California Corporation Checklist
What are the basic steps to incorporate in California?
Your first step should always be to contact your local corporate law firm and confirm the specific needs of your future corporation. But before your set consultation time, there are some basic documents and information that you can gather to make the process go more quickly.
California Corporation Formation Checklist:
NAME
- Choose a name for your corporation.
- Make sure the name is available.
DIRECTORS
- Name one or more directors for your corporation.
- In California, the law requires a corporation to have a minimum of three directors, unless there are less than three shareholders. For example, if you are the only shareholder of your corporation, you only need one director but can have more if you choose.
ARTICLES OF INCORPORATION
- What are Articles of Incorporation?
- Articles must be filed with the Secretary of State and follow guidelines laid out on the California Secretary of State website.
BYLAWS
- Bylaws are required for corporations under California law.
- A copy of the bylaws are to be kept at the corporation’s principal place of business.
- Bylaws typically include information regarding the rules, responsibilities, and procedures of the corporation.
STATEMENT OF INFORMATION
- The California filing fee is $25.00 and a statement must be filed each year with the Secretary of State.
- The first statement must be filed within ninety days of the Articles of Incorporation’s filing date.
MEETING
- Once the three key documents are completed and filed, an organizational meeting is to be held.
- Your corporate law firm can help you determine the easiest and most efficient way for your corporation to comply with California’s meeting and records requirements.
STOCK
- California has a statute relating to the rules and regulations for stock certificates.
- A corporation must authorize a specific number of shares, but does not need to sell or issue all of them.
TAX AND OTHER REGULATIONS
- Obtain an Employer Identification Number (EIN) from the IRS.
- Inform the IRS and State of California each time the corporation hires an employee.
- Pay the franchise tax for corporations doing business in California. The tax is $800.00 minimum (as of January 2014).
- Obtain and maintain workers’ compensation insurance.
BANK ACCOUNTS
- To open a bank account for your corporation, you will need your EIN, a copy of the filed Articles of Incorporation, and a “Banking Resolution” which lists the authorized signers for the accounts.
When to Contact a Corporate Law Firm
If any of the above checklist items seem overwhelming or unclear, it may be time to get in touch with a nearby attorney who specializes in corporate law. Additionally, for information on how to for an S-Corporation, Close Corporation, or Public Purpose Corporation, contact Attorney Andrew Gale, a local Orange County Business Attorney.
For more assistance or to ask an orange county corporate law firm-specific questions about your business, please contact us at info@galeandvallance.com, or (714) 634-1414.