervisor Don Knabe

SYSCO Foods

The Bread Nut

Tip Top Towing

Total Western, Inc.

Transcom Services

Valley Abrasives

Vernon Security

Victor’s Produce

Ward Industrial Properties, Inc.

Westech Products

Health Savings Accounts: A tax-advantaged way to reduce health insurance costs

By Luis Acosta State Farm® agent

562.531.1900

To help reduce health insurance costs, the Health Savings Account (HSA) might be the right option for you. HSAs have grown in popularity as a way for consumers to manage the costs of healthcare.

The concept of HSAs is simple. First, to be eligible for an HSA, you must be covered under a high-deductible health plan (HDHP) among other conditions. An HDHP is generally a plan that has an annual deductible for 2009 of at least $1,150 for self-only coverage and at least $2,300 for family coverage. Also, the HDHP must have a maximum out of pocket expense limit of $5,800 for self-only coverage and $11,600 for family coverage. In other words, you pay for routine medical care like doctor visits, while insurance covers catastrophic medical expenses. Since you accept more of the expense of your healthcare, your premiums will be substantially lower.

This is where the HSA comes in. An HSA is a separate account into which you can deposit pre-tax dollars. In 2009, the maximum annual amount you may contribute to your HSA is $3,000 for self-only coverage and $5,950 for family coverage.

If you are age 55 or older by the end of the year, you may contribute up to an additional $1,000. Medicare enrolled individuals cannot contribute to an HSA.

You may take federal income tax-free distributions from an HSA to pay for qualiﬁed medical expenses including doctor visits, eye and dental care and even a portion of qualified Long-Term Care Insurance premiums. Any money not used in the year can remain in the HSA and continue to grow tax deferred, it’s not a “use it or lose it” type of account.

If you withdraw money for something other than qualiﬁed medical expenses before you are 65, the withdrawal will be taxed as ordinary income and subject to an additional 10% tax penalty. At age 65, the penalty tax no longer applies, however funds withdrawn will be taxed as ordinary income if used for non-qualiﬁed medical expenses.

An HSA can be an effective financial tool, particularly for those who are uninsured or under-insured, small business owners or anyone facing the challenge of affording quality health insurance coverage. To find out if HSAs are right for you, talk to a financial services professional that knows your needs.

Neither State Farm nor its agents provide tax or legal advice.

A Few More Reasons To Save

By Maria F. Galli State Farm Galli Agency

562.817.5620

Many people set goals to save more money to support a comfortable retirement. Even if your retirement seems well into the future, there can be some instant gratification. By opening an Individual Retirement Account (IRA) before April 15, 2010, you may be able to take advantage of some potential tax beneﬁts on your 2009 tax return.

For the 2010 tax year, individuals can make annual contributions to a traditional or Roth IRA of up to $5,000 or 100% of earned income, whichever is less. Married couples filing jointly can contribute up to $10,000 ($5,000 per IRA) provided either spouse has earned income of at least that amount. As an added benefit, individuals age 50 or older are eligible to take advantage of a catch-up provi -

sion and contribute an additional $1,000 to an IRA.

Customers can set up an IRA with a minimal initial contribution. By continuing to add to that on a monthly basis or when their ﬁnances allow, the account has the potential to grow on a tax-deferred basis and becomes a great resource to help save for the future and provide the comfortable retirement they desire.

Depending on factors such as your time horizon, risk tolerance, and other ﬁnancial goals, some products may be more suitable than others. An IRA can become a crucial part of your personal retirement savings program. The sooner you begin, the more time you have to take advantage of the beneﬁts an IRA provides.

The time to establish an IRA has never been better. Contact a professional to help assess your ﬁnancial situation and determine what type of IRA or funding vehicle may best meet your needs.

Kindergarten – 8th Grade School Year 2010-2011

SATURDAY, MARCH 6th School Hall 2:00 to 5:00 p.m.

