Main Steps for Starting a Business in California
Updated on Saturday 16th January 2021
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California is an appreciated business destination and home to a wide range of companies with foreign capital. The target is simple and that is to make huge profits in a market that provides complete security and plenty of opportunities. Our company formation agents in USA can help you start a business in California and handle the bureaucracies implicated. We present to you the main steps for California business incorporation.
1. Choose the activities in California
Setting up a business in California means taking into consideration a series of aspects. The starting point is for shareholders to choose the activities they want to implement in California. A market verification in the first place is quite recommended for a foreign investor found for the first time in USA for business, in order to discover the competition and to see what he/she can bring new. In this matter, one can have in mind varied marketing and promotional campaigns before entering the market with a company from scratch. You can discuss with our specialists in company formation in USA if you would like to know more details about how to start a business in California.
2. Choose the business structure
California business incorporation is a straightforward process, as soon as you decide on the proper type of company. An LLC in California is the most popular business structure in USA and it can be quite rapidly incorporated. Here is what you need to consider about setting up a business in California, and especially a limited liability company:
- At least one shareholder can set up an LLC in California.
- There is no minimum share capital requirement.
- Registration with the Patent and Trademark Office in California is mandatory.
- The LLC in California must have an appointed registered agent. One of our specialists can help you.
- The tax registration is required when setting up a business in California. Talk to our agents for complete support and guidance.
3. Open a bank account for a company in California
The financial operations of a company in California cannot commence without a corporate bank account. Future business owners can choose the preferred bank to work with and then open an account. The formalities are quite simple and can be rapidly handled by our specialists.
4. Apply for EIN
EIN is the Employer Identification Number assigned to a company in USA and issued by the Internal Revenue Service. This code shows that the company is registered for taxation in California. More details in this matter can be offered by our team of company formation agents in USA. Our specialists can help foreigners with the California business incorporation.
5. Obtain the necessary licenses and permits
There are many business fields for which special licenses and permits are required. If you want to open a restaurant and sell alcoholic beverages, please observe the mandatory licenses and permits. Accountants, lawyers, doctors, and electricians working as sole traders in California must pay attention to all requirements in terms of permits.
6. Consider an insurance policy for your business in California
If you would like to start a business in California, it is recommended to find out the benefit of an insurance policy. The business is at the beginning of the road, so varied risks might appear. Therefore, you should protect the company right from the start and focus more on development. Interested in setting up a business in California and looking for insurance? Feel free to discuss all the aspects with our company formation agents in USA.
Why invest in California
It is a well-known fact that California is considered the largest and richest American state and land of a wide range of business opportunities. Having a booming real estate market that sustains the economy in a large percent, plus developments in IT and communication, innovation, manufacturing, entertainment, and more, make California a huge and appealing place for business and growth. Here are a few facts and figures that highlight the business and economic direction of USA:
- The total FDI stock for USA in 2019 was quite impressive; around USD 9.465 billion.
- The 2020 Doing Business report that highlights the quality of business ranks USA 6th out of 190 economies in the world.
- Japan was a huge investor in USA in 2019, directing around USD 125 billion.
- The approximate value of the greenfield investments in USA in 2019 was USD 102 billion.
Interested in California business incorporation? Please feel free to talk to our company formation agents in USA for complete support and dedicated services. Contact us right away.