Frequently Asked Questions
- Which entity is best for me?
- What are state fees?
- How much stock do I need?
- Where do I get stock/membership certificates?
- Do I need a federal tax ID (EIN) number?
- How do I open my company bank account?
- What is an initial statement and when is it due?
- When do I pay franchise taxes?
- What is a biennial statement and when is it due?
- What is an annual statement and when is it due?
- Do I need to be registered to "transact business" in my home state?
A compelling array of benefits are available to California business owners, such as asset protection, tax savings, convenience, and flexibility.
- Owners of California LLCs and corporations receive limited liability protection.
- Owners' assets cannot be seized as a result of LLC or corporate liabilities.
- Dividends and profits are taxed at a lower rate.
- Dividends and profits are not subject to FICA.
- Income shifting between personal and corporate income can result in lower taxes.
- Fewer restrictions on operating and capital loss deductions.
- Corporations and LLCs are audited less frequently.
- Greater tax deductions for medical insurance premiums.
- Higher 401(k) deductions.
- California allows one individual to act as the shareholder and director and to hold all the executive offices.
- California LLCs and corporations can be headquartered anywhere in the world.
- Aside from a registered agent address, owners are not required to maintain a physical address within the state.
- Company records do not need to be physically located in the state of California.
- Stock can be transferred instantly and privately, without filing a public notice.
- You do not have to be a US citizen to form a regular California C corporation or LLC.
- California does not impose a minimum capital investment requirement for LLCs and corporations.
- California LLCs and corporations offer generous protection (sometimes called indemnity) from personal liability.
- Unlike most other states, domestic corporations can easily be converted into LLCs and vice versa.
- California LLCs and corporations can be formed without the hassles involved with traveling to or working with the California Secretary of State's Office by using an online incorporator like The California Company.
The California Company focuses on doing one thing and one thing only—forming California limited liability companies (LLCs) and corporations efficiently.
