Sole Proprietorship in California

California is one of the most favored states among entrepreneurs as the state with the largest economy is the US and offers several benefits and opportunities to new and existing businesses. The state has a $3.1 trillion economy and constitutes 14% of the US economy making it one of the best places to start a sole proprietorship in California. The San Francisco Bay Area in California has high economic activity taking its rank to 19th in the world. Some of the top businesses based in the San Francisco Bay Area include Wells Fargo & Company, BNP Paribas, Gap Inc., and Old Navy. As a sole proprietorship business in California, you can leverage the various California state incentive programs. Some examples are the sole proprietorship California taxes credit programs called California Competes Tax Credit and the New Employment Credit (NEC).

What is a sole proprietorship in California?

California is a dream state for every entrepreneur planning to launch their idea or concept in the US or globally. You can choose from several different types of businesses although sole proprietorship is one of the most common types of startups. You can start a sole proprietorship in California if you are the only owner. A California sole proprietorship is not considered as a separate business entity like a professional corporation; instead it is considered to be an extension of you as an individual or a single owner. In a way, the owner and the business are the same entity and this is an important consideration when it comes to sole proprietorship California taxes. One of the biggest advantages of starting a sole proprietorship in California is that the overall cost of forming this form of entity is less as compared to corporations or limited liability companies.

What are some key features of sole proprietorship?

A sole proprietorship is the oldest form of business in the US and globally and if you are planning to start a sole proprietorship in California then there are some key features that will help you to understand this form of entity better. The key features are:

• This type of business is a single owner business and hence the sole proprietor and his/her business are considered one and the same.
• Since it is a single owner business, all management based decisions will be made by the entrepreneur or the sole owner without any interference from any other owner like in a multi-member LLC
• When it comes to sole proprietorship California taxes; the taxes are filed through the individual income tax return
• Filing a sole proprietorship in California means you as the owner will be personally liable for any and all actions as well as debts related to the business
• Sole proprietorship businesses have low startup costs as it requires less capital initially and easier payroll requirements
• The owner of this form of business will receive all the profits as well as be responsible for all business losses
• If you are wondering how to start a sole proprietorship in California then the answer is that since there is an individual owner, you will not be required to file any type of formation document for organizing the business with this state, although there would be other requirements like filing a DBA or trade name registration and obtaining the necessary business license.
• Apart from an individual, a married couple can also operate a sole proprietorship in California
• A sole proprietorship business will remain active until it is dissolved by you or upon the death of the owner. It can also be passed down to an heir.

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Steps to Start Sole Proprietorship in California

One of the simplest forms of California business entity is a sole proprietorship. So, how does the filing of sole proprietorship in California process work? It is a fact that the process for starting a sole proprietorship business is quite simple as compared to other forms of businesses like an LLC or a C-Corp. One of the advantages this type of business has over other businesses is that you are not required to register your new business with the California Secretary of State. Simultaneously, there are several state based regulations and requirements that you need to consider, so that you are able to form a new business without any glitches. The following steps will provide guidance in terms of how to start a sole proprietorship in California correctly while remaining compliant with all state regulations.

1. Choose your business name

The first step towards filing a sole proprietorship in California is choosing a business name. Every business or a brand has to have a name as this name is what your prospective customers will remember. It often creates the first impression with prospective customers and investors. A business name can also help in communicating your business strategy and the type of product or service you are offering e.g., the name Sam’s Car Rentals translates into the fact that the business offers car rentals for tourists, conference attendees, and business people.

2. Register your fictitious business name (DBA)

There are two types of names a sole proprietorship can opt for. One is to register the owner’s name and the second is to file a Fictitious Business Name also known as a DBA or Doing Business As. If you are thinking of filing sole proprietorship in California with any name other than your name then you will have to file a DBA. For example, Dean Johnson owns a sole proprietorship and the name of the business is Dean Johnson Plumbing then he will not be required to file a DBA. On the contrary, if he names the business as “Clear Drain Plumbing” then he will have to file a fictitious business name. A California DBA has to be filed with the city or office of the county clerk in the city or county the business is located. The filing fee will depend completely on the city or county it is being filed in. We at IncParadise can help you in filing your Fictitious Business Name (DBA) in California.

3. Get EIN

A sole proprietorship business is considered as a disregarded entity or a pass-through entity where sole proprietorship California taxes are concerned. The question is do you need an Employer Identification Number or EIN? If you start a sole proprietorship in California without any employees and if you are not filing pension plans or excise tax returns then you will not be required to apply for and obtain an EIN. You can file your taxes using your Social Security number (SSN). As a sole proprietor, you will be required to apply for an EIN with the IRS if:

• You are planning to hire employees
• You inherit or buy an existing business, which is then operated as a sole proprietorship entity
• You have a Keogh plan (tax-deferred pension plan) or a Solo 401(k) retirement plan
• You form a partnership, LLC or incorporate

4. Obtain necessary licenses and permits

Whether you start a sole proprietorship in California or any other form of business; you may need to apply for and acquire federal, state, regional or local business licenses and permits. As a sole proprietor business you may have to apply for and obtain multiple licenses and permits depending on your business activity. There are primarily two types of licenses – general and regulatory. There are certain licenses and permits that are issued only by the city office or county clerk of the place where the business is located or conducting business. The IncParadise “Business License Research Report” service is a resource that will help you in determining what licenses or permits your business may require. It also contains a list of filing instructions, supporting document requirements, and fees for all business licenses and permits for your Sole proprietorship business in California.

5. Open a bank account for your business

When you start a sole proprietorship in California, one of the important tasks is to open a business bank account. This will help you to keep your profit and losses or deposits and expenses separate from your personal banking account. When you maintain a separate bank account for business, it will also ensure you are able to file sole proprietorship California taxes properly. Secondly, having a business bank account can add to your professionalism and credibility as a business. One of the advantages of having a separate bank account for the business is that you will be able to accept credit card transactions wherever necessary as well as a point of sale system. You will be able to open a bank account using your fictitious business name (DBA) and the EIN, although rules and regulations vary from one state to another.

6. Report and pay taxes

One of the important aspects to consider when filing a sole proprietorship in California is the business tax. It is true that as a sole proprietor, the entire process of taxation is simple as you and your business are considered a single entity by the Internal Revenue Service (IRS). As a result, you will have to file sole proprietorship California taxes as the owner, on the income that you have earned from your business. You will be reporting income earned and losses incurred on the personal tax return form (IRS Form 1040).

Ready to Start a Sole Proprietorship Business in California?

A sole proprietorship is also known as a sole trader business or an individual entrepreneurship and is considered one of the simplest legal forms of business. It is an unincorporated entity and you can start a sole proprietorship in California without the need to register with the Secretary of State. The establishment of this type of business is quite easy and inexpensive and has few regulatory requirements. If you are wondering how to start a sole proprietorship in California then IncParadise can help you in starting your California sole proprietorship business.

California LLC or Corporation

There are different types of business structures you can choose in California including Limited Liability Partnership and Sole Proprietorship although the most popular is a limited liability company or a business corporation. The formation of an LLC is governed by the California Revised Uniform Limited Liability Company Act while that of a corporation is governed by the General Corporation Law. The cost to form California LLC is different from that of stock or professional corporations in the state. The annual California corporation maintenance cost is also different from that of limited liability companies.

Which business entity should I choose for California business?

Once you have an idea and are ready to bring it to life through a startup in California, the next most important decision would be to choose the type of business entity you should form. It is important to note that each type of business entity has its own advantages and disadvantages and these include the overall cost to form a California Corporation or LLC. There are certain aspects or factors that you should consider when planning to incorporate in California. Let us look at some of the important aspects.

