California Company Formation

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.

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.

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.

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.

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.

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.

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.

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.