A. File Artcles of incorporation for California Corporation with the Secretary of State
After choosing which entity is right for you, your next step is to go to the California Secretary of State's website and download the appropriate incorporation form that may be available. Or, if you don't want to do the work yourself, we can help you incorporate a business in California. Click here for a free quote on our California business incorporation services.
B. Employer Registration Forms
If your corporation or LLC will have employees, you must file an Employer Registration application file the Employer Registration form with the Employment Development Department. For more information and to download the form, go to http://www.edd.ca.gov/taxrep/taxreg.htm. or call 916-654.8706.
C. Get Your Federal Tax ID Number
If you have Clickandinc.com incorporate your business in California, as part of the process we can draft the federal tax id form (EIN application) for you. Or, if you want to spend some time on your own, you can easily download the necessary forms on the IRS website.
D. S Corporation Filings (not applicable to LLCs)
1. Federal S-Corporation Election Form
If you have Clickandinc.com incorporate a business for you in California, and you choose to be treated as an s-corporation for federal income tax purposes, we can draft that form for you (IRS form 2553). If you choose to draft it on your own, you can download it from the IRS website.
NOTE: You have 75 days from the date you incorporate a business in California to file your form 2553 with the irs. If you fail to file in that time period, you will not be granted s-corporation status for the year in which you incorporate.
NOTE: YOU HAVE 75 DAYS FROM THE DATE OF INCORPORATION TO FILE YOUR FORM 2553 WITH THE IRS. IF YOU FAIL TO FILE IN THAT TIME PERIOD, YOU WILL NOT BE GRANTED S-CORPORATION STATUS FOR THE YEAR IN WHICH YOU INCORPORATE.
2. California S Corporation Election or Termination/Revocation Form 3560
E. Franchise Tax
All California corporations and LLCs are required to pay a minimum franchise tax each year for the privilege of “exercising the corporate franchise in California.” However, all new entities are exempt from paying this minimum tax for the first year.
The Franchise Tax Board will mail the forms to your corporation or LLC. The minimum tax is $800.
For more information about the franchise tax, log on to www.ftb.ca.gov
F. Seller’s Permits
A seller’s permit is required if you are engaged in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail.
You can file a brochure online that will help you determine if you need a seller’s permit (www.boe.ca.gov/pdf/pub73.pdf). You can also call 800-400-7115 for more information.
G. Business Licenses
Depending on the county and city in which your business is operated, you may need to file various business license applications. GetABusinessLicense.com can provide you all the applications you need affordably and quickly. To learn more about business license requirements for your California business go to http://getabusinesslicense.com/states/Business_Licenses_in_California.asp,
The items above may not be an exhaustive list of the requirements for operating a corporation or llc in California. You should check with the appropriate state, county and city officials to find out the most current requirements for operating your California corporation or llc.
Surely, the list above is not everything you will need to do once you incorporate a business in California. You should always check with your accountant or attorney in order to make sure you are compliant with all state laws. Clickandinc.com is not a law firm and nothing on this page can be considered legal advice on which you can rely.
If you’d like Clickandinc.com to help you incorporate a business in California, we’d love to help.
