Incorporate in California
Incorporate for only $75.00 plus State Fees
We offer our clients an incorporation package that includes:
As local business filings experts with two decades of experience, we have the entire process streamlined and can help you incorporate in California immediately. We do everything listed above and then some, ensuring that you have what you need to to maintain your corporation and establish a professional business reputation. And if you need a registered agent, we offer those services for only $50 per year.
Need more business services? We offer even more inside our clients’ accounts, including a California Virtual Office for $19 / month and DBAs under our “Trade Name Service” for $100 plus state fees. We can be your one-stop shop for your entire business identity.
How to Incorporate in California
Incorporating in California takes a few simple steps:
- Name your California Corporation. This name should be unique and end with an approved variation of “corporation.” You also cannot use a corporation name that misleads the public (e.g., adding “lawyer” or “doctor” to your business name when your business is not involved with either occupation).
- Appoint a Registered Agent. Your registered agent (or “agent for service of process” as they’re called in California) must maintain a physical address in California and be available to accept and forward legal mail on your behalf during regular business hours.
- Submit Your Articles of Incorporation. You’ll provide basic information such as your company name and business address, along with paying state fees. Remember that this information is public, which is why it’s crucial to hire a registered agent who can list their information and business address, not yours.
- File Your Beneficial Ownership Information (BOI) Report. Beginning January 1, 2024, most companies that do business in the US are required to submit a BOI to the Financial Crimes Enforcement Network (FinCEN). The BOI report asks for company information and information about “beneficial owners” (those who either substantially control of benefit from the company) and company applicants. The online filing is free of charge, and the information you submit is not available to the general public. If you started your company in 2024 or after, you have 30 days from formation to file. Companies formed prior to 2024 have until the end of 2024 to file and don’t need to provide company applicant information.
- File initial Statement of Information. After registering your corporation, you have 90 days to file your initial statement of information. The state filing fee is $25 ($20 filing fee and a $5 disclosure fee), and you will need basic information about your business such as your corporation name and your 12-digit SOS filing number).
After that, you’ll maintain your California corporation by obtaining an EIN, opening a California business bank account, paying your annual franchise tax, and submitting your biennial statement of information. If you want to skip all the above paperwork and have local filing specialists start your corporation, hire us today. We also provide a secure online account through which you have access to state corporation documents. That’s also where you’ll receive compliance reminders for all the little odds and ends of California bureaucracy.
Benefits of Starting a California Corporation
You can benefit from starting a California corporation, even if you are a big business. It may be a surprise to learn that many corporations are small. In fact, the benefits of incorporating in California outweigh the benefits of being a sole proprietorship. Opting to file as a corporation is cost and time efficient.
The main benefits of starting a California corporation are as follows:
- Your business debt risk is lowered. If you run a general partnership or a sole proprietorship, your debts accumulate. You are personally liable for your business debts, which puts your personal property at risk. But when you choose to incorporate your business, your assets are much more safe because the corporation provides its owners, or shareholders, with coverage of limited liability protection. In other words, the corporation owner’s personal obligation for the debt greatly decreases and stops any creditors from possibly seizing any of your personal assets, such as your home, property, etc., in order to satisfy any business debts.
- Savings on taxes. Your tax advisor or personal accountant can inform you regarding tax benefits for corporations. As an example, corporate income is exempted from life insurance and Social Security, as well as not being liable for Workers’ Compensation. Furthermore, corporations can enjoy the benefit from health insurance deductions on health insurance payments made by the shareholder/owner.
- Extensive duration. The lifetime of corporations is most likely longer than the life of a sole entrepreneurship. In cases where the controlling shareholder(s) sells the business interest, the corporation can still continue to do business. In fact, the life of the corporations is independent of the shareholder(s), even after the death of the shareholder(s).
- Greater credibility. When establishing a new business venture, credibility is an issue of important with potential partners, staff, clients, and suppliers. Credibility is achieved easier for corporations as opposed to sole proprietorships, as well as companies and partnerships that are less formal.
- Creating funds for business. Businesses that are incorporated have more credibility with banks; otherwise, it can be more difficult to secure capital. If your business is incorporated, you will gain credibility with bank managers and clients who will be more favorably impressed with your business.
- Transfer of ownership. A business that is incorporated (except S corporation ownership) has easy access to a transfer of ownership.
- Retirement plans. For corporations, retirement plans are activated much more easily as compared to general partnerships. Retirement funds are also easily within the reach of corporations.
At the end of the day, if you are serious about getting into the business world, incorporating is a pivotal step in beginning to establish a business identity and protecting yourself personally. Hire CCA today and we make sure this is not just some expense—you are gaining a valuable asset for keeping your business running smoothly and in compliance with the state.