Proper purpose of corporation in CA?

Asked over 2 years ago - Temple City, CA

Dear professionals,

I, myself, plan to incorporate a C Corp in CA. The name may be “ XXXX college” because I want to set up a language school. In the articles, can I still use the general purpose of the corporation? Like:

“The purpose of the corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of California other than the banking business, the trust company business or the practice of a profession permitted to be incorporated by the California Corporations Code.”

Or do I have to limit the purpose to education only?

Thanks.

Attorney answers (3)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    8

    Lawyers agree

    Answered . In your Articles of Incorporation, you do not have to limit the purpose of the corporation to just education.

    Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in... more
  2. Michael Charles Doland

    Contributor Level 20

    6

    Lawyers agree

    Answered . The general purpose you cite is acceptable, and does not need to be limited to education. We represent at least one language school. If you are seeking "outside general counsel" on future matters, you may contact us through our AVVO profile.

    The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may... more
  3. Robin Mashal

    Contributor Level 19

    6

    Lawyers agree

    Answered . Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

    I agree with my colleagues. To operate a school, the general purpose clause in the articles of incorporation would be fine. Limited purpose is used for specialized corporations such as banking, professional corporations (practice of law, medicine, dentistry, etc.). However, keep in mind that schools in California are regulated by the California Department of Education. Be sure to consult your own attorney to protect your legal rights.

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