Your California Company Formed By:
California Business Overview
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.
Doing Business in California
All California Corporations and LLCs Must File:
- Articles of Incorporation
File your Articles of Incorporation or Articles of Organization with the California Secretary of State and pay the filing fee. Online filings take 5 business days for both LLCs and corporations. California will process business formation documents hand-delivered to its Secretary of State’s Sacramento office in around 3 business days if you pay a $15 counter drop-off fee. You can also pay the state $350 for 1-day expedited processing.
- Initial Statement of Information
California corporations and LLCs must file the Initial Statement if Information within 90 days after formation. The initial fee is $25 for corporations or $20 for LLCs.
- Subsequent Statement of Information
California business entities, including corporations and LLCs, have to file additional Statements of Information to stay compliant. California corporations must file and pay the $25 fee every year. California LLCs pay $20 and file the statement every other year.
California Business Taxes
Personal Income Tax
The maximum California individual income tax rate is 12.3%.
Corporate Business Tax
The tax rate for California corporations is 8.84% on taxable income.
California Franchise Tax
The minimum tax is $800.
California Business License
California does not require a state business license. We do suggest using CalGold to find out which local licenses and permits you will need.