Parents to bring the following: - Baptismal Record - Immunization Records - PPD Mantoux Tuberculosis

- Record of Physical Exam- Kindergarten & 1st Grades

- Recent Report Cards - All Grades

- Certiﬁcate of Conﬁrmation & First Holy Communion

Should I Incorporate my Business?

I. The Fundamental Purpose of a Corporation is to protect your Personal Assets and Income from the Liabilities of your Business.

When you form a corporation (or an LLC), you are creating a legal entity separate from yourself through which you can conduct business, instead of operating a business in your individual capacity as a “sole proprietor”. This enables you (as long as you run your corporation properly) to protect your personal assets and income from the debts of the business. If your corporation gets sued and loses its case in court, the winner or “judgment creditor” can only go after the assets of the corporation to satisfy the judgment.

II. What’s Required to Form a Corporation?

You will need to find a corporate name acceptable to the Secretary of State, file your Articles and obtain an Employer Identification Number (EIN) from the IRS. You are then ready to open a bank account in the name of your corporation. Keep this account separate from your personal assets. If you comingle them, someone might be able to “pierce the corporate veil” and get to your personal assets because you were not treating your corporation as an entity separate from yourself. The protection from personal liability discussed above will be lost.

A Corporation in California may be owned by one or more individuals. To be a legitimate corporation, these individuals must buy some “shares” or “stock” in their own Corporation and thereby become its “shareholders.” ”The shareholders of a small corporation often serve as its Directors and ofﬁcers as well. One person can hold more than one office at the same time (in a 1 person corporation the owner can be the President, Secretary and CFO at the same time). The directors are elected by the shareholders and typically make the major decisions for the Corporation, while the ofﬁcers handle the day to day operations.

III. You have to Practice good “Corporate Housekeeping” and Keep your Corporation Organized and Updated

In order to remain in good standing, a Corporation in California must meet certain requirements on an annual basis. The basic requirements are 1) Timely ﬁling of returns and paying the taxes owed by the Corporation; 2) Holding annual meetings of the shareholders and directors and keeping a written record of those meetings called “Minutes”; and 3) Filing an annual “Statement of Information” with the Secretary of State listing the Corporation’s current address, directors and ofﬁcers. The identity of the shareholders need not be disclosed. Failure to maintain these formalities may cause your corporation to have its powers “suspended” and be unable to prosecute or defend a lawsuit among other consequences.

IV. What’s the difference between a “S” Corporation and a “C” Corporation?

The only difference is in how the two types of corporations are

taxed. The IRS will automatically tax your corporation as a “C” corporation unless you ﬁle a form with the IRS called an “S Election”. If you timely ﬁle the form and the IRS accepts it, you will be taxed as an S Corporation instead.

A C corporation is taxed at the corporate income tax rate on its profits and has to pay taxes separately from its owners. The owners also pay taxes when they ﬁle their individual Form 1040 tax returns. Besides paying dividends, the only way to get money out of

a C Corporation is to take a salary from your corporation. After all its debts and taxes are paid, a C Corporation can retain any proﬁts it makes in the Corporation.

On the other hand, an S corporation pays no taxes at the corporate level. After you pay yourself a “reasonable” salary, if there are any proﬁts left over they are passed through to the shareholders in proportion to their percentage of ownership, and each shareholder must report any proﬁts received and pay the tax owed when they

ﬁle their individual 1040 return.

There is no point in leaving any of the proﬁts in the corporation since you will be taxed on them at the individual level whether or not they are taken out of the corporation’s coffers.

Forming a corporation is an important decision and should be well thought-out. It’s not for everyone, but it could be the right decision for you and your business.

David Zeligs is the Legal Advisor at the Long Beach Small

Business Development Center (SBDC). Hosted by Long Beach City College, the SBDC is a group of successful small business owners helping fellow entrepreneurs start, sustain, and grow their business through low-cost workshops and free one-on-one consulting in business planning, finance, marketing, and various other specialty areas (Spanish speaking consultants available). To make an appointment call: (562) 938-5100, or email: sbdcinfo@lbcc.edu.