How we Form a California Business
We have prepared a number of helpful tips and suggestions for those looking to form a California LLC or a California corporation. Prior to filing your articles or incorporation or articles of organization, we do a preliminary name search - which is included in our ordering process. This must be done because you can waste valuable time if you submit a filing for a company name that is not available. While a name reservation is not always necessary, we do preliminary name research prior to submitting any of our filings.
Types of California Structures
California has numerous types of business structures that can be setup by a new business. Choosing the best type of structure for your business is not easy, but we provide you with some basic information about the different types of business structures. An important consideration for a small business owner is the concept of limited liability. In the state of California, limited liability can be obtained by forming a corporation or an LLC. Both entity types are created by filing 'articles' with the California Secretary of State. The process for submitting a California filing is to prepare the initial articles, submit the forms, and pay California the required fees. Once your articles have been approved in California your new legal business entity has been formed.
Subsequent Filing Requirements
In the State of California, both LLCs and corporations are required to file a Statement of Information annually. The Statement is required to be filed with a $25 fee and it is submitted directly to the Secretary of State. There is a penalty for filing this statement late, so make sure that you file it on time.
The Statement updates the state with current director, member, officer, address, and registered agent information. The Statement is easy to prepare and you mail it directly to the state. It can also be submitted online (for corporations only).
California Secretary of State
California Secretary of State Document Filing Support Unit P.O. Box 944228 Sacramento, CA 94244
Notes for your California Business
With our help, filing for an entity in California is not as difficult as it may seem, but once your company has been approved there are many state, federal and local guidelines that you must follow. Some notes to remember are listed below
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An attorney is not required to form either an LLC or corporation in California.
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Foreign corporations must register in California based on corporations code of Section 191
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California defines a registered agent as "an individual (director, officer or any other person, whether or not affiliated with the corporation) who resides in California or another corporation designated by the corporation to accept service of process if the corporation is sued." To read more about registered agents in California you can view corporations code Section 1505
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Normal filing times in California vary from 1 month - 2 months depending on the amount of articles submitted and pending in the State queue. We do offer expedited filing times in California which are typically completed within 10 business days.
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California does have an $800 minimum franchise tax. Information on California about the franchise tax and other notes on California are available. |