Source: https://www.harborcompliance.com/information/how-to-incorporate-in-california
Timestamp: 2019-10-18 13:24:45
Document Index: 479221157

Matched Legal Cases: ['§200', '§1500', '§212', '§212', '§10', '§212']

How to Incorporate in California | Harbor Compliance
If you’re looking to incorporate in California, you’re in the right place. This guide will help you file formation documents, get tax identification numbers, and set up your company records.
Most California corporations have to pay a minimum $800 yearly tax to the California Franchise Tax Board. For more information see FTB Pub 1060: Guide for Corporations Starting Business in California
Incorporating means starting a corporation. If you want to form an LLC, please see "How to Form an LLC in California".
Is your corporation for-profit or not-for-profit? If you are starting a nonprofit, please see "How to Start a Non-Profit Organization in California".
Corporations are formed under and regulated by state law. California offers general stock, close, and professional corporations. General stock is the most common. Close corporations and professional corporations have special incorporation requirements.
California Online Business Search
Professional corporations: The proposed name must meet the name–style requirements of the law governing the profession for which the professional corporation is engaged. For more information, please contact the California state board or agency that controls your profession.
Identify the corporation’s California registered agent. This individual or company receives service of process (notice of lawsuit) and other legal service for the corporation.
4 File California Articles of Incorporation
California Corporations Code - §200-213
Consider additional provisions.
5 File Initial Report
Within 90 days of incorporation, file your initial report.
SI-200: Statement of Information for Domestic Business Corporations
You must file an initial report within 90 days of incorporation.
~1 business day online. See current processing times.
Every publicly traded corporation also must file a Corporate Disclosure Statement (Form SI-PT) annually, within 150 days after the end of its fiscal year.
Each corporation shall keep adequate and correct books and records of account and shall keep minutes of the proceedings of its shareholders, board and committees of the board and shall keep at its principal executive office, or at the office of its transfer agent or registrar, a record of its shareholders, giving the names and addresses of all shareholders and the number and class of shares held by each.
CCC §1500
Draft bylaws (potentially using a template) which is the governing document for the corporation. The bylaws shall set forth (unless such provision is contained in the articles, in which case it may only be changed by an amendment of the articles) the number of directors of the corporation (CCC §212(a)). The bylaws may contain any provision, not in conflict with law or the articles for the management of the business and for the conduct of the affairs of the corporation (CCC §212(b)). You will review and ratify the bylaws at your first board of directors meeting.
Hold the first meeting of the board of directors. "After incorporation the initial directors shall hold an organizational meeting, at the call of a majority of the directors, to complete the organization of the corporation by appointing officers, adopting bylaws, ..., and carrying on any other business brought before the meeting." (AC §10A-2-2.05). Keep minutes of this meeting.
The rules for specifying the number of directors are strange in California - generally a minimum of three directors are required (CCC §212(a)).
11 Get California State Tax Identification Numbers/Accounts
You will need to apply for a California Employer Identification Number if you will have employees.
To apply for a seller's permit (if your corporation collects sales tax on items sold), use tax account, and other permits and licenses:
Online at eReg
California corporations are subject to franchise and income taxes. This includes $800 minimum franchise tax. You do not need to register with the Franchise Tax Board, but you may need to start paying taxes.
FTB Pub 1060: Guide for Corporations Starting Business in California
California corporations file a California annual report.
California corporations must pay $800 minimum franchise tax annually.