Open a Corporation in California
Updated on Wednesday 24th February 2021
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If you are a foreign entrepreneur who wants to open a corporation in California, it is best to discuss all the details with one of our company formation agents in USA with experience in this field. There are particular steps to follow and our agents can handle the formalities involved, in order for you to focus on the business development and related aspects.
What are the main steps for setting up a corporation in California?
First of all, one must choose a corporate name and make a verification in this sense with the California Secretary of State. The preliminary business name check is important because the selected one might be already on the market, so you cannot use the same name. The business search database can be verified by our agents. Plus, the name of the corporation in California must comprise words like “Incorporated”, “Limited”, “Corporation” or the abbreviations of these. Here are other important steps in setting up a corporation in California:
- A registered agent is required for a corporation in California, as it is one of the main conditions for business in USA. One of our specialists can act as an agent for your company in California, with residency in this state.
- The corporate directors must be appointed by the owners of the company in California. In this matter, an “Incorporator Statement” with information about the directors must be filled. Then, the first board meeting is required.
- Corporate Bylaws are important documents for a corporation in California. These are internal documents that comprise complete details about the business ruled under which the corporation will work. These documents are not mandatory, yet it is best to pay attention to their importance.
- The Statement of Information is mandatory for corporations in California and must be filed within 90 days after creating the Articles of Association, another important set of documents. Talk to our agents and find out more details on this topic.
Register the corporation for taxation in California
Setting up a corporation in California also implicates the mandatory tax registration with the entitled authorities, among which, the California Franchise Tax Board. The federal Employer Identification Number or EIN shows that your corporation in California is registered for taxation. Such an important identification code is issued by the Internal Revenue Service, also known as IRS. One should note that the annual minimum tax is set at USD 800 for corporations in California. You are invited to discuss further details about taxation of corporations in California with one of our specialists in company formation in USA.
Do I need a general business license in California?
Yes, the general business license is mandatory for corporations in California. Some companies might need local and state business licenses, depending on the type of activities and location. Feel free to discuss all the details with one of our specialists in company formation in USA.
Hire staff for your corporation in California
If you would like to hire employees for the Californian corporation you need to register with the Employment Development Department in California. Unemployment insurance, state disability insurance, employment training tax, and California personal income withholding tax are among the taxes that should be considered in this state. Feel free to talk to our company formation agents in California and find out more about setting up a corporation in California.
Making investments in California
California is the Golden State in USA and one of the most prolific due to many interesting and well-known reasons. The huge business possibilities in California are considered by many local and foreign entrepreneurs who can develop their activities in emblematic cities and districts like Los Angeles, San Francisco, Santa Barbara, Beverly Hills, or Malibu, to name a few. The entertainment sector is quite representative in California, alongside tourism, and real estate. Companies activating in California enjoy a stable and ultra-appreciated business climate, and entrepreneurs can enjoy great profits in prolific industries. Here are some interesting facts and figures about the economy and business direction in USA:
- Nearly USD 9,465 billion was the total FDI stock in 2019 for USA.
- The 2020 Doing Business report ranked USA 6th out of 190 worldwide economies in maters of ease of doing business.
- The manufacturing sector is quite prolific in USA, with more than 40% of the total FDI being directed to this significant field, according to numbers for 2018.
Interested in setting up a corporation in California? We invite you to contact our company formation specialists in USA and discuss all the business details you want.