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.

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.

How to start a small business in California in 5 steps:

Step 1Create 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 2Choose 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 3Get 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 4Apply 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 5Open 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.

How to incorporate a company in California?

Step1Make 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 2File 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 3Submit Statement of Information. This has to be done within 90 days of the Article of Corporation.Step 4Apply for an Employer Identification Number (EIN). One IBC service assists with EIN and also helps with Individual Taxpayer Identification Number (ITIN).Step 5Apply for Licenses and Permits. Consult with One IBC to know which one is needed and how to apply correctly.Step 6Open 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 7Fulfilling non-urgent requirements. After starting a business in California, the company should draft a bylaw, hold a company meeting, get a lawyer, etc.

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

Step 1Name 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 2Name 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 3Renew 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 4Obtain 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.

Is California good for business? Benefits of registering a company there

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.

Related FAQs

1. What is a foreign corporation in California?
2. Do foreign corporations in California need a registered agent?
3. How to start a small business in California in 5 steps:
4. How to incorporate a company in California?
5. How to register a name for your foreign business in California?
6. How much does it cost to start a corporation in California?
7. How much does an LLC costs in California?

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