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California Company Formation

California LLC Formation

California Corporation Formation (C-Corp & S-Corp)

California is the 31st of the United States of America. The East of the state is the state of Nevada and Arizona, the West is the Pacific Ocean, the North is the state of Oregon, and the South is the Mexican state of Baja California.

Thus, is sought after by worldwide businesses but not many businesses are able to enter this lucrative market due to the complication of different regulations among different states of the USA; and the procedures to enter the US market.

The economy of California is the largest of any states in the United States, contributing $3.2 trillion gross state product in 2019. California would be the 5th largest economy in the world if the state stands alone as a country.

The economy of California is varied with many sectors from finance, business services, to government and manufacturing. Most of the economic activity is concentrated in coastal cities such as Los Angeles, the San Francisco Bay Area, and San Diego. These cities act as significant trade hubs to and from the United States.

California company registration

Benefits of California company registration

  • Tax Flexibility
  • Capital Gains Exemption
  • Small Business Tax
  • Transparency& Accountability Enforcement
  • Providing Anonymity To The Owner

California Company Registration

  California Limited Liability Company (LLC) California Corporation (C- Corp and S-Corp)
Corporate Tax Rate

The corporations need to file a Statement of Information annually during the first 6 month period ending on the last day of the anniversary month of the incorporation.

The Annual Franchise Tax is US$ 800 for minimum and the due date will be 15th of the third month after the close of the year. However, the LLC companies are exempt from this tax for the first year.

Federal tax identification number (EIN): If the company has employees, EIN is required. Moreover, it is necessary to open a business bank account in California.

Company Name

The name of each limited liability company as set forth in its certificate of formation: Shall contain the words "Limited Liability Company" or the abbreviation "L.L.C." or the designation "LLC".

May contain the name of a member or manager.

The name of company formation in California must end with “Incorporated,” “Corporation,” “Company,” or an abbreviation of like import from other languages.

If the business owner wants to use the words “Bank,” “Banc,” “Trust” or “Trustee,” he should have approval from the Superintendent of Bank.

Board of Directors

At least one person for a manager/member for LLC.

California does not require a minimum age or residency for managers/members.

Need to state the number of managers that will constitute the corporation’s board of directors to the government.

A corporation must have at least three directors, unless there are less than three shareholders. In that case, the number of directors may be equal to or greater than the number of shareholders

Other requirement

California LLCs are required to appoint a registered agent (called an “agent for service of process” in California) to accept legal mail on behalf of your business. The business owner will need to have his registered agent’s information ready to go before he completes his formation documents.

A California registered agent must:

  • Have a physical street address
  • Keep regular office hours
  • Agree to accept (and forward!) legal mail on your behalf.

Officers: The Articles of Incorporation does not record names and addresses.

Stock: the information about authorized shares and the number of shares or par value will be listed in the Certificate of Incorporation

Registered Agent: The LLC must have a physical address in California to receive legal and tax documents for the business.

California Company Registration with 4 Easy Steps

California Company Registration with 4 Easy Steps - Preparation

1. Preparation

One IBC Group will consult you on the suitable type of company with three proposed names that matches your business activity and needs

California Company Registration with 4 Easy Steps - Filling

2. Filling

All documents requirements about information of the Manager, Member(s), and the share ratio.

California Company Registration with 4 Easy Steps - Payment

3. Payment

Several payment methods are available to the client:

  • Credit/Debit card (Amex, Mastercard, Visa)
  • PayPal
  • Wire transfer
California Company Registration with 4 Easy Steps - Delivery

4. Delivery

After the application process is completed and successful, we will send you the notification of the result via email. Furthermore, the physical copy of the company kit will also be sent to your provided address via postal mail (DHL/ TNT/ FedEx).

Cost of incorporating in California, USA

From

US$ 690 Cost of incorporating in California, USA
  • Done within 2 working days
  • 100% successful rate
  • Fast, easy & highest confidential
  • Dedicated support (24/7)
  • Just Order, We Do All For You
Limited Liability Company (LLC) From US$ 690
Corporation (C- Corp and S-Corp) From US$ 790

 

Recommended services

California Company Formation with the main characteristics

Limited Liability Company (LLC)

General Information
Type of Business Entity Limited Liability Company (LLC)
Corporate Income Tax 8.84%
British Based Legal System No
Double Tax Treaty Access No
Incorporation Time Frame (Approx., days) 2 - 3 working days
Corporate Requirements
Minimum Number of Shareholders 1
Minimum Number of Directors 1
Corporate Directors Permitted Yes
Standard Authorized Capital/Shares N/A
Local Requirements
Registered Office/ Registered Agent Yes
Company Secretary Yes
Local Meetings No
Local Directors / Shareholders No
Publicly Accessible Records Yes
Annual Requirements
Annual Return Yes
Audited Accounts Yes
Incorporation Fees
Our Service Fee (1st year) US$ 690.00
Government fee & Service charged US$ 450.00
Annual Renewal Fees
Our Service Fee (year 2+) US$ 590.00
Government fee & Service charged US$ 450.00