• Business ownership: One of the first factors that will help you to determine the type of business entity you should form or incorporate in California is the business ownership. If you are the only owner and have no partners then sole proprietorship or a single member LLC would be the right choice. A sole proprietorship is easy to form and easy to exit from. It is the simplest and one of the most common small business legal structures. A single-member limited liability company (SMLLC) on the other hand is considered as an alternative to a sole proprietorship business. It is considered to be a “disregarded entity” and the IRS will tax this entity as a sole proprietorship. One of the other advantages is that the cost to form a single-member LLC or a sole proprietorship will be less than the cost to form a California Corporation.
• Liability and personal assets: Each form of business has its own set of risk factors although business risk usually constitutes four categories. These categories are compliance risk, strategic risk, reputational risk, and operational risk. You can also form a California LLC or corporation to minimize certain risks. There is also the liability and personal risk, which is high in some forms of businesses like sole proprietorship and low in some forms of business like an LLC. Asset protection is another area that is used for protecting personal and business assets from creditor claims and this is possible through business structures like partnerships, corporations, limited liability companies (LLCs), and trusts.
• Registration and maintenance costs: One of the important areas to consider is the overall formation costs of starting a new business in California. The cost to form a California LLC may be different from that of a business corporation or any other legal structure. In order to understand the cost of formation, let’s look at the cost to form California LLC vs. incorporation.
  • If you plan to start a general stock corporation or a professional corporation then the registration cost or cost to form a California corporation is $100 and there is an additional $15 if you drop off the incorporation documents at the Sacramento office. If you form a California LLC then the registration cost is $70.00 and an additional $15 for drop off. There are annual maintenance costs as well like the Statement of Information, which is due within 90 days of initial registration. The fee for submitting the Statement of Information for domestic and foreign Stock Corporation is $25 as compared to the fee for Statement of Information for a domestic and foreign LLC, which is $20.
• Continuity of existence: When an entrepreneur starts a business they want the business to continue for as long as possible. In the case of certain business structures like a general partnership; the business dissolves when a partner dies. If you form a California LLC that is multi-member then death or withdrawal of a member can lead to dissolution unless the operating agreement of the LLC permits continuation of business. A business corporation on the other hand is a separate legal entity that can continue to exist even after death, incapacity, or withdrawal of its shareholders, directors, or officers.

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California LLC Cost

One of the most popular forms of business entity is the limited liability company because of the several advantages it has to offer. One of the top benefits to form a California LLC is that personal assets are protected especially when the business is sued for any form of negligence. When it comes to taxes, an LLC can leverage its “pass-through taxation” status where-in the business is not taxed and instead, the income and expenses of the LLC are passed through to the personal tax returns of the owner. A limited liability company unlike S Corporations is a pass-through entity without any restrictions on the number of members or owners it may have. The cost to form a California LLC is also less as compared to other states like Connecticut, Florida, or Massachusetts.

Cost for forming an LLC in California

If you are planning to form a California LLC then there may be certain costs attached to the initial registration of your limited liability company. Registration costs are there in every state for LLC’s and are mostly considered as a one-time cost. The cost to form a California LLC includes:

• You have to file Articles of Organization along with a filing fee of $70.00
• If you are planning to drop off the registration documents at the Sacramento office then there is a non-refundable fee of $15.00
• You have to reserve a business name prior to filing registration documents to form a California LLC. The name reservation fee is $10. In addition to this, there is a special handling fee of $10.

Annual maintenance cost for California LLC

If you are planning to form a California LLC then you have to be compliant with the annual maintenance requirements as specified by the office of the California Secretary of State. It is important to remember that there is a cost to form a California LLC and there is a cost to maintain it and keep it active. The annual maintenance expenses include:

• In order to make your business operational in California, you will be required to apply for and obtain a business license. The overall cost to form a California LLC will vary according to the type of business license or permit. The fee of a small business license can vary from $50 – $100 although the cost of a license may be higher for regulated industries like the Alcoholic Beverage Control industry where a Distilled Spirits Importer’s General fee is $677.
• California LLC maintenance cost also includes the cost to renew your business license, which will again vary by the location and the type of business activity.
• You will be required to file a Statement of Information within a period of 90 days after filing the Articles of Organization. It has to be filed along with a fee of $20. The statement will be required to be filed once every two years thereafter along with a filing fee of $20.
• As a part of the annual California LLC maintenance cost, you may be required to pay a minimum tax of $800 to the California Franchise Tax Board pursuant to CA Rev & Tax Code § 17942 (through 2012 Leg Sess). This is payable each year.
• When you form a California LLC, you will be required to maintain a registered agent in the state. We are one of the top and reputable registered agents in the state and we can help to register California LLC.

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California Corporation Cost

A business or professional corporation is another type of business entity that is favored by entrepreneurs and small business owners. A corporation can be classified as a C corporation or an S Corporation. The former is one of the most common forms of California incorporation. A C Corporation has several advantages. For example, it has a perpetual lifetime, which means the business will continue to exist even if the owners die. If you incorporate in California then one of the major benefits is that the assets of owners (personal assets) are protected from any debt and liability belonging to the corporation. It is also easier to attract capital and investors through the sale of corporation stocks and bonds and it is also easy to transfer ownership. The cost to form a California Corporation is also less as compared to other states like Georgia, Illinois, or New York.

Cost for forming California Corporation

If you are planning to incorporate in California then there may be certain costs attached for the initial registration of your new business. The incorporation costs are normally considered as a one-time cost. The cost to form a California Corporation includes:

• You can form a General Stock Corporation or a Professional Corporation. The cost to form a California Corporation by filing Articles of Incorporation is $100.
• If you are planning to drop off the registration documents at the Sacramento office then there is a non-refundable fee of $15.00
• You have to reserve a business name prior to filing formation documents to incorporate in California. The name reservation fee is $10. In addition to this, there is a special handling fee of $10.

Annual maintenance cost for California Corporation

Entrepreneurs incorporate in California to enjoy the several advantages but it is important to note that once you have incorporated your business, you will need to keep it operational and active. In order to ensure your business enjoys good credibility, you will be required to fulfill all annual maintenance requirements and they are an integral part of the cost to form a California Corporation. The annual maintenance expenses include:

• Once you have filed incorporation documents, you have to make the business operational by applying for and obtaining a business license. The cost of a business license is an integral part of the California Corporation maintenance cost and is the same for all forms of businesses as it varies according to the business activity. A business license cost can vary from $50 – $100 although the cost of a license may be higher for regulated industries like the insurance business or any type of financial institution. The cost to form a California Corporation may vary or remain fixed each year as a business license or permit has to be renewed each year. The renewal fee will depend on the business activity including additional activity and the location.
• You will be required to file a Statement of Information within a period of 90 days after filing the Articles of Incorporation. The statement will be required to be filed every two years thereafter. The California Corporation maintenance cost for Statement of Information is $25. If there has been no change then a Statement of No Change has to be filed the next year along with a fee of $25. There is a 6 month filing window for California corporations.
• As a part of the annual California Corporation maintenance cost, you may be required to pay a minimum tax of $800 to the California Franchise Tax Board pursuant to CA Rev & Tax Code § 23151 (2019). This is payable each year.
• When you form a California LLC, you will be required to maintain a registered agent in the state. We are one of the top and reputable registered agents in the state and we can help to Incorporate in California.

Are you thinking of forming a California Corporation?

Need any Assistance in Forming Your California LLC or Corporation?

