California Business Formation

California business formation involves specific procedures and fees, which vary based on the chosen business structure. Below is an overview for both Corporations and Limited Liability Companies (LLCs).

California Corporations

A corporation is a legal entity separate from its owners, offering limited liability protection. In California, corporations must adhere to the following requirements and fees:

1. Articles of Incorporation

Description: To establish a corporation, you must file Articles of Incorporation with the California Secretary of State.

Filing Fee: $100

2. Initial Statement of Information

Description: Within 90 days of filing the Articles of Incorporation, corporations must submit an Initial Statement of Information (Form SI-200).
Filing Fee: $25

3. Annual Franchise Tax

Description: Corporations are required to pay an annual minimum franchise tax to the California Franchise Tax Board.
Annual Fee: $800

4. Additional Fees

Description: Depending on the nature of the business, additional fees may apply, such as business license fees.
Range: Typically between $50 and $100 annually.

California Limited Liability Companies (LLCs)

An LLC combines the liability protection of a corporation with the tax benefits of a partnership. Forming an LLC in California requires the following steps and fees:

1. Articles of Organization

Description: To form an LLC, file Articles of Organization (Form LLC-1) with the California Secretary of State.
Filing Fee: $70

2. Initial Statement of Information

Description: Within 90 days of filing the Articles of Organization, LLCs must submit an Initial Statement of Information (Form LLC-12).
Filing Fee: $20

3. Annual Franchise Tax

Description: LLCs must pay an annual minimum franchise tax to the California Franchise Tax Board.
Annual Fee: $800

4. Additional Fees

Description: LLCs may also incur additional fees, such as business license fees.
Range: Typically between $50 and $100 annually

*Note*: These fees are subject to change, and additional requirements may apply based on the nature of your business. Always consult the California Secretary of State’s office or seek professional advice for the most up-to-date information.