California- the golden state, home to San Francisco, Los Angeles and, of course, MyCorporation! California’s flag is none other than the Historic Bear Flag, its capital is Sacramento, its flower the poppy and its motto: Eureka!
One would think that a place with so much start-up history would be an excellent place to start a business nowadays; however, California is actually not the best place to start a business as it turns out.
California is one of the most expensive states to incorporate in with a flat, corporate tax of 8.84%. Additionally, the state’s tax codes are known to be pretty complicated. Not to mention the large amounts of bureaucracy that a small business has to cut through in order to open.
Though on the plus side, California is the most populous state in America, so there are plenty of customers ready and willing to support small businesses. In this sense, California can still be considered a land of small business opportunity.
Here are some specifics to keep in mind if you and your business do decide to take the jump and file an LLC in California:
- When forming an LLC in California, your business must actually include the phrase “Limited Liability Company,” “L.L.C.,” or “LLC” after its name.
- You will be required to designate a registered agent. The agent must live in California, and their address must be in the business’s articles of organization, but they can also be associated with the LLC.
- After filing the Articles of Organization, within 90 days, your business must also file a Statement of Information, which you must submit every two years. Included in that should be your business’s name, address, the address of your agent, your email, the name and addresses of any managers and/or the CEO, and the industry your business is categorized in.
If you keep these filing tips in mind, and you don’t mind a little extra corporate tax, California may just be the perfect land of opportunity for your business after all.
If you have any questions about filing in California, fell free to give us a call at 1(877) 692-6772, or leave a comment below!