General Guide to Company Incorporation in California

Updated on Wednesday 06th December 2017

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California is considered the richest and the largest state in USA, one of the preferred destinations for all kinds of investors who want to generate profits on the American territory in varied and attractive fields. With about 40 million residents, local and from overseas, prestigious colleges, business schools, and respected commercial environment, California is also named the Golden State, due to its biggest opportunities offered in each city. Sacramento (the capital), Los Angeles, San Jose, Santa Barbara, Santa Monica, San Francisco, Malibu, Palm Springs, Long Beach, and Palo Alto are among well-known cities in California, where numerous companies successfully perform their activities in different and appreciated sectors. Our company formation specialists in USA can offer support and assistance when opening a company in California, considering the requirements as mentioned by the laws of the state.

Forming an LLC in California

The most popular business form in California is the limited liability company which can be set up by at least one shareholder and there is no minimum share capital requirement with the Business Entities Division of the California Secretary of State. The owners are not personally responsible for the company’s liabilities or debts. Furthermore, an LLC in California is subject to pass-through taxation which means that all profits and losses are passed through the company to each member of the firm. After deciding on a name of the company, which must contain the abbreviations LLC or L.L.C., one must prepare the logo of the business and register with the Patent and Trademark Office in USA.

Appointing a registered agent for your company in California

A professional registered agent must be appointed for your company in California and he/she will act in legal terms when dealing with the firm’s documents. Please keep in mind that a registered agent in California may be an already registered company or a natural person who will be in charge of the documents of the company. If you want to open a company in USA, you should consider that our representatives in company incorporation in America can act like registered agents for your businesses in California.

The EIN for your company in California

Each company in California must have a social security number which is the same thing with the employer identification number, the EIN. This can be issued by the IRS (Internal Revenue Service) as soon as the company is registered in California with the authorities in charge and represents the social number of the business.

Opening a bank account for a company in California

Even if business persons with intentions of opening companies in California already possess a bank account, it is suggested to set up a new one, in order to separate the personal assets and incomes from the ones related to the new firm in the state. Once you have chosen the bank in California, you must prepare copies of the company’s documents and consider other bank requirements. A corporate bank account in California comes with a business bank card and varied online services linked to the future financial transactions. 

Sales tax in California

Companies with trading activities should consider the sales tax in California which is usually added to the prices of goods and services. This tax is then collected and deposited to the tax authorities in California. All sellers with a physical storage address in California and who offer products and services for a particular price must consider the addition of the sales tax. The exemption regards the medical devices, machinery, medicines, grocery and also the design area where the sales tax is not imposed.

A website for your company in California

Regardless of the activity field in California, but with complete focus on the competition, an entrepreneur should take into consideration the idea of creating a website for his/her business. There are numerous companies that offer such services in varied domains, and for creating awareness on the market, it is impetuous to understand that the online environment is a good start for promoting the products and services offered. In addition to a website for your company, it is necessary to explore the social media and the suitable channels which can prove to be successful for your business in California.

Virtual office for a company in California

Numerous companies in California have traditional offices in the state, but there are many investors who decide to use the services of a virtual office, not only for low costs but also for the facilities involved. A notable business address, mail and correspondence services, business meetings with future partners and a local phone number are among services of a virtual office in California. If you do not intend to settle a traditional office in California, please keep in mind that our local consultants in America can provide you with virtual office services on request.

Why open a company in California?

Without a doubt, California is one of the most attractive destinations in America, for both business and development. An influent and wealthy state like California is chosen with no second thoughts by entrepreneurs in search of success on a fruitful and respected market. The skilled workforce in California’s main industries is also a point of start when thinking of placing the activities in the state. Additionally, California is a synonym for entertainment, a domain where small, medium and large businesses have success. We also mention that Silicon Valley is the home of technology and related businesses where we remark that companies like Apple, HP (Hewlett Packard), EA (Electronic Arts), Google, Facebook, Tesla or Intel are among huge and well-known companies with headquarters established here.

If you are interested in opening a company in California, please do not hesitate to contact our team of agents in company incorporation in America.



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