A C corporation in California is the preferred choice for many business owners. A C Corp is a legal entity that is taxed separately from its owners, and the most common corporation type.
If you decide that a C Corp is the best option for you, you’ll need to file various forms to officially register your business. There are several steps involved, but it shouldn’t be an overwhelming process.
California C Corp requirements
Starting a C Corp in California involves various steps (to see a more detailed view of these, check our guide on how to start a corporation in California). Below is an outline of the steps involved with making a C Corp registration.
In your C Corp filing, you will need to include the following information:
- Your company name, which should be available for you to use without conflicts.
- Your business address.
- Contact details for your appointed registered agent in CA.
- The number of shares you're authorizing to issue.
- The number of shareholders.
Aside from filing your Articles of Incorporation and the above documents with the California Secretary of State, as a C Corp, there are other tasks you’ll need to complete to ensure your business is set up properly.
- Open a business bank account.
- Hold your first shareholder/director meeting to adopt bylaws. The bylaws set out the rules of how the company is run, and through whom (directors, officers, meeting dates etc). Your legal counsel can assist you with drafting up bylaws.
- Obtain your Federal Tax ID (FEIN).
- File your first Statement of Information. You must do this within 90 days of registering your C Corp and then every year thereafter.
Your C Corp filing will only be accepted in California if all information on your documents is considered accurate. For example, if the company name you choose isn’t available, then your application will be rejected. To ensure this doesn’t happen, many businesses choose to carry out a California business lookup to ensure their desired business name is available.
Start a C Corp in California with Corporate Creations
Corporate Creations can help you form a C Corporation in California and provide extensive support during every step of the process. We can help with the C Corp filing process and provide other essential business services for you such as name search and reservations. Click here to start your C Corp journey in California today.
FAQS: California C Corp
There is a filing fee of $100 to start a C Corp in California. However, this fee only applies to filing your articles. There will be many other costs involved such as retaining legal services and appointing a registered agent. Working with one third party, such as Corporate Creations, to carry out many of the tasks associated with starting a C Corp, can help you streamline costs.
The C Corp tax rate in California is currently 8.84%. The minimum franchise tax is set at $800 and must be paid in the first quarter of each accounting period.
Yes, you can. Alongside submitting your Articles of Incorporation, you’ll also need to submit a certificate of conversion. Corporate Creations can assist with this through our business conversion services.
Disclaimer: Information provided on this page is not legal or financial advice. Consult an attorney and/or financial professional for legal or financial matters.
