Incorporate a Business in California

Search to make sure your company name is available. You can use the free CorpNet company name search. Your corporate name in California will have to include one of the suffixes, Corporation (or Corp. or Incorporated (or Inc.). California has reserved the words like bank, trust, and engineer/engineering, which can only be used in your name if you have the appropriate certificates and licensing. Your name cannot imply a service or business which conflicts with the purpose stated when you register.

California law requires all Corporations assign and maintain a registered agent. A business must designate a registered agent in California who is authorized to accept service of process (essential government documents and legal notices) on behalf of its business in the state.

To serve as a resident agent or office, you must meet the following requirements:

• The agent for service of process can be an individual who resides in California or a registered 1505 corporate agent
• The agent can be an officer or director of the corporation
• A business entity cannot act as its own agent for service of process unless the corporation is currently authorized to engage in business in California and is in good standing in the records of the Secretary of State

Register your Corporation with the Secretary of State and fie the Articles of Incorporation.

Domestic Corporations are those formed in California itself. A foreign corporation is a Corporation registered in another State that does business in California. Foreign Corporations are required to register in California and obtain a Certificate of Authority to Transact Business in California.

Hold the first official meeting for the Corporation adopt the official Bylaws. The Bylaws of a Corporation are a critical document that does not get filed with any state offices but will frequently follow state statutes as a written record of how your company will operate in compliance with state laws.

Apply for a Federal Employer Identification Number (EIN) under the corporate name. In California, this will also serve as your State Tax Identification Number. You will also have to arrange for a bank account under this number for accounting purposes. Your financial institution will want a copy of the EIN as well as a Certificate of Registration from the Secretary of State.

Nearly all businesses in California must have some sort of federal, state, county, or local business license, permit, and sales tax registration. The requirements vary by the company’s location and type of business activity it conducts.

In California, several state and local agencies issue licenses and permits and assess taxes or fees. The CA.gov website and county and city websites are helpful resources for learning about the specific requirements or who to contact for more information. CorpNet also helps business owners work through identifying what their needs are and filing the applications to obtain them.

Businesses with employees must be set up to remit any employment-related taxes and fees to the state tax authorities. California manages four types of state payroll taxes through the EDD. These include Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT).

Payroll tax registration details can become confusing, so consider relying on CorpNet’s specialists to manage the process of registering your California business for payroll taxes.

Besides the startup activities involved in forming a Corporation, business owners must also fulfill some ongoing compliance requirements. The rules vary from state to state. Below are a few common compliance obligations that entrepreneurs might expect:

• Keep your business bank account and transactions separate from your personal finances.
• Renew business licenses and permits.
• File an annual report.
• Hold an annual meeting and record meeting minutes.
• File and pay taxes.
• Inform the state of any significant changes to the business.

CorpNet’s Compliance Portal is your single source for staying organized and in the know about approaching business compliance obligations. Our secure, cloud-based portal saves you from the hassle of visiting multiple websites—like those for your state, city, and county; the Internal Revenue Service (IRS); or the Franchise Tax Board—to find the information you need and the proper applications to complete.