How to Open a C Corporation in California

1. Choose a Name for Your Company
You first have to choose a name for your C company. Make sure it differs from every other California firm. Your last name should finish in terms like Corporation, Incorporated, or Limited.

2. File Important Papers
You must transmit specific vital documentation, Articles of Incorporation to the California Secretary of State. These documents let the state know about your startup. You may mail them or email them. Doing this will cost $100.

3. Pick People to Help Run the Company
A group must make big decisions for C company of persons known as a board of directors. You must have at least one member on this board in California, although having more may benefit you.

4. Write Company Rules
Clearly state the policies your business will follow. These are known as bylaws. They ask questions on topics like your decision-making process and frequency of meetings.

5. Get a Special Number for Your Company
Request an Employer Identification Number (EIN) from the government. This serves your corporation like a Social Security number. You need it for tax payments and opening a bank account.

6. Open a Bank Account for Your Company
Create a new bank account specifically for your C business. This separates your funds from those of the company.

7. Get Ready to Pay Taxes
California C companies have taxes to pay. Even if your firm doesn’t profit, you must pay at least $800 annually. Your business may have to pay more taxes as it expands and increases profitability.

8. Get Any Special Permits You Need
Your beginning company type may determine whether you need specific permissions. Check with your local government to find out what you need.