The first step in incorporating your business in California is to take a series of essential steps. Here is an overview of steps on how to incorporate a business in California:
1. Selecting a Business Name among several options.
First and foremost, you'd need to choose a name for your corporation. The name should be followed by one of the identifiers mentioned above such as Incorporated," "Corporation," "Corp." or "Inc." It must also be distinguishable from other business registered in California. Check out the website of the Secretary of State of California in order to see if the name you want is available.
2. The company will submit the Articles of Incorporation.
You shall register artificial persons with the California Secretary of State in order to be allowed to legally create your corporation. This document encompasses such information as the company's name, address, name of the business mission, along with stock structure details. The DCS filing fee is $ 100.
3. Create Corporate Bylaws
Basically, these are the bylaws that regulate how your corporation is actually going to run internally. They define duties and voting processes of chairmen, officers, and boards, and also cover the agenda of meetings. Although it is not necessarily required, still, the opportunity of preparing corporate bylaws is suggested.
4. Hold Organizational Meeting
Once your Articles of Incorporation are filed and approved, you should convene an organizational meeting immediately. Bylaws are normally implemented during a meeting and they are also adopted. Minutes should be recorded.
5. File a Form s 2553EZ.
As soon as 90 days after you fill articles of incorporation you need to deliver a Statement of Information with the Secretary of State. It contains information on the corporate entity's designator, cash office, chief financial officer, secretary, and address.
6. Obtain Business Licenses
Generally speaking, big enterprises are required to get a business license as well as relevant permits which are provided by their locality. Variety of needs are based on situation and enterprise activities.
7. Start Filling Tax IDs
In conclusion, you need to go to the website of the IRS and get the Federal Employer Identification Number (EIN) and fill the documents with the California Franchise Tax Board to be successfully recognized under the tax and employment laws of your state.
Following these key steps will ensure that you corporation passes all the necessary requirements and becomes a proper business in California. Working with attorneys and tax agents will help you to make the process more effective.