Corporation (C-Corp or S-Corp)

General Information
Type of Business Entity Corporation (C-Corp or S-Corp)
Corporate Income Tax 8.84%
British Based Legal System No
Double Tax Treaty Access No
Incorporation Time Frame (Approx., days) 2 - 3 working days
Corporate Requirements
Minimum Number of Shareholders 1
Minimum Number of Directors 1
Corporate Directors Permitted Yes
Standard Authorized Capital/Shares N/A
Local Requirements
Registered Office/ Registered Agent Yes
Company Secretary Yes
Local Meetings No
Local Directors / Shareholders No
Publicly Accessible Records Yes
Annual Requirements
Annual Return Yes
Audited Accounts Yes
Incorporation Fees
Our Service Fee (1st year) US$ 790.00
Government fee & Service charged US$ 550.00
Annual Renewal Fees
Our Service Fee (year 2+) US$ 690.00
Government fee & Service charged US$ 550.00

Scope of Services

Limited Liability Company (LLC)

1. Company Formation Service Fee

Services and Documents Provided Status
Agent Fee Yes
Name Check Yes
Preparation of Articles Yes
Same-day Electronic Filing Yes
Certificate of Formation Yes
Digital Copy of Documents Yes
Digital Corporate Seal Yes
Lifetime Customer Support Yes
One Complete Year (12 Full Months) of California Registered Agent Service Yes

2. Government Fee

Certificate of Incorporation Status
Submission of all documents to the Financial Services Commission (FSC) and attending to any clarifications on the structure and applications required. Yes
Submission of application to the Registrar of Companies Yes

To incorporate a California company, the clients is required to pay the Government Fee, US$ 450, including

  • Government Filling cost: US$ 90
  • Registered Agent Fee for 1 year: US$ 360

Corporation (C-Corp or S-Corp)

1. Company Formation Service Fee

Services and Documents Provided Status
Agent Fee Yes
Name Check Yes
Preparation of Articles Yes
Same-day Electronic Filing Yes
Certificate of Formation Yes
Digital Copy of Documents Yes
Digital Corporate Seal Yes
Lifetime Customer Support Yes
One Complete Year (12 Full Months) of California Registered Agent Service Yes

2. Government Fee

Certificate of Incorporation Status
Submission of all documents to the Financial Services Commission (FSC) and attending to any clarifications on the structure and applications required. Yes
Submission of application to the Registrar of Companies Yes

To incorporate a California company, the clients is required to pay the Government Fee, US$ 550, including

  • Government Filling cost: US$ 90
  • Registered Agent Fee for 1 year: US$ 460

Download forms - California Company Formation

1. Application Formation Form

Description QR Code Download
Application for Limited Company
PDF | 1.41 MB | Updated time: 06 May, 2024, 16:50 (UTC+08:00)

Application form for Limited Company processing

Application for Limited Company Download
Application Formation Form LLP LLC
PDF | 2.00 MB | Updated time: 06 May, 2024, 16:57 (UTC+08:00)

Application Formation Form LLP LLC

Application Formation Form LLP LLC Download

2. Business Plan Form

Description QR Code Download
Business Plan Form
PDF | 654.81 kB | Updated time: 06 May, 2024, 16:59 (UTC+08:00)

Business Plan Form for Company Incorporation

Business Plan Form Download

3. Rate card

Description QR Code Download
California (C-Corp or S-Corp) Rate card
PDF | 573.40 kB | Updated time: 31 Dec, 2020, 11:33 (UTC+08:00)

Basic Features and Standard Price for California (C-Corp or S-Corp)

California (C-Corp or S-Corp) Rate card Download
California LLC Rate card
PDF | 571.76 kB | Updated time: 31 Dec, 2020, 11:33 (UTC+08:00)

Basic Features and Standard Price for California LLC

California LLC Rate card Download

4. Company Profile

Description QR Code Download
Company Profile
PDF | 3.31 MB | Updated time: 30 Sep, 2024, 12:46 (UTC+08:00)

Discover our company profile to gain a deeper understanding of who we are

Company Profile Download

5. Sample Documents

Description QR Code Download
FAQs

Company Formation Frequently Asked Questions (FAQs) - California Company Formation

1. What is a foreign corporation in California?

A foreign corporation in California is simply a corporation that was established outside of California but has registered with the California Secretary of State to do business in California. To register a foreign corporation in California, you’ll need to appoint a California registered agent and file the correct form.

  • Most foreign corporations in California (including nonprofits) will file the Statement and Designation by Foreign Corporation (Form S&DC – S/N).
  • Foreign professional corporations that practice law or accountancy will need to file Form S&DC-PC.
  • Foreign corporations in California that provide insurance services should use Form S&DC-INS.
2. Do foreign corporations in California need a registered agent?

Yes. Any foreign business in California is required to appoint and maintain a registered agent. The registered agent must have a physical street address in California, keep regular business hours, and agree to accept legal mail on behalf of your corporation.

