How to Form a C-Corporation in California
California spans from the Mexican border and along the Pacific for nearly 900 miles. Its terrain includes cliff-lined beaches, redwood forest, the Sierra Nevada Mountains, Central Valley farmland, and even the Mojave Desert. California’s diverse economy is the largest of and US state with its contributions to Hollywood, Silicon Valley, agriculture, and manufacturing.
When forming an C-Corporation in the state of California, you must complete the following requirements:
- Select a business name according to requirements
- File all necessary articles of incorporation and submit filing fees
- Fulfill registered agent requirements
- Register your federal tax ID
- Complete statement of information
- Establish at least three directors
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Select Business Name According to State Requirements
• Name endings are not required to be used in the corporate name unless the corporation is being filed as a professional corporation or close corporation, or if it is using a person’s name.
• In such cases, the name must end with “Corporation,” “Company,” “Incorporated,” “Limited” or an abbreviation thereof.
• The name must not be likely to mislead the public. It must not be the same as, or resemble so closely as to lead to deception, the name of a domestic or qualified foreign corporation, a name under reservation or the registered or assumed name of a foreign corporation.
• The name needs Superintendent of Bank’s approval if it contained the words “Bank,” “Banc,” “Trust” or “Trustee.”
File Articles of Incorporation and Submit Filing Fees
• The document required to form a corporation in California is called the Articles of Incorporation.
• The base state filing fee for California Articles of Incorporation is $100 for mailed filings, plus $5 if you need a certified copy.
• If you hand deliver your Articles to the Secretary of State’s Sacramento office, you can pay an additional $15 special handling fee (also called the counter drop-off fee) to get the state to prioritize your filing over other mail filings.
• California requires corporations to submit an Initial Statement of Information within 90 days of forming with the state, which comes with its own $20 fee, plus a $5 disclosure fee.
• They offer 1-day processing for an additional $350 and same day processing for a $750 expedite fee.
• If you choose either option, they waive the $15 special handling fee.
Fulfill Registered Agent Service Requirements
• Corporations must list the name and address of a registered agent with a physical address (no post office boxes) in California.
• The registered agent must be available during normal business hours to accept important legal and tax documents for the business.
Register Your Federal Tax ID Number
- An Ein is required for corporations that will have employees. Additionally, most banks require an EIN before opening a business bank account.
Complete Annual Reports
• Within 90 days of formation, your corporation must pay a $25 filing fee and submit a California Statement of Information.
• The yearly report or Statement of Information is due at the end of your anniversary month.
• The price is determined on corporate taxes, but has a minimum of $800, so expect to pay at least $825 per year.
• If you file late, a $250 penalty is required.
Establish A Director
• Corporations are required to have not less than three directors unless (1) shares have not been issued, then the number can be one or two, (2) the corporation has one shareholder, then the number can be one or two, or (3) the corporation has two shareholders, then the number can be two.
• California does not have a provision specifying where directors must reside.
• California does not have age requirements.
• Director names and addresses are not required to be listed in the Articles of Incorporation.
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