California Incorporation Frequently Asked Questions

No. While not required, it is suggested that you reserve the proposed corporate name, prior to submitting documents, because documents are constantly being received and processed and the availability of a name can change at any time.

The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.

No.

When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate California agency.

Yes. The registered agent must either be (1) a natural person residing in California or (2) a corporation which has been approved to serve as a registered agent in the state. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.

One or more are required.

Three or more, subject to the following exceptions: (1) before shares are issued, the number may be one or two, (2) so long as the corporation has only one shareholder, the number may be one or two, (3) so long as the corporation has only two shareholders, the number may be two.

Yes. An initial statement of officers must be filed within 90 days after filing original articles, and every year thereafter in the applicable filing period.

If I am setting up an LLC, when do I have to pay the franchise tax and how much do I have to pay?

As on the CA Franchise Tax website:

LLCs classified as partnerships or disregarded entities are subject to an $800
annual tax if they are doing business in California, or the California Secretary of
State accepts their articles of organization or certificate of registration. The annual
tax is pre-paid for the privilege of doing business in California and is due on the
15th day of the fourth month after the beginning of the taxable year. LLCs must file
form FTB 3522, LLC Tax Voucher, to pay the annual tax.
Due date for first year annual tax:
• A domestic LLC has until the 15th day of the fourth month after filing its articles
of organization with the Secretary of State to pay the first year annual tax.

• If an existing foreign LLC registers or begins doing business in California after
the 15th day of the fourth month of its taxable year, the first year annual tax is
due immediately upon commencing business in California or registering with
the Secretary of State.

The Statement of Information (Initial List) is to be filed with the CA Secretary of State within 90 days after filing the original articles.

California does not have maximum shares or maximum stock restrictions for your corporation.

The minimum number of directors for a CA corporation is 3 except
– Before shares are issued, the number may be 1 or 2
– So long as the corporation has only 1 shareholder, the number may be 1 or 2
– So long as the corporation has only 2 shareholders, the number may be 2

The normal processing time for California is 5 to 6 weeks. You can hire a Private Service that can reduce the time to 10 days.

The minimum number of organizers can be 1. An organizer may be an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign and need not be members of the LLC.

The last words of the name must contain limited liability company, LLC, L.L.C., or Ltd.and Co. The name must not contain the words bank, trust, trustee, incorporated, inc.,corporation, corp, insurer, insurance company or any other words suggesting that it is in the business of issuing policies of insurance and assuming insurance risks.