If you are planning to form a California LLC or a stock corporation then there will be several aspects you will need to consider. For example, you can file Articles of Organization or Articles of Incorporation along with a Submission Cover Sheet. The process and need for information can be overwhelming and even the smallest mistake or incorrect information can delay the formation process further but you need not worry as expert help is here! IncParadise is one of the leading business incorporation and registered agent service providers in California and we have helped thousands of companies to start their California business. We can provide meaningful assistance to you so that the overall cost to form California LLC or Stock Corporation and the processing time is minimal.

Entrepreneur’s guide to starting a business in California

The state of California has a pro business economic landscape with more than 3 million small businesses currently operational in the state. The state is known to frequently revise or even create new regulatory requirements and has a competitive labor market; the latter being considered advantageous by entrepreneurs as this provides an opportunity for improving internal processes of each business. The state has its own pros and cons but is still considered as an entrepreneur’s dream to start a business in California. Hence, we have created this detailed guide that will provide an insight into how you can incorporate in California and get your business licenses to make the startup operational.

Why do companies prefer to incorporate and register in California?

There are several drivers that play a key role in making California one of the most favored destinations for new businesses and startups including the existence of a robust Silicon Valley startup ecosystem, which is highly beneficial to those planning to start a business in the California IT industry. The state of California is a trillion dollar economy and if it were a nation then it would have been ranked as the world’s fifth largest economy. California’s economy is currently the largest in the United States and is home to businesses like Apple, Nvidia, and Intel. There are several advantages for registering a new business in this state and some of them are:

• A Trillion Dollar Economy: California also known as the Golden State is considered as the largest sub-national economy in the world. The Real Gross Domestic Product (GDP) of this state in 2019 was $2.7 trillion, which is quite the jump from $2,058.14 billion in 2010. Today, it is home to four of the 10 largest companies in the world based on market capitalization. You can register a business in California in any sector including the four largest sectors, which are trade and transportation, financial services, manufacturing, education and health services. A quarter of the state’s economy is dependent on trade and international commerce while professional and business services have added a real value of $391 billion to the gross domestic product (GDP) of California in 2019 followed by information and technology at $326.81 billion. One of the popular sectors to incorporate in California is the manufacturing industry. The total output from the manufacturing industry was $316.76 billion in 2018 and this sector accounts for 10.67% of the output in the state. The future outlook of the state’s economy looks positive in recent times with an increase in distribution of technology, goods, and higher home sales.
• Small Business Networking Opportunities: When you start a business in California; one of the important factors determining the overall growth of your small business will be the networking opportunities that you can leverage or benefit from. Building relationships is one of the key factors critical to business success and California provides just the right platform as it hosts large trade shows as well as conferences like Oracle OpenWorld and Dreamforce.
• Investors and VC: One of the important reasons for entrepreneurs to start a business in California is the availability of investors and venture capital firms. Every startup or small business has a startup cost and requires funds not only for enabling growth but also for achieving long-term sustainability. If you are applying for a California business license in the IT industry or in any other industry then innovators as well as entrepreneurs will have access to mentors, investors, and education. Startups and seed or growth stage businesses can benefit from seed funding provided by investors and ranging from $1 million to $100 million or even more.

Steps to start a business in California

Entrepreneurs and small business owners prefer to register a business in California as the state offers a multitude of benefits and advantages. The California Office of the Small Business Advocate (CalOSBA) also provides strong support to entrepreneurs through their economic growth and innovation programs. The “Golden State” is home to publicly traded companies and billion dollar organizations including Concentrix, Intel, GAP, Apple, Taco Bell, The Walt Disney Company, PORAC, Cisco Systems, Hewlett Packard Enterprise, Chevron, HP, Seagate Technology, Qualcomm, and Mattel among others. The Silicon Valley startup ecosystem is home to some of the largest IT companies and is considered one of its kind in the world. If you are planning to hire a California registered agent and incorporate your new business or startup in the state then the following steps would help you to identify all your important business requirements.

1. Prepare a California Business Plan

One of the important aspects to consider before you start a business in California is creating a good business plan that takes into account your financial, sales, marketing, advertising, competition, business cost, targeted customer base, and long-term business objectives. It is an important strategic tool that every entrepreneur needs to work on as a good business plan will help you understand your market and create strategies based on the existing market conditions while ensuring your business ideas are launched successfully. According to Benjamin Franklin, “If you fail to plan, you are planning to fail”, and this also stands true for business plans. Some of the reasons why a business plan is important for entrepreneurs are as follows:

• A business plan will provide you with an insight into the business itself by helping you focus on each area of the business right from applying for a loan to fulfilling state requirements like hiring a California registered agent or helping you identify your customer demographics, target market, distribution methods, and competition.
• A good business plan will help you identify potential weaknesses and even address various issues, problems or bottlenecks that you may face while trying to incorporate in California or operate the business in any jurisdiction of California
• A business plan will force you to be more realistic and enable you to communicate your startup idea with stakeholders. It can also be used to secure investment capital from lenders or various financial institutions.

So, what does a good business plan include? In order to start a business in California, your business plan should ideally include the following components:

• Executive Summary/Company Description
• Market Analysis and Competitive Analysis
• Business Structure, Management and Organization
• Products and Services
• Marketing Plan and Sales Strategy
• Financial Plan
• Future Projections

2. Attend Entrepreneurial Training or Development Programs in California

One of the areas to focus on prior to or after you register a business in California is to enroll for Entrepreneurial Training or Development Programs in the state. Entrepreneurial Training or Development Programs are primarily targeted at mostly first time entrepreneurs who don’t have any form of previous entrepreneurship or business training. Such programs cover three important variables, which are location of the business, target group or audience and the enterprise. They help in development of entrepreneurial abilities and key skill sets required for running a business right from the incorporation stage to the operational stage. These training programs are also available as a part of the Silicon Valley startup ecosystem and impart knowledge on:

• Entrepreneurial Skills and Mindset
• Assessment of Business Ideas
• Financial Planning and Forecasting
• Accounting and Financial Management
• Legal and Personnel
• Business Planning, Finance and Exit Strategy
• Operations Planning
• Market Research

• The iHub Program: If you incorporate in California then you can leverage the iHub program. The program consists of 16 Innovation Hubs or iHubs stretching from Redding to San Diego and they feature a variety of assets like technology incubators, research parks, and universities for providing a strong innovative platform for first time entrepreneurs and startups.
• Entrepreneurial Training Programs: A variety of programs offered in different counties, cities, and universities. Programs are being offered by the city of Los Angeles Community Development Department, Vermont Slauson Economic Development Corporation, Lloyd Greif Center for Entrepreneurial Studies etc.
• Small Business Development Centers: After you incorporate in California, you can benefit from the programs offered by the Small Business Development Centers. These centers are located across the state and focus on providing comprehensive business assistance through one-on-one consulting as well as low-cost entrepreneurship workshops.

3. Choose a Business Structure for California Business

If you want to start a business in California, you will need to first choose a proper business structure. According to the California secretary of state, there are different business structures that you can choose from and they are:

• Corporation
• Limited Liability Company
• Limited Partnership
• General Partnership
• Limited Liability Partnership
• Sole Proprietorship

• Risk factor: Each type of business structure has its own level of risk and as a new business owner; you should always focus on ensuring the risk is minimal. You can form a business corporation or a limited liability company (LLC) as they provide protection to personal property of the owner from a business creditor.
• Tax Structure: The tax structure is one of the most important aspects that an entrepreneur has to consider before they register a business in California. Most often than not, new business owners opt to go with a business structure that is considered a “pass through entity” like sole partnerships, proprietorships, and LLCs.
• Complexity of a structure: If you ask any California registered agent they will say that almost 75% of small businesses in the state and the nation operate as sole proprietorships because there is less paperwork and annual maintenance cost is also lower compared to other states.

