Form a California Corporation – Form a corporation in California – Form a California S corp

Sun Corporate Filings can help you form a California corporation with the California Secretary of State on an expedited basis. To form a corporation in California or form a California subchapter S corporation, you must file the California Articles of Incorporation with the California Secretary of State. Sun can incorporate your California S corporation or register your C corporation in California so you can spend your time focusing on your California corporation's success.

We can form a California general stock corporation or a California Subchapter (California S Corp.) corporation for you at a low cost. Let us make the California incorporation process quick and painless for you by preparing and filing the California Articles of Incorporation with the California Secretary of State on your behalf.

We have two options:

1) To form a California corporation entirely online, click here to see the costs and time turnaround options for California corporations.

2) If you are an attorney, accountant, or an entrepreneur that would prefer to prepare the Articles of Incorporation and utilize our services to file the Articles of Incorporation with the California Secretary of State on an expedite basis, click here for options and fees.

How do I form a California Corporation?

There is no need to ask, "How do I form a California Corporation?" because we know how to incorporate in California form start to finish. First, we check corporate name availability with the California Secretary of State. Second, we prepare the California Articles of Incorporation. Third, before we form the California corporation, we verify that the Articles of Incorporation are free of errors. Fourth, we file the Articles of Incorporation with the California Secretary of State. Fifth, when the California Secretary of State files the California Articles of Incorporation, we will return the filed document to you. We make forming a corporation in California simple and fast!

What are the advantages of forming a California Corporation?

There are many advantages of forming a California corporation. To begin with, there is the protection of the "corporate veil" that provides limited liability to the owners (shareholders). The shareholders are not personally liable for debts and obligations of the corporation. They can personally lose only to the extent of their investments in the California corporation form purchasing stock. Since the California corporation is an independent legal entity, the California corporation has continuous existence. It does not cease to exist simply because one of the shareholders dies or retires. In addition, corporations are the most well known and widely recognized type of business entity. Corporations often have an easier time setting up insurance, retirement funds, profit-sharing, pension, and stock option plans than other business entities.

When you form a California corporation, the owners (shareholders) are not personally liable for the debts and obligations of the California corporation. Ownership in a California corporation is more easily transferable than other business entities. Under most circumstances, shares of stock can be sold without restriction to a third party without having to obtain consent from the California corporation itself. Another advantage of forming a California corporation is that capital can be raised more easily than other forms of business entities through the sale of stock.

How do I obtain an EIN or Employer Identification number or Tax Payer ID number for my California Corporation?

After we form a California corporation on your behalf, we offer supporting services. We can obtain an employer identification number (an EIN) for your California corporation. An EIN is required to open a bank account, hire employees, and to start business credit for your California corporation. If you purchase our California premium package, EIN obtainment is included for your California corporation.

How do I form a California S Corporation?

If you want to form a California S corporation or California sub chapter S corporation, we can prepare the form required to obtain S corporation status with the IRS. It is important to understand that your California S corporation starts as a general stock corporation (C corporation). To obtain or to form a California S corporation, you must file for subchapter S status with the Internal Revenue Service (IRS). Forming a California S corporation simply means the corporation is taxed like a partnership or LLC with a pass through tax structure. Make sure to check with your accountant or the IRS for limitations or read about California C corporations below. By obtaining S corporation status in California, it eliminates double taxation and the corporation generally does not file a tax return. On their tax return, the California S corporation's shareholders include their share of the California Corporation's separately stated items of income, deduction, loss, and credit, and their share of non-separately stated income or loss.

What are the advantages of a C Corporation in California?

Generally most people form California C corporations that plan on publicly trading the corporation's stock. Since California S corporations cannot have more than 75 shareholders, choosing to maintain a California C corporation allows for 76 shareholders or more. A California C corporation can have multiple classes of stock such as preferred and common shares. A California C corporation will be double taxed since both the corporate entity and the individual owners have to file tax returns. For this reason alone, many will find California S corporations desirable. However, a California S corporation can only be owned by individuals that are U.S. citizens or registered aliens, issue only one type of stock, and are limited to no more than 75 shareholders.

To form a California corporation online, click here to see the costs and time turnaround options for California corporations.

How do I obtain or prepare corporate bylaws for my California Corporation?

Often times, you can hire an attorney or paralegal to prepare the corporate bylaws for your California corporation but that could be very costly. If you purchase our premium package, Sun will prepare the initial bylaws (standard language) for your California corporation and include meeting minutes (MS Word format) that you can prepare as needed.

What are the corporate bylaws and why are they so important for my California corporation?

The corporate bylaws serve as a blueprint for your California corporation The bylaws contain the rights, privileges, and powers of the officers, directors, and shareholders. Most California bylaws contain the number of directors and their names. California bylaws also contain the names of the officers for the titles: President, Vice-President, Secretary, and Treasurer/Chief Financial Officer (CFO). The bylaws normally outline how the bylaws can be amended or changed at a future date.

Another important part of California corporation bylaws is to create "rules" on how the California corporation can open a bank account, take out loans, write checks, enter into contracts, obtain business credit, and issue stock certificates to its shareholders. Most California bylaws will reference a list of shareholders in alphabetical order that includes California shareholder's names, addresses, titles held with the California corporation, and the amount of shares the shareholder owns in the California corporation.

What is a California corporate seal?

After the California corporation prepares its bylaws or has Sun prepare the bylaws, the California corporation will need a corporate seal. What is a California corporate seal? A corporate seal is a handheld device that imprints paper with the corporation's name, state of formation, and date the California corporation was formed. Many banks and other lending institutes require California corporations to possess and use a corporation seal on business documents or loan papers. All California corporation kits that Sun sells contain a handheld corporate seal embosser.

What is a California corporation kit?

The California corporate kit is typically a hardbound binder that contains all of the California corporation's important documents such as the California Articles of Incorporation and bylaws. All the California corporation kits that Sun sells include having the California corporation's name hot stamped (professional imprint of the California corporation's name) on the spine. Most California corporation kits come with a slipcase to keep the binder safe. Some corporate kits are made with a slipcase built in. The choice is yours.

Another important part of a California corporate kit is stock certificates. All of the California corporate kits that Sun sells contain 20 custom stock certificates that include the California corporation's name, the amount of shares, the par value the corporation is authorized to issue, and the title of President and Secretary below the signature lines. If you have already formed your California corporation, you can order a California corporate kit by clicking here. We have a selection of high quality kits that come in array of styles and colors. Best of all, standard shipping is always free.

Now that you have formed your California corporation, obtained your EIN from the IRS, decided upon whether to elect S corporation status or remain a C corporation, prepared the California bylaws, issued shares of stock, and used your seal embosser, it is time to verify which local city and/or county tax licenses your business will need. The best place to start is your city hall or county recorder's office. Take the time to verify your areas business licensing requirements. For those of you who plan to run your California corporation out of your home, check with your city or county to find out if a work at home permit is required. Once your licensing requirements are met, it is time to start operating your California corporation.

To form a California corporation online, click here to see the costs and time turnaround options for California corporations.

We wish you the best with your California corporation business venture! Questions? 888 595-2747