How do I incorporate a city in California?
I've founded more startups than I can remember, and advised hundreds. · 1y

To initiate an application to incorporate a new city in California, having identified proposed boundaries that contain at least 500 registered voters, you start with one of the following:

  • A petition signed by at least 25% of the voters within the city
  • A petition signed by people owning land that comprises at least 25% of the assessed value in the city
  • A resolution adopted by a legislative agency that has land or a sphere of influence within the city

This gets submitted to the Local Agency Formation Commission (LAFCO) of the county in question, which initially reviews the request and certifies it as complete or sends it back for updates and corrections.

The application itself consists of:

  • A narrative description of the proposal, the reason, a statement of concerns or problems with the current state of governance, a history of the region, and demographic, geographic, and economic data.
  • A Service Plan describing which agencies currently provide services to the city (e.g. police, fire protection, planning, public works, parks and recreation, libraries, animal control, water and sewers, street lighting, water and sewer, trash, flood control, social services, etc.) , the services provided, and proposed changes
  • A map and legal description of the boundaries
  • An application fee

The local LAFCO then prepares a Comprehensive Fiscal Analysis (CFA), and a review of services, holds a public hearing, and then reviews the merits of the application. The review includes things like environmental effects and environmental justice, fiscal and budgetary matters (anticipated tax revenues and expenditures), revenue neutrality (the cost to the county for supporting the city must be offset by savings from reduced service requirements). An environmental impact report may be required, and there may be a negotiation process.

The LAFCO executives officers then prepare a report, and a recommendation for approval including terms and conditions for the approval. Various parties may request a review by the California State Controller. The full LAFCO commission either rejects or approves the proposal with conditions, after which there can be requests for reconsideration and protest hearings.

Finally, if the proposal is approved it is placed on the ballot for approval by the voters in the proposed city, usually at the next general election. If the voters approve, the LAFCO prepares a Certificate of Completion, upon which the new city is official.

Somewhere in the process, somebody has to agree on a name.

Each LAFCO may establish its own rules and procedures, and may require additional parts in the application. It is strongly recommended that proponents consult the LAFCO before beginning the process and not wait until submitting the application.

Here is a guide to the process.
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Former Senior Marketing Director (2003–2017) · Upvoted by , lived in San Francisco (1987-2018) · 4y

For coolness it's hard to beat Cool itself.

It's in El Dorado County on Highway 49 between Auburn and Placerville


No I don’t believe so and here are the reasons why:

  • location - The high desert is not a desirable place to live. Deserts in general are not considered to be desirable. The climate isn’t that great and the town itself is very barren. Also there are other areas nearby that are more desirable like Tehachapi, Lancaster, Palmdale, Ridgecrest, and Bakersfield. These areas are more developed and thus attract new residents that relocate to Kern County/Antelope Valley. Cal City does not stand out in the region and does not offer anything unique.
  • size - Cal City is small, population wise. It has a populat
Advised hundreds & started a few myself · Upvoted by , Co-Founder, Elevation Partners and , Founded six startups, two angel groups, three funds, and funded 100+ ventures. CEO of Gust, Founder of New Yo… · 8y

This has been answered many times on Quora and all over the web so it may be merged in, but:

  • If you are planning on investors and others from states beyond California you need a common ground, and Delaware is the accepted common ground.
  • Delaware law and procedures are much better all around in the various rules for companies, from the beginning through later stage. One early stage example is that Delaware permits fully uncertificated shares and cloud storage of all corporate records. California still has some requirements for wet signatures, paper stock certificates, and hauling the (mostly fi
Co-Founder @ | Legal Made Easy., Former big-law M&A attorney · 5y

As others have pointed out, a California licensed attorney that is a business/startup attorney can help you form the Delaware corporation. Incorporating itself is a relatively simple process (which most attorneys should competently be able to do for you). When you do form your corporation, you will also want to think through a few other considerations (some of which may or may not be relevant to you):

  1. Do you have multiple founders? If so, it would be prudent to enter into a founders agreements. This agreement, will among other things, set forth roles & responsibilities, IP assignment, capital

"Best" is too generic an adjective to be useful in defining such a large and populous state. Best what? The biggest? The most expensive to live in? The safest? The most RE for your $$$? The shortest commute? Are you talking restaurants, specific kinds of shopping, sports, hiking, boating, tanning, or ???? Did you want low-key small towns or big-city amenities?

Be a little more specific, and the conversation will become a lot more interesting.

Entrepreneur, Angel Investor, Founding Finance Chair at Singularity University · 5y

There are two different sets of answers, depending on the intent of the question.

If the question is where to start and operate a new business, the answer depends on economic factors such as the type of business you want to start, the economy in the state, the local market, the availability of skilled employees, etc. You wouldn’t start a fishery in Ohio, or a tobacco farm in Alaska.

If the question is where to incorporate a new high-growth business regardless of where it is located, the answer is "Delaware".

I'm addicted to them... currently on the Ramen diet... · Upvoted by , Lawyer for startups in or coming to the U.S. · 11y

Yes, investors do care. Delaware is much more preferable for the long term and if you are going to raise venture capital. When I was working in venture capital at a Boston based firm, we required companies that were incorporated in California to reincorporate in Delaware . That said, the incorporation location is not a deal breaker for VCs if the company is worth funding.

The main reason VCs prefer Delaware is around the stockholder voting rights necessary to sell a company. California corporate law requires the approval of a majority of the outstanding shares of each class of the corpo

Athletic Court Contractor (2010–present) · 2y

Coming in with a temperature high of 134 degrees (Fahrenheit)- which was recorded in 1913- not only the current title holder for hottest place in California, but also the hottest place on Earth- the place people with low gas tanks everywhere want to avoid- The one...the only....Death Valley!

(If you read this please imagine Michael Buffer's it sounds like "Deaaaath Valllleyyyy")

These two questions, together, are quite confusing - in part, it appears, because of use of incorrect terminology.

I believe that the answer to the first question is straightforward: Yes, LLC B can be a member of LLC A.

However, the second question creates confusion because it introduces the term "assignee" without explaining what has been assigned.

If "assignee" means "member", then LLC B, itself, would indeed be the member.

Of course, an individual needs to act on behalf of an LLC. So, for example, if LLC B needed to sign LLC A’s operating agreement, then LLC B’s manager would sign the operating

Originally Answered: Should I incorporate in Delware if I operate in California?

As a practical matter, the only reason a California startup should form a legal entity in Delaware is because the founder expects to seek institutional (e.g., venture capital) investment.

However, because institutional investors invest almost exclusively in corporations, and you are forming a limited liability company (LLC), you evidently are not planning to seek institutional investment.

Accordingly, you should form your LLC in California. If you form it in Delaware, you will need to qualify it to do business in CA anyway - meaning that up-front, and forever after, you will be paying two states


If the investments are physical assets, (equipment, real estate etc.) set up the LLC in the state where the assets are located. If the investments are monetary assets, (stocks, bonds, etc.) set up the LLC in California where the owner is located.

It is not a matter of which state is the cheapest to form an LLC in, but how many states do you wish to have ongoing tax reporting and compliance in. The initial registration cost is easily offset by a year or two of annual reporting cost.

If you are actually operating IN California, it doesn’t matter in what state you are incorporated. You will still need to file a "Foreign Qualification" in California and pay annual taxes in both states.

The city of Pacifica was incorporated in 1957, from nine small unincorporated communities within San Mateo County.

It is really not important at all; a small town/bedroom suburb of 35–40,000 people in a state of over 34 million, and best known, if known at all, as a sightseeing tourist destination and surfing destination.