4. Naming Your California Business

If you are planning to start a business in California then one of the important prerequisites as mentioned by the office of the California secretary of state is a business name. A business name is integral to each and every business as your company can be distinguished from any other company on the basis of the name. The business name can also be related to the brand message as well as the product or services you are planning to offer. The right business name is the key to making a successful business or breaking a business from a marketing or advertising point of view. A business name can be related to the product or service you are offering, it can be emotional, or it can be abstract but it is important to remember that the name will also create first impressions with prospective customers.

5. Choose Your Location for California Business

If you are planning to start a business in California, you have to identify or choose a location? First time entrepreneurs often wonder if location is really important and the truth is that location can play a decisive role in determining the long-term success and sustainability of your business. A location is considered to be an integral part of the strategic plan. It is important to note that certain locations in the state have been projected as the best places for specific business activities. For example, Southern California is home to the film industry while Napa Valley is considered a wine country. Some of the top locations where you can incorporate in California are:

• Palo Alto: The city is associated with startups and entrepreneurship and is situated in the heart of the Silicon Valley startup ecosystem hugging the southern San Francisco Bay Area. It is home to big companies like Nest, Ideo, HP, Tesla, Palantir, and VMWare.
• Los Angeles: Los Angeles County is known to have one of the most dynamic economies in the world and hence is popular among entrepreneurs who want to start a business in California. LA County is home to a rapidly growing, fast-paced high-tech industry, a strong advanced transportation and aerospace industry, and the largest manufacturing base and international trade industry in the nation.
• Orange County: It is the 6th largest county in the nation and is considered as one of the top economic locations in the world thanks to its proximity to San Diego County, Los Angeles County, San Bernardino County, and Riverside County. It has the lowest unemployment rate in Southern California and is a highly diverse tech-county with 16 high-tech industries based out of this county making it popular for first time business owners to register a business in California.

• Real estate cost and availability of office space
• Overall business environment
• Availability of business or startup resources
• Attracting talent and retention
• Transportation and logistics
• Accessibility to your target audience or consumers
• Ease of obtaining California business license

6. Register Your Business with California Secretary of State

You have an innovation or an idea but how do you ensure it reaches the targeted audience in California? The option is to start a business in California. The process of new business formation or incorporation can vary from one state to another and from one business entity type to another. If you were to form a professional corporation in California then you will be required to file the Articles of Incorporation of a Professional Corporation pursuant to CA Corp Code § 200.5 (2018). If you were to form a limited-liability company then filing of Articles of Organization pursuant to CA Corp Code § 17702.01 (2017) is necessary. The new business formation documents have to be filed along with a Submission Cover Sheet and the prescribed fee with the office of the California secretary of state.

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7. Get Your EIN

An Employer Identification Number (EIN) is one of the initial requirements if you intend to start a business in California. It is a nine-digit unique identification number that is issued by the IRS to specific business entities like a limited liability company with multiple members or business corporations. The purpose of an Employer Identification Number is to enable tax administration and businesses can use this number to file their annual tax returns. Your business may or may not require an EIN. If you want to know if your business requires an EIN or not then IncParadise as a professional California registered agent will not only provide relevant information but also guide you through the application process for an EIN. The Employer Identification Number for your California business can also be used for opening a business bank account, filing taxes, getting financing or applying for loans, and also for handling employee payroll wherever applicable.

8. Open a Business Bank Account for California Business

Entrepreneurs planning to register businesses in California may feel that there is probably no need for a business bank account especially if it is a single owner business. As a matter of fact, having a business bank account can be quite beneficial. Some of the benefits include:

• Your business account and business assets will remain separate from your personal assets
• Your business records will be much more organized
• Your business bank account will ensure you are able to file taxes accurately, which would be difficult and confusing if your business and personal transactions were connected to a single account
• You will be able to set up a credit acceptance system and a merchant account using your business bank account to accept cash and credit card transactions
• A business account helps in improving the image of your company and makes it look professional.

9. Obtain the Necessary California General Business License and Permits

You can start a business in California but to make it operational, you will need a business license. Most businesses operating in the state will need to apply for and obtain a license or a permit to conduct their business. It is important to first understand that a California business license can be categorized under:

• General Business Licenses: A general California business license is required by most business owners planning to conduct their business in a city where the business is located. A business license is also known as a business tax certificate in certain cities and if you start a business in California in an unincorporated section of the state then you will be required to obtain your business license or tax certificate according to the county. It is also important to note that if you are planning to operate your business in multiple locations then you may be required to obtain a business license in each of those locations.
• Licensing for Regulated Industries: When you register a business in California, depending on the location and the business activity; your company may be required to apply for additional licensing that is covered under “Licensing for Regulated Industries”.

10. Register for Taxes

If you start a business in California as a corporation or as a limited-liability company then it will be subject to a state income tax and hence it is important to register for taxes. California has both state level taxes and local taxes. There are 4 agencies that govern state taxes and they are:

• California Franchise Tax Board (FTB): FTB is responsible for handling state income and business taxes if you incorporate in California
• California Department of Tax and Fee Administration (CDTFA): CDTFA is responsible for handling sales and use tax
• California Employment Development Department (EDD): EDD is responsible for handling payroll taxes
• California State Board of Equalization: They are responsible for handling alcoholic beverage tax, property tax etc.

11. Annual and Ongoing Requirements

Once you register a business in California, there are certain annual and ongoing maintenance requirements that you will be required to fulfill. Some of the annual requirements after you incorporate in California are:

• Statement of Information: One of the most important annual requirements for most business types is the “Statement of Information”. This statement has to be filed with the California Secretary of State and has to be filed within 90 days after filing the documents for new business formation or incorporation. Once filed, additional statements of information will be due every 2 years pursuant to Section 17702.09 for LLC’s and Section 1502 for corporations.
• Minimum Tax Requirement: Business entities like corporations, limited-liability companies, and partners or a member in a pass-through entity will be required to pay a minimum tax of $800 to the California Franchise Tax Board (FTB) each year in accordance with FTB Publication 1060.
• DBA: If you register a business in California using a fictitious business name or DBA then it will be valid for a period of 5 years unless you change it. In such a scenario, you will need to register a new name. If you keep the DBA, then it has to be renewed

Form a new business in California to enjoy the many advantages!

Some Important Quick Resources for California Business

The good news is that you can start a business in California but the most important aspect is to find the right resources and guidance that will enable you to achieve growth and success. Each business is unique in its own way and hence the need for resources may also vary depending on their primary business activity. At the same time, you need to be also equipped with skills and knowledge to help you operate the business smoothly. The question is where do you find relevant resources and meaningful guidance if you incorporate in California? To help you answer this, we have created a list of resources relevant to new businesses, entrepreneurs, and startups.

