New
California
Corporation
Questions
How
do I
incorporate
in
California?
You
can
incorporate
or
form
an
llc
in
California
- it
can
easily
be
done
through
our
Office
-
Corporation
OR
LLC
-
These
forms
of
California
Business
Entities
are
recommended
to
reduce
taxes,
obtain
corporate
credit,
protect
assets,
and
eliminate
personal
legal,
civil
and
financial
liability.
Your
California
Incorporation
will
protect
your
personal
assets.
After
you
incorporate
or
form
an
llc
with
your
small
Business
Company
in
California,
your
California
LLC
or
California
corporation
is
subject
to
tax
/
income
tax.
Our
Incorporation
Service
will
show
you
how
to
set
up
your
small
business
incorporation.
After
you
incorporate
your
company
or
form
an
LLC
and
your
California
llc
or
corporation
is
subject
to
the
minimum
franchise
tax
and
any
corporation
'doing
business'
in
California
is
subject
to
the
minimum
franchise
tax.
For
example
if
your
corporation
only
maintains
inventory
in
California,
your
corporation
would
be
subject
to
corporate
income
tax.
Unincorporated
business
entities
are
also
subject
to
income
tax.
Note
that
in
most
cases
it
will
not
help
you
if
you
form
a
Nevada
llc
or
you
Incorporate
in
Nevada.
Businesses
that
form
a
Nevada
LLC
or
Incorporate
in
Nevada
benefit
only
if
certain
variables
are
satisfied
-
such
as a
net
income
of
$200
or
more.
Is
an S
California
corporation
subject
to
the
minimum
state
tax?
Though,
you
are
not
liable
for
State
Franchise
Taxes
till
the
second
year
of
existence,
you
are
still
liable
from
the
first
year
for
the
normal
tax
you
need
to
pay
for
any
income
you
made
as
well
as
state
sales
tax.
Thus,
election
S or
C
California
corporations
are
subject
to
the
minimum
state
tax.
The
current
minimum
tax
is
$800
for
the
first
income
year,
measured
for
the
second
income
year,
and
$800
for
subsequent
years.
What
forms
do S
corporations
file?
-
To elect or terminate S California corporation status, you need form FTB 3560, S Corporation Election or Termination/Revocation
-
To report franchise or income tax, Form 100S, California S Corporation Franchise or Income Tax Return
-
To report shareholder's share of income and deductions, Form 100S, Schedule K-1
-
To report list of shareholders, form FTB 3830, S Corporation's List of Shareholders and Consents
How
do I
get
tax-exempt
status?
For
California
nonprofit
corporations,
you
must
file
an
Exemption
Application,
and
receive
exempt
status
notification
from
the
State
Tax
Board.
All
California
corporations
and
unincorporated
even
if
organized
on a
nonprofit
basis,
are
subject
to
California
income
tax.
A
grant
of
federal
exemption
does
not
automatically
exempt
you
from
California
tax.
So
keep
in
mind
that
a
FTB
3500
should
be
submitted
90
days
prior
to
the
date
your
exempt
status
is
needed. Learn
from
us.
Let
us
help
you
with
your
California
Small
Business
Company.
Use
our
Incorporation
Service
If
you
have
exempt
status,
o
you
still
need
to
file
California
Form
100
or
Form
109
in
addition
to
Form
199?
Every
California
organization
exempt
must
file
Form
109
if
the
gross
income
from
an
unrelated
trade
or
business
that
exceeds
$1,000.
If
you
California
corporation
is
not
doing
business;
It
still
has
to
pay
the
minimum
franchise
tax?
If
you
did
not
make
any
taxable
income
in
the
first
year
of
existence,
you
don't
need
to
pay
the
minimum
tax.
However,
you
still
need
to
pay
for
taxes
you
are
liable
for
such
as
the
taxes
you
owe
from
any
income
you
made
the
first
year.
So,
if
your
business
corporation
is
incorporated
in
or
is
qualified
to
do
business
in
California,
it
must
file
a
return.
Then
pay
the
minimum
tax
as
described
above.
How
do I
dissolve
my
California
incorporation?
File
dissolution
article
of
incorporation
documents
with
the
Secretary
of
State.
We
can
do
it
for
you
here.
It
costs
the
same
as
incorporating
your
small
company
business
by
filing
a
corporation
articles
with
the
state.
If
you
dissolve
your
California
LLC
or
Corporation,
don't
forget
to
also
obtain
a
Tax
Clearance
Certificate
by
filing
form
FTB
3555,
and
a
Request
for
Tax
Clearance
Certificate-Corporation.
FTB
1149
Explains
the
entire
dissolution
process
and
includes
the
required
filing
documents.
INCORPORATE OR FORM AN LLC TO reduce the chances for personal liability AND DEBTS