Whether you are beginning a new business or incorporating a business already in existence, you have to understand the state requirements for LLC formation.

We help you form and start an LLC (Limited Liability Company/Corporation) setup in California which can be a relatively quick and easy process by availing our services which include to obtain federal ID (EIN) for you.

Registration:

An LLC is formed by filing Articles of Organization and Statement of Information with the California
Secretary of State prior to conducting business that our corporation setup services assist you in by
drafting and registering LLC setup in California.

The LLC members must participate in formal, written (or verbal) agreement either before or after filing articles of organization.
A husband and wife possessing an LLC may choose to be treated as a partnership or a disregarded entity.

Approximately all the members are secured from individual liability for debts and obligations of the LLC.

LLCs do not pay income tax but they are subject to pay $800 annual tax and a fee.

California’s requirements include:

The name and address of a registered agent with a physical address in California must be enrolled by LLCs, who must be available during normal business hours to receive important legal and tax documents for the business.

An LLC is great for small businesses having a limited liability protection under Civil Law, but they also want nominal officialism and paperwork. For California income tax purposes, an LLC will be restricted to a partnership if it has more than one proprietor and will be conducted as a disregarded entity if it has only one member. However, an LLC is allowed to designate (taxed) as a corporation.

To be taxed as a corporation, the LLC files an election on Federal Form 8832, Entity Classification Election, with the Internal Revenue Service. California coordinates with the federal entity classification “check-the-box regulations” that allow an LLC to accept to be taxed as a corporation.

We incorporate the corporation in California only. The following forms are needed to incorporate the following Corporation.

Requirements for the Articles of Incorporation

The document required to form a corporation in California is called the Articles of Incorporation.

California’s requirements include:

Registered agent

The name and address of a registered agent with a physical address in California must be enrolled by Corporation, who must be available during normal business hours to receive important legal and tax documents for the business.

Officers

Officer names and addresses are not required to be recorded in the Articles of Incorporation.

Stock

Authorized shares and par value must be recorded in the Articles of Incorporation.

Article of Association

• On Certification of Article from the Secretary of State, California, we would arrange the Federal ID
  (EIN NO) at no cost to you)
• Statement of Information i.e. List of directors and officers to be filed within 90 days From the date of
  incorporation. The fee to file $ 25.00
• Minute to open the account with bank – no cost to you

Article of Association

• On Certification of Article from the Secretary of State, California, we would arrange Federal ID (EIN
  No) at no cost to you.
• Apply with IRS for Status of “S” Corporation on IRS form 2553. This is an application to IRS to
  approve the corporation “S” Status. Normally it is easy to get it
• Statement of information i.e. List of directors and officers to be filed within 90 days from the date of
  incorporation. The fee to file S 25.00
• Minute to open the account with bank — no cost to you.

Qualifying Corporations:

• Must be domestic corporation
• Must not be a prohibited entity
• May have no more than 100 shares
• Meet qualifying rules
• Meet one class of stock rules

Domestic corporations rule:

• Under Reg.301.7701-5, an S corporation must be a domestic US corporation organized In the United States under federal law or state law.
• PLR 9512001 allowed a domestic corporation to retain its status if it is a domestic Corporation that is also registered as a corporation in a foreign country.

Entities prohibited from becoming an S corporation include:

• Domestic International Sales Corporation
• Insurance companies
• Corporation electing to use the possessions tax credits or A financial institution (blank) using the reserve method of accounting for bad debts.

Numbers of Shareholders

• An S corporation may not have more than 100 shareholders.

S Corporation Shareholder Table