Registered Agents have a significant role in shaping the company's business in California, they will consult you in tax planning and legal matters, this may relate to supporting, maintaining and advising your company from time to time and dealing with matters during the lifetime of business. A foreign corporation in California must choose the best agent to serve and contribute to the growth of business.

3. What are the benefits of registering a business in California?

Registering a business in California is the first step of structuring your business towards success. Successful businesses are built through careful planning. A company registered in California would be beneficial in many ways, especially for small businesses in California:

  • Protect business against lawsuits.
  • Make your business become more credible to customers.
  • Expand business towards the biggest free-trade center of the world.
  • A California corporation provides anonymity to the owner.
  • Attractive tax regime in the state.
4. How to start a small business in California in 5 steps:

Step 1

Create a business plan.Start by doing market research and write a business plan including: marketing, finance, product or service then choose the most suitable company structure.

Step 2

Choose a location. When starting a small business in California, picking the right location is very important because each city/county has different laws and regulations.

Step 3

Get an Employer Identification Number (EIN). The company cannot open a bank account or file for tax without an EIN. One IBC® service covers both EIN and also Individual Taxpayer Identification Number (ITIN).

Step 4

Apply for licenses. Company needs proper licenses to operate and many banks will ask for this during the application process. Consult One IBC® licensing service for a full guidance on which type and how to apply.

Step 5

Open a bank account. OneIBC has a list of available worldwide banking partners ready to help any customer who wants to start a company in California.

5. How to incorporate a company in California?

Step1

Make a business plan. To start a company in California, it is not required but a proper plan will be of help later on. Banks and Investors will also want to read this plan when assessing the company.

Step 2

File Article of Corporation. This is the legal paper to register for a company in California. It includes basic information of the business and its board of directors and should be submitted to the Secretary of State.

Step 3

Submit Statement of Information. This has to be done within 90 days of the Article of Corporation.

Step 4

Apply for an Employer Identification Number (EIN). One IBC® service assists with EIN and also helps with Individual Taxpayer Identification Number (ITIN).

Step 5

Apply for Licenses and Permits. Consult with One IBC® to know which one is needed and how to apply correctly.

Step 6

Open a Bank Account. The business plan, incorporation documents and other papers that the bank wants have to be presented. Some banks also ask for a face to face interview during the application process.

Step 7

Fulfilling non-urgent requirements. After starting a business in California, the company should draft a bylaw, hold a company meeting, get a lawyer, etc.

6. How to register a name for your foreign business in California?

Step 1

Name availability check. When determining name availability, names are checked only against names of like entities registered with the California Secretary of State. A name can be reserved for 60 days.

Step 2

Name registration for foreign company. If a name is available for registration, businesses can register the corporate name with the Secretary of State by filing form Foreign Name Registration to protect it for further use. The registration is effective until the close of the calendar year in which the application for registration is filed.

Step 3

Renew the name for your foreign business in California. A corporation may renew its name registration by filing a new form between October 1 and December 31 of each year. The renewal, when filed, extends the registration for the following calendar year.

Step 4

Obtain a certificate by an authorized public official of the state or place of incorporation. To the effect that the corporation is an existing corporation in good standing in that state or place, must be attached to the Registration of Corporate Name by Foreign Corporation form by the time of filing with the California Secretary of State.

7. How much does it cost to start a corporation in California?

The numbers below are for reference and only at state level

  • Company name reservation: Minimum of US$10 and US$10 special handling fee.
  • Incorporation filing: Company Detailed Information report costs US$25 plus $75 service fee. Then there is the Incorporation Filing with US$100 fee and US$15 for handling.
  • Appoint a registered agent: doing business in California requires a registered agent to handle legal matters. As an authorized agent, One IBC® can act as an agent for the customers.
  • Business License: The average for a small business is US$50-US$100. However, extra fees may occur based on your location and industry.
  • Ongoing Fee: Annual Report Filing Fee is US$25.
  • Annual tax: There is a minimum of US$800 no matter what for corporation and payroll taxes at US$100, which is compulsory even if the company is not hiring any employee.
8. How much does an LLC costs in California?

The numbers below are for reference and only at state level

  • Reserving Business Name: Minimum of US$10 and US$10 special handling fee.
  • Incorporation Filing: Company Detailed Information report’s fee is US$25 plus US$75 service fee. Then there is the Incorporation Filing with US$100 fee with US$15 handling fee.
  • Business License: The average for a business is US$50-US$100 but extra fees may occur based on location and industry.
  • LLC Fee: US$85 is the initial cost of starting a business. In California, the Statement of Information (US$20) is required to be submitted within 90 days of formation.
  • Ongoing LLC Fee: The annual US$800 fee is due within 3.5 months of forming and then every April 15th thereafter. This is the cost of doing business in California uniquely for LLC.
  • Other Ongoing Fee: Annual Report Filing Fee is US$25 and Annual Tax Fee is at US$800 minimum.

Select Your State Below

View more detailed information on Incorporation requirements

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