California Secretary of State

The office of the California Secretary of State handles several aspects of governance including formation of new businesses in the state. The Secretary of State has a website that provides comprehensive information and business related resources that will help you determine the documents you need to file to register a business in California. They also provide online and offline filing of business related documents like reservation of a business name, statement of information and business entity search. You will also find information pertaining to fees for filing different documents and guidance towards business document submission in the filing tips section. The contact information for California Secretary of State is:

• California Secretary of State
  1500 11th Street, Sacramento, CA 95814
  P.O. Box 944260, Sacramento, CA 94244-2600
  Phone: (916) 657–5448
  Website – https://www.sos.ca.gov/

State of California Franchise Tax Board

The California Franchise Tax Board (FTB) is a division of the California Government Operations Agency and is responsible for collection of state personal income tax. FTB also levies a franchise tax on any business operating in the state and hence if you incorporate in California, the franchise tax will be filed with this department. You can make a payment, check your refund status, and download relevant tax forms from the website. You can also benefit from their Taxpayer Advocate Services, Executive Services, and Small Business Liaison. The contact information for California Franchise Tax Board is:

• California Franchise Tax Board
  3321 Power Inn Road, Suite 250
  Sacramento CA 95826-3893
  916-227-6822
  Phone: 800-852-5711
  Email: FTBAdvocate@ftb.ca.gov
  Website: https://www.ftb.ca.gov/

California Tax Service Centre

The California Tax Service Centre is sponsored by the California Fed State Partnership and they have partnerships with tax agencies like Franchise Tax Board, California Department of Tax and Fee Administration, Board of Equalization, Internal Revenue Service, and Employment Development Department. If you start a business in California then you can file Payroll Taxes and Sales and Use Tax with this department. You can also download information pertaining to different types of taxes including Income Tax, Payroll Tax, Sales and Use Tax, Property Taxes, and other Special Taxes and Fees. The contact information is:

• California Tax Service Centre
  PO Box 942840
  Sacramento, CA 94240-0040
  Phone: 1-800-338-0505
  Website: https://www.taxes.ca.gov/

Governor’s Office of Business and Economic Development

The Governor’s Office of Business and Economic Development (GO-Biz) has several job responsibilities including promotion of job growth, business assistance efforts, and economic development. GO-Biz also offers individuals and businesses a no cost consultation in a variety of areas like regulatory or permitting compliance, exports and foreign direct investment, and regulatory or permitting compliance assistance among others. When you incorporate in California you can benefit from different types of programs they offer for entrepreneurs like the California Small Business COVID-19 Relief Grant Program, Get Digital CA!, and Entrepreneurship Task Force. The contact information is:

• Governor’s Office of Business and Economic Development (GO-Biz)
  1325 J Street, Suite 1800
  Sacramento, CA 95814
  Phone: 1-877-345-4633
  Website: https://business.ca.gov/

Labor and Workforce Development Agency

The California Labor & Workforce Development Agency (LWDA) is responsible for coordinating workforce programs. The California LWDA also oversees the working of major departments, panels, and boards that are driven towards serving California businesses and workers by improving their access to training programs and employment. If you register a business in California, you can benefit from the comprehensive information they provide related to various aspects of labor and business like Workplace Safety and Health, Labor Laws, Workers’ Compensation, Payroll Tax Obligations, and other additional resources. The contact information is:

• California Labor & Workforce Development Agency
  800 Capitol Mall, Suite 5000 (MIC-55)
  Sacramento, CA 95814
  Phone: (916) 653-9900
  Email: email@labor.ca.gov
  Website: https://www.labor.ca.gov/

Department of Consumer Affairs

The California Department of Consumer Affairs (DCA) is an integral part of the California Business, Consumer Services, and Housing Agency. DCA is responsible for licensing or certifying practitioners in over 255 professions. The department also plays the role of a licensing regulator and an educator. They also provide comprehensive information related to several aspects of business and consumer requirements like Regulation Procedures, California business license for professionals, Consumer Assistance Booklet, Certified Arbitration Program, and Consumer guides to various businesses etc. The contact information is:

• Department of Consumer Affairs
  Consumer Information Center
  1625 North Market Blvd., Suite N 112
  Sacramento, CA 95834
  Phone: (800) 952-5210
  Email: dca@dca.ca.gov
  Website: https://www.dca.ca.gov/

CalGOLD (The Gold Standard For Permit Assistance)

CalGOLD is an initiative as a part of the Governor’s Office of Business and Economic Development (GO-Biz) to help businesses and entrepreneurs find appropriate permit information. If you are unsure regarding the California business license or permit your business requires then the CalGOLD Business Permit System will be able to address your queries. If you are planning to start a business in California then you can check the FAQs section and conduct a search based on permits and licenses or forms and fees on their website. The contact information is:

• Governor’s Office of Business and Economic Development
  1325 J Street, Suite 1800
  Sacramento, CA 95814
  Phone: 1-877-345-4633
  Email: support@go-biz.desk-mail.com
  Website: https://www.calgold.ca.gov/

California State Treasurer’s Office

The California State Treasurer’s Office is primarily responsible for finance and investment in the state. If you start a business in California then you can find information on their website pertaining to Treasurer’s Office Programs. Some of the top programs include the Local Agency Investment Fund (LAIF) program, California Hub for Energy Efficiency Financing Pilot Programs, Small Business Energy Efficiency Financing Program, Sales and Use Tax Exclusion (STE) Program, California Tax Credit Allocation Committee (CTCAC) programs, California Educational Facilities Authority’s (CEFA’s) Bond Financing Program, and Time Deposit Program among others. The contact information is:

• California State Treasurer’s Office
  915, Capitol Mall C-15,
  Sacramento, CA 95814
  Phone: (916) 653-3100
  Email: bgrajski@treasurer.ca.gov
  Website: https://www.treasurer.ca.gov/

Ready to start business in California?

California is favored by entrepreneurs, startups, and small businesses as the state provides a robust infrastructure and business incentive programs that will help you to start a business in California.

Introduction to DAO in Wyoming

When blockchain technology was introduced, the masterminds behind the DAO idea got the tools they needed to turn their ideas into a real-world project. Blockchain technology brought in the concept of a secure digital ledger. With this technology, all the transactions of the members across the Internet could be tracked digitally. Furthermore, it has also offered a safe and secure environment to build a Decentralized Autonomous Organization.

Key Things to Know About Decentralized Autonomous Organization (DAO)

A decentralized autonomous organization (DAO) is an organization or business whose decisions are made electronically through a written computer code or via the vote of its members. Basically, it is a system of hard-coded rules that would define all the actions that take place in the organization.

What is a Decentralized Autonomous Organization (DAO)?

To understand this, let us understand digital currencies which are decentralized. This means that they are not controlled by a single government institution or bank. Rather, the control is divided among a variety of computers, nodes, and networks. With this, they also gain a lot of privacy and security that normal currencies and their transactions do not get. Inspired by this, in 2016, a group of developers got the idea to create a decentralized autonomous organization.

How does a Decentralized Autonomous Organization work?

In a decentralized autonomous organization, every vote or action that takes place is represented in the form of a transaction in the blockchain. And the members who take action or place votes are represented by their address. These addresses can be owned by anyone including an IOT device, a robot, a human or even another DAO. And this is what makes it an automated system. Also, each member gets a token that acts as the shares of the DAO. These tokens can also be used to vote in the DAO to make a specific decision.

• Hire a lawyer
• Hire a vendor to get his/her service
• Fire the CEO
• Change the CEO
• Pay certain USD/ethers to someone as a bonus or salary
• Issue the share to an address since that address is adding more value

Decentralized Autonomous Organization Examples

With the DAO, we can now have companies that do not have a specific hierarchy or a CEO. This makes the structure one of the best ones to have in any kind of organization. In fact, if regulatory structures allow, then blockchain data could replace a lot of the public records such as missing persons, sex offenders, titles, mortgages, deeds, marriage certificates, and birth certificate records.

Forming a Decentralized Autonomous Organization (DAO) in Wyoming

Forming a Decentralized Autonomous Organization in Wyoming is quite easy. It can be formed online or even by just filing the form and mailing it.

How do I form a DAO in Wyoming?

A DAO can be formed by filing online or mailing the paper form. Here is the process to form a DAO LLC in Wyoming:

• Step 1: Name your Wyoming Company – Ensure that the business type you are selecting is LLC and the Additional Designation in the first step is a Decentralized Autonomous Organization. Make sure that the name has the syllables LLC and DAO (or LAO) to mark the kind of company you have.
• Step 2: Choose a Registered Agent – As per the law, you need a registered agent to register your LLC in Wyoming. IncParadise can help in being your registered agent.
• Step 3: File the Wyoming LLC Articles of Organization – To register your Wyoming DAO LLC, you would need to file the Articles of Organization with the Wyoming Secretary of State.
• Step 4: Create your Wyoming LLC Operating Agreement that would help in the smooth running of the company.
• Step 5: Get the EIN – Employer Identification Number identifies businesses for tax purposes and is used in the filing of tax returns, opening a business bank account and hiring employees.

Looking to Register a DAO in Wyoming?

What are the naming requirements for WY DAO?

The company name should have “DAO LLC” or a combination of both the entity indicators (DAO and LLC) in the name. Here are the indicators you can choose from:

• The name has to include either – Limited Liability Company or its abbreviations including: LLC, L.L.C., Limited Company, Ltd. Liability Co., Ltd. Liability Company, L.C., LC, or Limited Liability Co. – as per W.S. 17-29-108.
• It should also include: DAO or LAO as per W.S. 17-31-104(d).

How much does it cost to form a DAO in WY?

The initial fee to form the DAO in Wyoming is $100. After that, you will have to spend $60 as a minimum for the annual reports every year. The fee is calculated based on the assets employed and located in Wyoming. So, the tax is basically $60 or two-tenths of one mill on the dollar ($.0002), whichever is greater.

Do I need a Registered Agent for a DAO Company?

Anyone can form a DAO LLC by just signing and delivering one original and one exact copy of the articles of organization to the Secretary of State for filing. The person who helps with the filing does not have to be a member of the organization. Each DAO needs to have and maintain a registered agent in the state of Wyoming. That is where IncParadise can help you by being appointed as your registered agent for your WY DAO.
Other than this, you will need the Articles of Organization.

What to Include in Your Article of Organization?

The Articles should include – a statement that the organization is a DAO, the name of the DAO LLC, the street address, the name of its registered agent, and their office address. It should also have a written consent added to the appointment and signed by the registered agent. The Articles should define the structure and management of the DAO.

• Pursuant to W.S. 17-31-104(c), a Notice of Restrictions on Duties and Transfers if it will not appear in the operating agreement;
• Pursuant to W.S. 17-31-106(b), a publicly available identifier of any smart contract directly used to facilitate, manage or operate the DAO;
• Pursuant to W.S. 17-31-106(a), a statement that the entity is a decentralized autonomous organization; and
• If the Notice of Restrictions on Duties and Transfers will appear or appears in the operating agreement, a statement of such.

Convert Your LLC to DAO

DAO is still an LLC and it still follows all the laws of the LLC. The only difference is that it is a subtype of the traditional LLC. So, it is very easy to convert a domestic LLC to a DAO. All you need to do is file for an amendment to your articles and it would be converted. Note that the amendment form should have the information as needed in the W.S. 17-31-104(b). Find out more about it here – https://sos.wyo.gov/Forms/default.asp.

Management and Membership of LLC

The management of a DAO should be vested in the smart contract if it is algorithmically managed or in its members, if it is member-managed, unless it has been otherwise provided in the Articles or operating agreement. In case there are specifications made, then the DAO is considered to be member-managed.

Annual Reports for Decentralized Autonomous Organization in Wyoming

The company needs to file the annual reports that are due every year on the first day of the anniversary month of the formation of the company. If the company does not file for and pay within 60 days of the due date, the entity will be subjected to dissolution.

Additional Contact Information for DAO

• Department of Revenue (Sales and Use Tax Information)
  Phone: 307.777.5200
  https://revenue.state.wy.us/
• Wyoming Business Council (Licensing or Permit Information)
  Phone: 307.777.2800
  http://www.wyomingbusiness.org/
• Department of Workforce Services (Workers’ Compensation or Unemployment Insurance)
  Phone: 307.777.8650
  http://www.wyomingworkforce.org/
• Internal Revenue Service (Tax ID Information)
  https://www.irs.gov/filing

Ready to Form Your DAO in Wyoming?

Decentralized Autonomous Organization Advantages

As mentioned above as well, there are a lot of decentralized autonomous organization advantages including:

• Cheap distribution of shares. This is because there is no middleman and the members communicate with each other when they want to sell/buy DAO shares. This makes the complete process cheap.
• You can code integration with suppliers in the algorithm. With this, the execution would work based on that interactive algorithm. In case it is not disputed, the cooperation between the parties would be much cheaper and smoother.
• Members (who are also the shareholders) of the DAO can have a very immediate and direct impact on the company’s operations.
  No single person exists who represents the decentralized autonomous organization. Basically, all the members, including the minors also represent the company collectively.
• You can also code many standard corporation activities in the DAO algorithm. This would help the operations get executed automatically without any human intervention. Payroll, tax payment, auditing, accounting, and anything else, all would be taken care of. This process adds transparency to the operations and eliminates the risk of human errors and lowers employment costs.
• The cheap distribution of the dividends is done directly from the decentralized organization to members.

All these things just make the incorporation of the decentralized autonomous organization such a good idea.

Risks in Decentralized Autonomous Organization

Like all things have both positives and negatives, the DAO has some risks as well. These include:

• Parties might not be explicitly defined in the smart contract. So, if there is a dispute not covered by the code, it might become difficult to resolve it in the traditional legal system.
• The algorithm cannot do more than what it has been coded for. This means that it can end up making bad or biased decisions in case you do not account for every reasonable circumstance and fact. The only way to overcome this is if the DAO is structured in a way that there is always human interference in it that can take back or stop automatic decisions.
• A lot of the useful DAOs need access to data outside the blockchain. And this data is usually given through semi-automatic or automatic centralized oracle mechanisms. If someone wants to disrupt the operation of the DAO, they can easily attack it via the oracles that the organization is based on.
• Public blockchain networks aren’t controlled by a single party and their evolution can move in an unexpected direction, resulting in DAO disruption. In extreme cases, the DAO can end up becoming unstable and would just end.
• The programming code of the DAO can have bugs that can be difficult to rectify since the smart contract code is immutable (you will need to read more about blockchain to understand it better). And these bugs can cause anything from unexpected liability increment to money loss.
• In case you lose the cryptographic private key or someone steals it from you, you will lose access to the DAO and your voting rights as well. Getting it back even through legal procedures would just not be possibl

Even though there are negative points to this, there are many who are working to overcome these drawbacks and find a way around it.

Do you need help in Incorporating a Business in Wyoming?Looking to Register a DAO in Wyoming?

If you are thinking of starting your company and want to choose the decentralized autonomous organization structure, then we can help you with it. IncParadise can also help you to restructure your LLC into the DAO. We can also help you to register and incorporate your company whenever and however you want to. In addition to this, we also offer maintenance services such as mail forwarding, business address, registered agent services, and so on. Contact us to select some of our services or to know more!

Casper – Best city to start small business in Wyoming

Casper also known as “The Oil City” is famous as the regional petroleum industry center. It has been featured in the Forbes magazine list of “Top 25 Best Small Places for Business” in the nation with several industries within which you can start a business in Casper. The economy of Casper, WY employs over 30,000 people and some of the largest industries include Health Care, Retail Trade, Social Assistance, Accommodation & Food Services, Transportation & Warehousing, and tourism. You can form a business in any industry by applying for and obtaining a Casper WY business license.

Why is Casper the best place to start a business?

The city of Casper has a vibrant economy and is high on entrepreneurial spirit making it one of the best places in Wyoming and the country for a startup. You will need a business license in Casper to operate a business in this truly inspiring destination where innovation and technology combine to create a strong infrastructure. There are several reasons why opening a business in Casper is considered to be one of best options, so let’s look at some of the top reasons.

• No or Low Taxes: One of the greatest benefits of opening a business in Casper is the tax benefits. There are no state taxes like no corporate or inventory taxes. The salient highlight is that neither the City of Casper or nor Wyoming state charges any income taxes. This is one of the primary reasons why entrepreneurs prefer to start a business in Casper. The local sales tax is quite low at 5% as compared to Arkansas at 9.43%, Alabama at 9.14%, and Washington at 9.17%. The local sales tax includes 4% charged by the state and an “Optional One Cent” charged by the City of Casper, which is spent on supporting infrastructure, equipment, and local non-profit organizations.
• Strong Infrastructure: Every business requires a strong infrastructure as it plays a key role in ensuring steady and focused long-term growth. This city offers just that to those who plan to start a business in Casper. There are several key infrastructural and construction projects currently underway in the city to boost overall economic growth. One such project is the “Casper Wind Project” and its objective is to develop renewable energy facilities across potentially contaminated land as well as mine sites. The strong and reliable transportation infrastructure with Interstate Highway, US Routes, and Wyoming State Highways makes it feasible for opening a business in Casper especially in the manufacturing or warehousing & logistics industry.
• Business Incentive Programs: There are several business incentive programs that you can benefit from once you start a business in Casper. Some of the top programs include:
  • Opportunity Zone Incentive Program
  • Foreign-Trade Zone (FTZ) Program
  • Small Business Grants Program
  • Film Industry Financial Incentive (FIFI) program
  • Federal solar investment tax credit program

Steps to Start a Business in Casper, Wyoming

One of the top places to start an llc in Wyoming is Casper with Natrona County being the most popular for new businesses. A research study has indicated that 3.3 new entities were formed per 1000 people and this is almost 43 percent of the national average. According to the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, there are approximately 2700 small businesses in this city and is considered to have the best business environment thus putting it on the list ahead of Denver, Cheyenne, and Rapid City. You can start a business in Casper just like many other entrepreneurs have formed their new businesses. Some of the top companies situated in Casper include G W Mechanical, Wyoming Medical Center, Wyoming Machinery Company, SST Energy, RMH Franchise, and University of Wyoming among others.

Prepare your business idea and plan

The importance of a business plan lies in the fact that it will help you run your business better. The first and the foremost detail not to be missed is a business idea. This simply refers to the type of business activity you want to pursue like what product or service you are going to offer when you start a business in Casper. The business idea will also determine the business plan. It is important to understand that there are no good or bad business plans; instead you need to focus on creating a plan that will answer your specific requirements. There are however two categories of plans to choose from and they are: traditional plans and lean startup plans. Either of these plans will provide you with a comprehensive roadmap of opening a business in Casper, making it operational, and managing it. Some of the areas that you need to include in your business plan are:

• Executive summary: This is the first section and it includes your mission statement, product or service being offered, and basic information related to your firm including employees and location.
• Company description: This section provides detailed information regarding your business including competitive advantages of opening a business in Casper.
• Market analysis: This part of the business plan necessary to start a business in Casper focuses on the industry outlook as well as the target market.
• Services or Product line: This section provides detailed description of the products or services being offered by your company and their benefits to the potential consumers.
• Marketing and sales: This is integral to start a business in Casper and there are no perfect marketing or sales strategies. The strategy has to take into account several factors like target audience, location, competition, budget, and the USP of the product or services.
• Financial projections: This section should provide a financial outlook of the company for a minimum period of 5 years. This section should include forecasted income statements, funds to buy materials or equipment, balance sheets, capital expenditure budget, cash flow statement, and utility bills among others.

Choose your business entity

If you are planning to start a business in Casper then it is important to choose the type of business entity. In the state of Wyoming, you can choose from a variety of business entities but the most popular forms are limited-liability companies and corporations. Most often than not, entrepreneurs choose to start an llc in Wyoming as it offers them limited personal liability and flexibility of management and ownership.

Register your business

Once you have chosen the type of business entity; you need to register the business with the office of the secretary of state. This step will help you to start a business in Casper. Along with registration, you need to also identify a business name, check its availability, and then file the “Application for Reservation of Name”. The chosen name has to be provided on the application for business formation or Articles of Organization or Articles of Incorporation. The process of registration or opening a business in Casper can involve extensive documentation but IncParadise as your Wyoming registered agent can help you to register your business in Casper quickly and efficiently.

Obtain necessary licenses and permits

Once you have registered your business, the next step is to make it operational. A business can begin operations only after you apply for and obtain a business license in Casper. The license or permit required for your business will be determined by the business activity and in some cases you may require more than one license or permit or both. The type of business activity will also determine whether inspections are necessary prior to issuance of the Casper WY business license.

Do you want to know what licenses your Wyoming business requires?

Register for Taxes

Apart from fulfilling the requirements for a business license in Casper; you will also be required to register for sales tax. If your business has a physical presence or meets Wyoming economic nexus requirements, then obtaining a sales tax permit is necessary. The sales tax permit issued in the state is also known as the Sales and Use Tax License. In order to obtain or register for a sales tax permit, you may require the following depending on the type of business:

• Personal identification info like address, SSN etc
• Business identification info like physical address, EIN etc
• Date of first sale in Wyoming
• Information on products or services you are planning to sell

Obtain an EIN

One of the foremost requirements to start a business in Casper or any other city or state for that matter is an Employer Identification Number (EIN). This is a unique nine-digit tax ID number that is often known as the Federal Employer Identification Number (FEIN). This unique number is issued by the Internal Revenue Service (IRS) to specific business entities. If you start an llc in Wyoming with employees or a business corporation then you will need to apply for and obtain an EIN. We at IncParadise are an experienced and reputable registered agent that can help you to obtain an Employer Identification Number (EIN) so that you are able to file your return conveniently and can conduct your business in the state.

Market your business

In order to market your business successfully, you will need to create a marketing plan. Often, the marketing plan is an integral part of the business plan. When you start a business in Casper, your marketing strategy or plan will vary according to the products or services the business is offering. There are several key elements for marketing your business and they are:

• Website: One of the most important elements of marketing after you start an llc in Wyoming is creating a website showcasing your products or services. You can take professional help for creating a website or use ready to use templates.
• Online Presence: One of the ways to create high visibility and brand awareness is through a strong social media presence. Some of the top social media platforms include Facebook, Twitter, Instagram, LinkedIn, Snapchat, Pinterest etc.
• Local Events: Once you have obtained a business license in Casper then it is time to attend local business related events. There is a wide variety of events that take place in Wyoming and are organized by state and private organizations. These events are targeted at first time entrepreneurs as well as established business owners and provide a platform for you to market your brand to your target audience and other businesses.

Casper Business Resources and Agencies

Every business has its own unique product or services but lack of resources or help can make it difficult to start a business in Casper. Resources can be in the form of information as well as funding opportunities. Every business needs resources in some form to elevate their business to the next level. Let’s take a look at some of the useful resources and agencies as these can make opening a business in Casper easier.

Casper area chamber of commerce

If you are looking for resources that will help you to start a business in Casper then the Casper Area Chamber of Commerce is just the right place to begin your search. Their primary objective is to create business opportunities by leveraging, informing, connecting, and collaborating with their members. They offer a range of business tools including a variety of essential resources and a positive business environment for both new as well as existing businesses. The contact information is as follows:

• Address: 500 North Center Street – Casper, WY 82601
• Phone: 307-234-5311

Downtown development authority

The purpose of the Downtown Development Authority (DDA) of Casper, Wyoming is to ensure the implementation of programs to make Casper Downtown the best including providing help towards opening a business in Casper. They focus on several key areas like economic development, business recruitment, financial assistance, public relations, and educational programs amongst others. One of their recent achievements is creation of an atmosphere, which is highly attractive as well as conducive for private or business development and this has resulted in $36 million in private investments. One of the important future goals is to ensure continued recruitment of startups and new businesses to Casper Downtown. The contact information is as follows:

• Address: Downtown Development Authority, 341 W Yellowstone Hwy, Casper, WY 82601
• Phone: 307-234-5311

Small business development authority in Wyoming

If you are an entrepreneur planning to start a business in Casper then the Wyoming small business development center (SBDC) can play a key role. They can provide guidance and resources towards opening a business in Casper. They helped 108 new businesses to become operational in 2019. They provide information and advice pertaining to several areas of starting a business like Payroll & Bookkeeping, International Trade, grant opportunities, crowdfunding, and SBA Guaranteed Loan among others. SBDC has business advisors for different counties, market research centers, and state offices.

How does IncParadise help you?

Wyoming is one of the best states for starting a new business due to the many advantages: a strong economy, a positive business environment, and small business supportive incentives and infrastructure. There are several cities in Wyoming that offer attractive opportunities for new business formation and one such city is Casper, WY. As your chosen registered agents in Wyoming, IncParadise can help you start a business in Casper quickly and efficiently.

Start a Business in Wyoming

Wyoming is considered as one of the top states when it comes to offering a business friendly environment. If you are planning to start a business in Wyoming then you will be a part of a strong economy. There are several drivers of the economy like resource development especially oil and natural gas followed by tourism. The travel industry in Wyoming has earned revenue of $196 million through local and state taxes in the travel industry. Entrepreneurs can incorporate in Wyoming online or offline to benefit from the growing opportunities in a variety of sectors or industries like agriculture, forestry, and fishing, manufacturing of durable goods & nondurable goods, transportation and public utilities, Wholesale and retail trade among others.

Wyoming business environment

There are several reasons why entrepreneurs choose to start a business in Wyoming and some of the factors driving their decision are outstanding transportation infrastructure, a well-funded public education system, a good tax climate with low tax burden. The cost to incorporate in Wyoming is also lower than several states like the District of Columbia, Illinois, and New York.

10 Reasons of Incorporating Business in Wyoming

Every entrepreneur planning to start a business in Wyoming takes into consideration the various factors that are beneficial for the business. There are several “incorporate in Wyoming benefits” that business owners can take advantage of, so let’s start by checking the top 10 reasons to form a business in this state.

1. No Taxes

One of the primary reasons to start a business in Wyoming is the overall tax climate of the state. The 2021 state business tax climate index by tax foundation has ranked Wyoming as #1 – right at the top! Some of the reasons for the tax friendly climate or low tax burden are:

• The state has no corporate state income tax
• There is no personal state income tax
• There are no inventory taxes
• The state doesn’t have any franchise taxes
• There is no occupation tax
• There is no value-added tax

2. Favorable Tax Exemptions

One of the important motivations for entrepreneurs to incorporate in Wyoming is the favorable tax exemptions. These tax exemptions are considered as business incentive programs directed at new and existing businesses and help to reduce the overall cost to incorporate in Wyoming. Some of the top tax exemption programs include:

• Manufacturing Sales Tax Exemption: The sale or lease of machinery or equipment used for manufacturing processes are exempt from sales & use tax. Once you incorporate in Wyoming, you will be able to benefit from the manufacturing tax exemption.
• Sales Tax Exemption on electricity consumption in Manufacturing: The state of Wyoming has the second-lowest electric power rates in the country and any electricity that is used for the purpose of manufacturing is exempt from taxes making it advantageous from a cost perspective.

3. Asset Protection & High Privacy

There are several benefits in incorporating in Wyoming for small businesses. The first time entrepreneurs and asset protection along with high privacy are two of the foremost advantages. Wyoming has one of the strongest asset protection laws in the nation. Unlike some states like California; in Wyoming, creditors will be unable to force sale of assets. Once you incorporate in Wyoming, you will also be able to take advantage of the limited liability protection under which business owners will not be responsible for any business debts or liabilities. The state also ensures businesses can enjoy privacy. The law ensures that business owner, manager or member information is not required to be listed on the state’s public database.

4. Minimum Corporate Formalities

If you are planning to incorporate in Wyoming then there are several advantages and one of them is minimum corporate formalities. You will not face any state restrictions and there is no bureaucracy where the incorporation process is concerned. You can incorporate in Wyoming online as well as offline making the entire formation process highly flexible and time saving.

5. No Minimum Capitalization

There is a concept of “minimum capital requirement”, which basically refers to the share capital that needs to be deposited by shareholders prior to starting business operations. It is also known as the paid-in minimum capital that a business owner will have to deposit with a notary or bank post incorporation.

6. Unlimited Stock Issuance

One of the salient advantages of incorporating in the state of Wyoming is that your business can issue unlimited shares of stock for your WY Corp. Some of the other highlights are:

• You have the flexibility of classifying shares of stock as common, preferred, or a mix of both types.
• A corporation can issue no par value for shares of stock with the option of changing the value on a later date.
• When you incorporate in Wyoming, the stock of your corporation can also be issued in exchange for anything valuable like property or services.

7. US citizenship not required

You don’t have to be a US Citizen to start a business in Wyoming. The Internal Revenue Service (IRS) says that a non-resident individual can operate a business in the U.S to generate revenue and pay taxes. In brief, it means that there are no restrictions on foreign ownership of a corporation formed in Wyoming or the United States. There is no extra cost to incorporate in Wyoming even if you live outside the country. You can live anywhere in the world and still own a street address for your business through the Virtual Office Program by IncParadise.

8. Easy to move

The state of Wyoming not only offers businesses tax advantages and a pro-business environment but also makes it easier for companies based outside the state to move into the state with ease. If you have been thinking about how you can start a business in Wyoming without the need to dissolve your existing business then moving to Wyoming is one of the best options. Wyoming is one of the few states that allow you to move any type of business including corporations, LLC, or partnership among others. When you move your business, you will be able to retain the existing Tax ID as well as the original formation or incorporation date of your company.

9. Lower startup costs

One of the major benefits for a new company is the low cost to incorporate in Wyoming. The annual fee in Wyoming is based on the total value of assets within the state and hence is minimum is $50 while the incorporation fee is $100 as compared to several other states where the cost of incorporation and annual maintenance can be quite high.

10. Transferability of ownership

Entrepreneurs choose to incorporate in Wyoming to enjoy tax advantages, raise capital and limit individual liability. One of the other incorporation in Wyoming benefits is the ease of transfer of ownership. Since, a corporation is a separate legal entity the ownership can be transferred through the sale of its stock. A change in the ownership of the organization will not affect the existence or operations of a business corporation. Transfer of ownership as well as assignment of equity can take place with ease in Wyoming making the state a chosen destination for incorporation.

Ready to start a business in Wyoming?

Wyoming is considered as one of the best states for incorporation and it offers several advantages to other forms of business as well. If you have been wondering how to set up your business corporation in the state then you will be happy to know that we can provide valuable assistance to help you incorporate in Wyoming online. We are one of the top registered agents in the state and have helped individuals and entrepreneurs to start and register their business in Wyoming.