California Incorporation - Incorporate in California

Incorporate California

Instructions on California Incorporating

What will it cost to incorporate in California?

$100.00 in state filing fees to incorporate in California

What are the costs involved in forming a California LLC?

$70.00 in State filing fees for a California LLC.

How long will it take to get my California Incorporation or California LLC processed?

The California Secretary of State will take about 27 business days to process your application unless you pay an extra $350.00 and then they will process in 24 business hours.

When we Incorporate your business in California, our California incorporation service includes:

Drafting custom articles for an LLC or Corporation.
The incorporator initial resolution, or Organizer if California LLC.
Ratified corporate bylaws, or operating agreement if California LLC.
The California State incorporation filing fees.
Registered/resident agent service for California.
Our fees are: $100.00 California Incorporation service and $125.00 California registered agent incorporation service.

All for a total of only $295.00 for a California LLC or $325.00 for a California Corporation.

A couple A la Carte options are choosing the $350.00 State expedite fee to have your California incorporation done in 24 business hours and a federal tax ID number for another $50.00.

What am I going to be looking at for ongoing fees to California?

California corporations must file an initial report (California Statement of Information) within 90 days of incorporation and the fee is $25.00.

The California Secretary of State requires an annual report for corporations. The annual report will cost $25.00 and is due by the end of your anniversary month. We recommend filing this online.

An initial report is due within 90 days of filing of an LLC and the fee is $20.00.

You will have biennial reports due by the end of the month of your LLC anniversary filing date and the fee will be $20.00.

What are the California business taxes?

The California Corporate net income tax rate is 8.84% for non-financial corporations.

The California personal net income tax rate(s) are as follows:

$0-7,168.00:	1.25%
$7,168.00-16,994.00:	2.25%
$16,994.00-26,821.00:	4.25%
$26,821.00-37,233.00:	6.25%
$37,233.00-47,055.00:	8.25%
$47,055.00-$1 Million:	9.55%
$1,000,000.00 +:	10.55%

S corporations are also required to pay 1.5% tax on the net income even though they have opted to pay the income tax personally. California is the only State that goes completely against the entire point of having an S corporation election with the IRS. As you can see, you'll reach a point around 35,000 to 47,000 of net taxable income, where it would actually be cheaper to have a C corporation and pay the 8.84% Corporation tax, and thus keep your name totally off of the tax return. That doesn't make a whole lot of sense does it?

If you have an LLC and are taxed as a disregarded entity, you can avoid the 1.5% S corporation California tax, but then if you're still around the $35,000.00 taxable income level, you'll miss out on saving about 15% on what you could pay yourself in dividends.

The average California sales tax rate is 9.06% (the State has a 8.25% tax, but the average local tax is .81% making a total of 9.06%).

001 Northwest Registered Agent, Inc.
Agent# C3184722
San Francisco, CA 94117
San Francisco County