New California Corporation Questions  

     Want to Incorporate or Form an LLC in California?       


 

Here is what is Required  to Incorporate or Form an LLC in California


New California Corporation Questions

How do I incorporate in California?

Incorporation in California is done through our Office.  A
Corporation  OR  LLC  filing is recommended to reduce taxes, obtain corporate credit, protect assets, and eliminate personal legal, civil and financial liability.

 


Is my
California corporation subject to tax or income tax? 


Your
California corporation is subject to the minimum franchise tax and any corporation 'doing business' in California is subject to the minimum franchise tax.  For example if your corporation only maintains inventory in California, your corporation would be subject to corporate income tax. Unincorporated business entities are also subject to corporation income tax. 

Is an S California corporation subject to the minimum state tax?ise tax? 


Yes, S
California corporations are subject to the minimum state tax.  The current minimum tax is $800  for the first income year, measured for the second income year, and $800 for subsequent years. 

What forms do S corporations file?

  • To elect or terminate S California corporation status, form FTB 3560, S Corporation Election or Termination/Revocation
  • To report franchise or income tax, Form 100S, California S Corporation Franchise or Income Tax Return
  • To report shareholder's share of income and deductions, Form 100S, Schedule K-1
  • To report list of shareholders, form FTB 3830, S Corporation's List of Shareholders and Consents


How do I get tax-exempt status?


You must file an  Exemption Application, and receive exempt status notification from the State Tax Board.

All
California corporations and unincorporated even if organized on a nonprofit basis, are subject to California income tax. A grant of federal exemption does not automatically exempt you from California tax. FTB 3500 should be submitted 90 days prior to the date your exempt status is needed.  

I have exempt status. Do I need to file California Form 100 or Form 109 in addition to Form 199?
Every
California organization exempt must file Form 109 if the gross income from an unrelated trade or business exceeds $1,000.

My California corporation is not doing business; does it have to pay the minimum franchise tax?
Yes, if your corporation is incorporated in or is qualified to do business in California, it must file a return and pay the minimum tax.

How do I dissolve my corporation?
File dissolution documents with the Secretary of State.

Also obtain a Tax Clearance Certificate by filing form FTB 3555, Request for Tax Clearance Certificate-Corporation.   FTB 1149 Explains the entire dissolution process and includes the required filing documents. 
 

 

 reduce the chances for personal liability

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Starting a Business in the State of California

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Department of Industrial Relations, Division of Workers's Compensation

 
Department of Justice
Registry of Charitable Trusts
County agency where the principal place of business is located
U. S. Business Advisor
Small Business Administration
U.S. Customs
U S Department of Commerce
California Business Investment Services (CalBIS)
Tax Information Center
CalGOLD
Small Business Fairs

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