|California Corporation Benefits|
|Well-Defined Business Structure||California corporations have a well-established business structure and chain of command. Officers attend to the daily operations of the corporations, while the board of directors controls company-wide decisions.|
|California Corporate Tax||California does have some of the nation’s highest taxes, including an 8.84% corporate income tax. Double taxation of corporations means that a corporation must pay income tax on its profits and its shareholders in California are subject to individual state income tax on dividends. Individuals pay income tax rates of up to 12.3%. Most
California corporations also must pay the $800 minimum annual franchise tax.
|Strong Asset Protection||California’s Corporations Law allows one or more persons to form a California corporation. One individual may be the director, shareholder, and officer of the corporation. Forming a California corporation creates a new and separate legal entity. California corporations also have a long history of case law and provisions that provide extensive protections to shareholders, limiting their personal liabilities.|
|Investor Usability||Forming a California corporations is a great way to make your business more attractive to investors. A corporation can sell stocks and shares to raise capital. Potential company investors will likely be familiar with and feel comfortable investing in a California corporation.|
In California, corporations are formed by filing a formation document called the Articles of Incorporation with the Secretary of State.
California Articles of Incorporation can be filed by mail or in person. Normal processing of mailed documents can take up to 2 months. In person filings are expedited for an additional fee.
If you don’t want to form the corporation yourself, you can hire us to form a California corporation for $99 plus state fees.
|California Incorporation Costs|
|Filing Fee||$100 paid to the California Secretary of State|
|Expedite Fee||$15 fee for approximately 20 day service (in person drop off only);
$350 for 24 hour service;
$500 for 4 hour service;
$750 for same day service
|California Corporation Maintenance Fees|
|Initial Report||$25 Initial Statement of Information fee (must be filed within 90 days of incorporation)|
|Annual Statement of Information||$25 Annual Statement of Information (must be filed every year by the end of your incorporation anniversary month)|
|California Franchise Tax||$800 minimum payment (must be paid annually; required for every business)|
California corporations are not required to adopt bylaws. However, bylaws are an enormous benefit in governing a corporation. If a corporation were a state, the bylaws would be the state laws. Corporate bylaws are the rules by which the corporation settles shareholder disputes, distributes profits and losses, and deals with many other common corporate issues. Organizational documents, including corporate bylaws, come with every IncFast package.
It is pretty easy to go online and form a California corporation. But there is much more to setting up a California corporation that works. Do you have a plan for meeting California’s statutory requirements for corporations? Do you know what to do in the event of a shareholder dispute? Your bylaws should address these issues. Corporate resolutions, bylaws, and stock certificates are also necessary to do things like open a business bank account. Simply forming a corporation isn’t enough. You want to form a successful corporation. Important business transactions will require you to show that you are authorized to deal on behalf of the corporation. This is another reason resolutions and bylaws are so important. When you hire IncFast to form your California corporation, we provide all the business documents you need.
Every IncFast order also includes the following: