Silicon Valley Startup Heaven

Some of the top entrepreneurs and first time business owners want to form a Silicon Valley startup as the business environment and startup ecosystem is just perfect when it comes to valuable resources and business growth enablers.

Silicon Valley startup ecosystem

Silicon Valley is home to different types of business organizations and institutions, which have facilitated the creation of a robust business environment. This environment is a part of the Silicon Valley startup ecosystem and is highly conducive towards the successful creation and operation of startups, leadership in several high-tech specialization areas, and disruptive business models. The ecosystem is driven by several components and has a variety of characteristics, which make the Silicon Valley system work in a synchronized manner thus making it conducive to register a Silicon Valley startup.

• The Micro level: Focuses on Product, People, and Pivot
• The Meso level: Comprises of Capital, Universities, Government, and Support Networks
• The Macro level: Revolves around Culture inspired by generations of startup founders

• Startups
• Large tech companies
• Investors
• Accelerators
• Universities
• Co-working spaces

Why is Silicon Valley good for startups?

The Silicon Valley startup ecosystem boasts of a dual ecosystem consisting of startups and large firms existing symbiotically. Silicon Valley is considered to be a comprehensively integrated as well as balanced business ecosystem that ensures startups are able to leverage from the leading-edge innovation, pro-startup culture, and pioneering entrepreneurship. The Silicon Valley ecosystem provides support to startups so that they can push forward their dreams into a global market. Some of the factors that play a key role if you plan to register a Silicon Valley startup are:

• Successful entrepreneurs as well as startups can enjoy high financial returns
• Availability of top-level global human resources for various stages of a startup
• Existence of strong business and industry like accounting, IT, law, etc.
• It is the most competitive market for venture capital (VC’s) and other investors
• Ivy league and top ranked universities like Stanford, UCSF, and UC Berkeley
• Most human resource clusters are anchored around these top universities
• Availability of top startup accelerators in the Silicon Valley provide startups with advice, mentorship, and resources
• The government plays an extensive role in shaping current and future technological trajectories
• There is a fine balance between open innovation, secret protection, and intellectual property protection amongst highly competitive industries
• There is a high mobility of labor at different management and talent levels
• There is a strong and positive culture of accepting failures leading to effective evaluation as well as monitoring

Top startup industries in Silicon Valley

The Silicon Valley as well as the Bay Area is considered as the greatest hub for new businesses and startups. This is because when you form a Silicon Valley startup; the existing and continuously evolving and expanding infrastructure provides the necessary platform to a business in its nascent stages. Silicon valley also provides a favorable advantage when it comes to the tech industry but the truth is that there are several other top startup industries in the Silicon Valley area that have garnered equal attention and reputation. Let us briefly look at the hottest industries in Silicon Valley.

• Fintech – Fintech or Financial Technology is a form of emerging technology, which focuses on helping financial institutions improve and automate the delivery of various financial services. If you are planning to incorporate a Silicon Valley startup in the Fintech industry then it is one of the most rewarding and rapidly growing industries. In fact, a report by Ernst and Young estimated that the California Financial Technology market was worth $7.1 billion in 2015. In the near future, there will be enormous growth potential for startups in terms of revenue generation in this industry due to the increasing use of Artificial Intelligence in Financial Technology. Today, it is considered as one of the top startup industries in Silicon Valley and some of the highly successful businesses in this sector include Braintree, Varo Money, Brex, Morningstar, Gravity Payments, and Acorns.
• Big Data – One of the areas or industries that are expected to even grow bigger in the years to come is Big Data. This is also one of the favored industries to incorporate a Silicon Valley startup as the existing market size globally was $41.33 billion in 2019 and its projected growth is $116.07 billion by 2027. This is more so because of early adoption of futuristic technologies like AI (Artificial Intelligence) and Predictive Analysis according to a report by Fortune Business Insights. Some of the top startup industries in Silicon Valley as well as global companies like IBM Corporation, Amazon.com, Microsoft Corporation, SAP SE, Oracle Corporation, Software AG, Infosys Limited, Cisco Systems, and Dell Technologies have been key players in the big data market.
• Blockchain – The Blockchain technology was first outlined in 1991 and was first implemented in 2009 for transactions being made using bitcoin. It is essentially a public ledger or a distributed database of records that comprises any or all transactions or even digital events taking place and is normally shared among participating entities. The wide variety of applications of Blockchain has attracted many entrepreneurs to incorporate a Silicon Valley startup in this industry. The market size of the global blockchain technology was valued at $3.67 billion in 2020 and is expected to grow quickly. You can register a Silicon Valley startup in the Blockchain industry as it is expected to expand or grow at a CAGR (compound annual growth rate) of 82.4% from 2021 to 2028. It is one of the most promising technologies in the IT domain and is projected to reach $69.04 billion by 2027.
• AI & Machine Learning – Artificial Intelligence is a big concept and machine learning is a subset of AI and together they are increasingly being applied in a variety of industries and areas including eCommerce, Workplace Communication, Human Resource Management, Healthcare, Cybersecurity, Logistics and Supply Chain, Chatbots, Space Exploration, and Smart Homes. If you are planning to incorporate a Silicon Valley startup in this industry then it is surely going to witness expansion and growth in the near future as market research firms like Tractica believe that Global AI market revenue is projected to reach $118 billion in 2025 while Machine Learning market size will reach $96.7 billion by 2025. The market share in the North American region for AI was $11.40 billion in 2019 while that of machine learning was $2.40 Billion. You can register a Silicon Valley startup as California is considered one of the best platforms for this industry and is home to industry stalwarts like NVIDIA Corporation, Alphabet (Google LLC), Apple Inc., Cloudera, Salt Security, and DeepMap among others.
• Medtech – Technology is at the heart of most industries today and this includes the medical industry as well. Medical Technology is commonly known as Medtech and it refers to a variety of technology enabled medical products, solutions, and services whose applications are mostly used for diagnosing and treatment of different diseases and medical conditions. Medtech applications can vary from ultrasound scans to high resolution laser machining, nano-medicines, and even electronic health records. The US Medtech market size for medical devices was worth $156 billion in 2017 and is projected to grow to $208 billion by 2023. This industry is an integral part of the US healthcare sector and one of the chosen areas for entrepreneurs to form a Silicon Valley startup. A report by Deloitte consulting revealed that the Medtech industry is well-positioned and geared up for driving the future of the healthcare industry and this is the right time to register a Silicon Valley startup in this industry.
• Biotech – Biotech is a field of technology where organisms or their products are used primarily for commercial purposes. It is also known as Biotechnology and uses living cells for developing or manipulating products for a variety of purposes including genetically modified food. It is a growth oriented industry that attracts entrepreneurs to incorporate a Silicon Valley startup. In fact, the U.S. biotechnology industry is expected to expand and grow at a CAGR (compound annual growth rate) of 9.2% between 2021 and 2027. This is more so because of its varied applications including in the field of genetic engineering, reducing environmental impacts of industrial processes, DNA fingerprinting, and increased crop yield among others. The US Market Size for biotechnology in 2021 is valued at $105.3 billion and its projected value in 2027 is $952 billion. This is an industry where entrepreneurs can register a Silicon Valley startup as it is considered to be expanding and evolving globally.
• Cybersecurity – One of the key areas of technology today is Cybersecurity. Its importance lies in the fact that digital attacks of technology driven systems, networks, and programs have become prevalent in recent times and hence, such systems or technology needs to be protected. Cybersecurity is a type of unified threat management system that helps in detection, investigation, and remediation of cyber or digital attacks thus protecting sensitive data or information. Identity theft is one of the most common examples of cyber attack. It is one of the top startup industries in Silicon Valley as the Cybersecurity Market is forecasted to grow from $152.71 billion in 2018 to $248.6 billion by 2023. The North American market was valued at $156.24 billion in 2020 and is projected to reach $352.25 billion by 2026. There are several areas of Cybersecurity where you can form a Silicon Valley startup like Deployment (On-premise and On-cloud), Manufacturing, Public Utility, Retail, IT, Financial Services and Insurance (BFSI), and Banking among others.

Start a new California business in Silicon Valley!

Forming Your Startup in Silicon Valley

Silicon Valley located in the San Francisco Bay Area is home to some of the top technology companies in the world. It is the headquarters of digital giants and other companies like Apple, Alphabet Inc.-Google, Netflix, Wells Fargo & Co., Facebook, Visa, Inc., and Chevron Corporation among others. The “Big 5” tech companies in the Silicon Valley generate revenue of $802 billion, which is more than the GDP of Switzerland and Saudi Arabia.

Prepare your startup idea and business plan

If you have a genius or innovative business idea then it’s time to incorporate a Silicon Valley startup. One of the first steps towards forming your new business is preparing and developing your startup idea and drafting a business plan. There are certain aspects that you need to consider while developing your startup idea as the business plan will be created accordingly. The most important aspect is to analyze the relevant market.

• Executive summary: This will include information about your startup and objectives in brief
• Market analysis: This includes information pertaining to industry research, competition, and launch market
• Company Structure: The structure of your startup like Corporation or LLC
• Branding, marketing and sales: This area will focus on modes and plan of advertising, marketing, and selling
• Product or service: Description of what your product or service is and how will it be beneficial for customers
• Financial projection and business model: A broad view of the earning potential of your startup and future financial scope
• Strengths, weaknesses, opportunities and threats (SWOT): A SWOT analysis will provide a realistic view of challenges, bottlenecks, potential threats, and opportunities available.

Networking/connect with industry experts

In this digital age, it goes without saying that the more people you connect with; the better it will be for your business. If you are planning to form a Silicon Valley startup then networking or connecting with industry experts will help further your startup plans or business expansion. Whether your business is currently in an ideation phase or moving towards a minimum viable product (MVP) stage; it is important to connect with industry experts as well as investors through a variety of networking channels and platforms including events, opportunities, coworking spaces, and meetups. The opportunities you can leverage when you register a Silicon Valley startup are:

• Meetups: One of the best options for networking within the Silicon Valley startup ecosystem is by becoming members of various Silicon Valley entrepreneur groups as they organize both events and meetups. Some of the top groups for meetups are Silicon Valley Young Professionals-SVYP (Santa Clara), Silicon Valley Entrepreneurs Toastmasters Club (Santa Clara), SF Tech Ladies (San Francisco), and Bootstrappers Breakfast – Silicon Valley Startups (San Jose) among others.
• Events: One of the greatest benefits for aspiring entrepreneurs or first time business owners in the Silicon Valley is the large number of tech and startup events that take place in the region. Some of these events are attended by executives of the top startup industries in Silicon Valley. The events can be categorized under:
  • Inspirational startup events
  • Startup Events on Best Practices
  • Events focussing on Network and forming a team
  • Hackathons
  • Investor Networking Events

Incorporate and register your startup

In most states including California, all you need to form a business corporation is submitting articles of incorporation to the office of the Secretary of State of the chosen jurisdiction. However, if you are planning to incorporate a Silicon Valley startup or a high-growth tech company then the business formation will require much more than simply submitting the articles and bylaws. Some of the aspects integral to Silicon Valley startups are rapid growth, issuance of equity incentives to employees, scaling your business, and creating the ability to take outside investments. So, how are most Silicon Valley startups formed?

Secure funding for startup

Every business requires a startup capital; some require higher investments while others can kickstart their business with minimal capital. If you are planning to form a Silicon Valley startup then depending on the industry the startup belongs to, you may need outside funding. The question is, how do you secure funding for your startup?

Looking to register your Startup in Silicon Valley?

Silicon Valley is one of the most economically vibrant, technologically challenging Diaspora of innovation. It is home to some of the biggest tech or IT companies in the world and is considered to be the gold standard for technological advancement. If you have an idea and are planning to form a Silicon Valley startup then we at IncParadise are here to assist you with business formation requirements. We can help you to incorporate and register your Silicon Valley startup, so that you can begin operations at the earliest and maximize your benefits of launching a business in the famed valley.

Registered Agent in California

A registered agent in California can be an individual or a firm, which is hired or designated by a business entity for the purpose of receiving service of process documents and notices, government correspondence, and different types of compliance-related documents on behalf of the said business entity. Some of the best California registered agents also provide a wide variety of services focused on business requirements like assisting with new business formation or existing business amendments, filing of Statements of Information, and helping obtain California certificate of good standing and federal tax ID among others. Whether you are hiring a new registered agent or planning to change a California registered agent, it is important to understand in detail the responsibilities and benefits you can derive by designating a registered agent.

What is a registered agent in California?

If you are thinking of forming a business corporation or a limited liability company in California, you will be required to designate a registered agent according to the California Business Codes. In fact, according to law, you will have to provide specific information pertaining to your chosen registered agent when filing the articles e.g., according to CA Corp Code § 17702.09 (2019), you have to provide the name and street address of the agent in this state pursuant to Section 17701.13. If you change a California registered agent, you will be required to notify the office of the California Secretary of state of the same.

Who can be a California registered agent?

The California Business Code dictates that one of the primary California registered agent requirements is that they should maintain a registered office, which should be a physical address in the state and not a PO box number. A California registered agent would also need to keep regular business hours so that they can accept service of process as well as any other legal correspondence on behalf of their clients or entities they are representing. If you had to choose the best California registered agent then who would it be or how would you choose? In reality, there are two scenarios –

• An individual as a Registered Agent where-in you or your company becomes a registered agent but this unfortunately is not an option in California. The state doesn’t allow entities like LLC or owners to serve as their own registered agents.
• A Commercial Registered Agent is the second option and applicable in California. If you are starting a new business in California, you will need to hire and maintain an RA. If you have an existing business and are not satisfied with the services of your current RA then you can apply to change a California registered agent. So, who is a Commercial Registered Agent? It is an individual or firm or third party that is compliant with the statutory requirements as specified in the California Code-CA Corp Code § 17701.13. A commercial agent is someone who should have represented a minimum of 50 or more domestic and foreign business entities and should have the experience of handling service of process for a period of one year. IncParadise is one of the best California registered agents with experience of handling and representing more than 10,000 business entities across the US including California. We are also fully compliant with the California Corporations Code requirements.

What does a registered agent do?

It is important to note that different states may have different California registered agent requirements as well as processes but the purpose of a California RA will be the same as an RA of any other state. So, what is the purpose of the best California registered agent?

• The primary purpose of the best California registered agent is facilitating service of process. Service of process is basically a procedure where a party (individual, business, or government) to a lawsuit gives notice of legal action to another party (business entity like an LLC or INC.), so that the said entity can respond to the proceedings before the court. A registered agent can accept the notice or legal documents on behalf of the party being served the notice pursuant to 416.10 of the California Code of Civil Procedure (CCCP).
• When you change a California registered agent then they will fulfill certain secondary purposes as well such as providing the business with a legal or physical address in the state. This is quite beneficial for non-US residents or those running a business in California while being based in another state. A physical address also means that notices and government or business documents can be received by the agent’s office during normal business hours as specified by the California Corporations Code.
• The type of services the best California registered agent provides can vary from one agent to another but some of the top agents like IncParadise provide a multitude of services depending on the requirement of a business entity. Most commonly, a top California registered agent provides new business formation including that of LLC and corporation apart from ensuring businesses are able to maintain their annual operating compliance with the state.

How Do I Change My California Registered Agent?

There are several reasons why a business would want to change a California registered agent with the most common reasons being:

• The number of business centric additional services offered
• Professionalism and credibility of the agent
• Handling of both domestic and out of state (foreign qualification) business
• Providing detailed information and guidance towards business requirement fulfillment

1. Select a new registered agent

The first step towards changing your registered agent is finding the right RA. You need to identify an individual or firm that can provide service of process and also represent you in California. If you are thinking of the cost of change of California registered agent then it is minimal. There are no state filing fees but there will be a change of agent fee. If you are searching for a new registered agent then here are some tips:

• Compliance: One of the primary factors that govern the choice of most business entities is compliance. It is important to ensure that your chosen RA meets all California registered agent requirements of the state and California Corporations Code. IncParadise is not only state compliant but also meets all state and law based requirements in California.
• Regular office hours: One of the primary California registered agent requirements is maintaining regular office hours so that any legal notices and business documents can be received by them on behalf of their clients.
• Physical Presence: A physical presence in terms of a business address is required by law. This helps businesses where owners reside outside the state. For example: If you reside in Michigan and want to operate a business in California, you will need a physical address. Some of the best California registered agents can provide you with a physical address in the state thus ensuring state compliances are met.
• Evaluate their services: If you are planning to change a California registered agent then you need to evaluate what services they are offering. One of the best California registered agents like IncParadise is a leading registered agent service provider in California because of the variety of business related services offered right from new business formation to obtaining tax ID, and filing of annual reports.

2. Notify your previous registered agent

If you are planning to change a California registered agent then it is important that you notify your previous registered agent of the same. Some businesses may think that removing an agent may lead to loss of credit but that will not be the case. At the same time, when you cancel the services of your previous registered agent, the agency or firm will require a confirmation of the fact that their name is not listed in the California state records as your registered agent. In such a scenario, all you need to do is provide a copy of the “change of agent” filing along with the entity records from the SOS website.

3. File California Statement of Information to the California Secretary of State

As a business entity wanting to change a California registered agent, you may ask, if there is any form that is required to initiate this process in the state of California. Actually, you are not required to file any form but have to simply inform the office of the Secretary of State. In fact, if your business is a domestic or foreign stock corporation or an LLC then you will have to file a “Statement of Information” while other business forms like limited partnerships or general partnerships have to file a statement of amendment. The purpose of the Statement of Information is to update the new agent information in the state records.

Want to Change your California registered agent?

Cost of Changing a California Registered Agent

There is no extra cost of change of a California registered agent except for the fee for filing the Statement of Information and the fee for new agent services, where the latter will vary from one agent to another.

Choose IncParadise as Your California Registered Agent

If you are planning to form a new business or thinking of expanding your existing business to California; the state and business laws make it mandatory for entities to hire and maintain a registered agent in the state, especially to handle service of process. If you want to change your California registered agent then it is also important to note that the new or chosen agent should have a physical presence in the state in the form of a physical address and not just a P.O.Box number. IncParadise, one of the best California registered agents and adheres to the regulations established by the office of the California Secretary of State.

California Foreign Qualification Process

If you have an established business in any other state like Delaware or Wyoming and want to expand your business activities to California then you will need to undergo foreign qualification
in California. The process for foreign qualification will vary according to the type of business. For example, California foreign LLC registration and fee will be different from that of a corporation. The California foreign qualification process is important and failing to foreign qualify can lead to penalties and prosecution. An entity may be subjected to a penalty of $20.00 per day for unauthorized intrastate business transactions. The entity may even be prosecuted by the California Attorney General and such an entity may be required to pay an additional penalty.

California Foreign Corporation Registration

If you are planning to form a foreign corporation in California then you will need to obtain a certificate of qualification from the office of the Secretary of State. This certificate permits an entity to transact intrastate business. The following steps will help you to identify the requirements for California foreign corporation registration.

• Name Registration: The first step towards foreign qualification in California is to choose a name and check availability. If the chosen name is available then you will need to register the corporate name with the office of the Secretary of State, Business Programs Division, pursuant to CA Corp Code § 2101 (2019). The fee for registration of a corporate name is $50. You will be required to also file a “Submission Cover Sheet” along with the name registration paperwork. If the chosen name of the foreign entity is not available for use in California then the entity will have to qualify using an assumed name.
• Registered Agent: An important aspect of California foreign corporation registration is designation of a registered agent for the service of process pursuant to CA Corp Code § 2102 to 2105 (2019). You can hire IncParadise as your California registered agent as we possess experience and expertise in foreign qualification in California and can help you qualify for the same.
• Certificate of Good Standing: It is also known as the certificate of existence or entity status letter depending on the state your corporation is registered in. You will require a Certificate of Good Standing from your home state or state of incorporation and will be submitted along with foreign qualification in California paperwork.
• Foreign Corporation Qualification: If you want to apply for California foreign corporation registration by yourself then you need to download, fill, and submit the Statement and Designation by Foreign Corporation form. It has to be submitted with the office of the California Secretary of State. You have to submit a current Certificate of Good Standing with the form along with a fee of $100 for foreign stock corporations.

Do you want to form a California Foreign Corporation?

California foreign LLC registration

Are you thinking of setting up a foreign LLC in California? If yes, then you will need to obtain a certificate of registration from the office of the Secretary of State. This certificate permits the foreign limited liability company to transact intrastate business. The following steps will help you to identify the requirements for California foreign LLC registration.

• Name Registration: The first step towards foreign LLC in California registration is to choose a name and check if it is available. The chosen name should be distinguishable in the SOS records from names of other limited liability companies in the state. If the chosen name is available then you will need to register the LLC name with the office of the Secretary of State. A name reservation is not necessary for California foreign LLC registration but you can apply for the same with the office of the Secretary of State pursuant to CA Corp Code §17701.09(a) and CA Corp Code § 17708.05 (2019). The LLC name can be reserved for a period of 60 days and the California SOS will issue a certificate of reservation for the same.
• Registered Agent: An important aspect of foreign LLC in California registration is designation of a registered agent for the service of process pursuant to CA Corp Code § 17708.02 (2019). IncParadise can be your California registered agent as we have the expertise and experience towards ensuring help with your California foreign LLC registration.
• Certificate of Good Standing: It is also known as the certificate of existence or entity status letter depending on the state your corporation is registered in. You will require a Certificate of Good Standing that has been issued within 6 months by a government agency in the state of formation. The certificate has to be submitted along with foreign qualification in California paperwork.
• Foreign LLC Qualification: If you want to apply for foreign LLC in California qualification by yourself then you need to download, fill, and submit the Application to Register a Foreign Limited Liability Company (Form LLC-5). It has to be submitted with the office of the California Secretary of State. You have to submit a current Certificate of Good Standing with the form along with a fee of $70. You can also avail of expedite services for California foreign LLC registration that are valid for documents being submitted in person (drop off) to their Sacramento office. There is an additional non-refundable $15 fee for counter drop off.

Do you want to form a Foreign LLC in California?

Need Any Assistance in Applying for California Foreign Qualification?

If you already have an LLC or corporation in any other state and if you are planning to expand to California then you will need to undergo the process of foreign qualification in California. As one of the leading registered agents in California, IncParadise can assist you with the process of California foreign qualification and also assist you with the process of incorporation in California.

Starting a Company in California

There are 4.1 million small businesses based in California today and stand among the top ten largest economies in the world. In 2019, the gross domestic product (GDP) was approximately $3.14 trillion with foreign direct investments controlling ownership in several businesses in the state. Entrepreneurs from several countries find it attractive to start a company in California as foreigners with Japanese entrepreneurs and firms leading the table with 3,880 firms followed by the UK at 2,303 and France at 1,888. You can also choose to register any type of business entity like LLC, professional corporations, limited partnerships, and other business entities and the California business environment will ensure your startup gets the initial positive thrust it requires.

California business or startup environment

The California business environment and startup ecosystem is different from that of any other state and this makes the state unique in terms of forming your first startup. As an entrepreneur in California, the business environment ensures strong economic growth but there are certain elements of the ecosystem that work together to aid in business growth. Some of the top elements are:

• It is an economy that grows constantly and consistently – One of the top reasons to start a business in California is the trillion Dollar economy, which is still growing at a steady pace. Today, California is considered as the Sixth Largest Economy in the world and accounts for almost 13 percent of the US output. The economy is extremely diversified and not dependent on any single industry. The single largest industry sector in this state is services and includes computer and software design, engineering, and motion picture production among others. Some of the other sectors driving the California economy include finance, export or trade, manufacturing, and tourism. The economic activity also differs from one region to another. For example, the key industries in the San Francisco Bay Area are High-tech manufacturing and Software development while key industries in Southern California are Motion pictures and tourism. These are some of the elements driving the strong economy and enabling the functioning of a robust California business environment.
• Foreign Trade and Trade Zones – One of the areas that attract entrepreneurs to start a company in California as a foreigner is foreign trade. California exported to approximately 227 foreign markets like Japan, Canada, Mexico, China, and South Korea in 2020. The exports from California in 2020 were $156.1 billion and that accounted for 10.9% of the total U.S. exports. Foreign direct investment (FDI) in the state was approximately $45.49 billion in 2019 and the top industry sectors for FDI are business services, industrial equipment, software & IT services, financial services, and communications. California is also home to the highest number of small and medium-sized enterprises (SME’s) in the trade sector including exports and imports. One of the salient aspects is the Foreign Trade Zone (FTZ), which is a key element in creating a high-end California business environment. The FTZ is responsible for providing exporters, importers, distributors, and manufacturers with opportunities that help in reducing U.S. Customs duties and for deferring payment until their product leaves the foreign trade zone. One of the top foreign trade zones is the City of Industry in Los Angeles County.
• California business or startup environment – California has been a leader where innovation and knowledge-based economy is concerned and it is home to several successful global companies that are globally renowned for entrepreneurship and creativity. The State launched the California Innovation Hubs (iHub) Program in 2010 with the primary objective of leveraging convergence between incubators, stakeholders, and investors for propelling startups towards growth and success. California Innovation Hubs (iHub) Program is one of the most advanced and forward thinking programs that ensure you can start a company in California as a foreigner and enjoy its many benefits. The iHub has helped in creating a robust innovation-based economic development support network across the state. There are 16 iHubs that have been responsible for making the California business environment highly creative and vibrant. Some of the top iHubs include the Sacramento iHub, iGATE iHub, CalValleyTech iHub, iHub San Joaquin, San Jose/Silicon Valley ET iHub, and Innovate North State iHub among others.

Steps to Form a California Company as a Foreigner

If you are an entrepreneur thinking if it is possible to start a company in California as a foreigner then the answer is yes. The second most important aspect is restrictions and California does not impose any kind of restrictions on entrepreneurs or startups registered in the state. It is important to note that the regulations and documents required to register a California business as a non-US resident would be quite similar to that of a foreign company. Let’s take a look at the various processes and steps that you need to take to successfully establish your business as a foreigner in California.

1. Prepare your California business plan

Every business needs a plan before they can actually start a business in California and this holds true for non-US resident entrepreneurs and business owners. A strong business plan can take a new business towards success and a weak business plan can lead to bottlenecks and problems. A business plan is essentially a business roadmap that contains the primary and secondary business objectives as well as strategies.

• Vision and Mission Statement
• Executive Summary
• Company Description
• Long-Term Goals
• SWOT Analysis
• Competition and Market Analysis
• Breakdown of Products and Services
• Marketing Plan and Sales Strategy
• Financial Projections and Funding

2. Secure business funding

If you are planning to start a company in California as a foreigner then there may be higher initial costs depending on the type of business activity like an IT firm will need investments in tech equipment. The thumb rule is that it will cost money to start any type of business and the expenses include cost of registration or incorporation in the state along with obtaining licenses and permits.

• Self-funding
• Small business grants in California
• Venture capital from investors
• Use crowdfunding
• Small business loans
• Small Business Administration investment programs
• Angel Investment
• Funding from Business Incubators & Accelerators
• Loans from Microfinance Providers
• California Small Business and Entrepreneurship Assistance Center Funding Opportunities

3. Choose a company name

A business name is as important to your business as are your customers because a customer can relate your business name to the product or services offered by your company. In a way, a business name can help in creating an excellent first impression hence it is important to choose the right name before you start a company in California as a foreigner. When choosing a business name, it is essential to ensure it is unique but not a tongue twister.

4. Choose a business entity

If you have decided to start a business in California as a non-resident or foreigner then the primary consideration should be the type of business entity you want to form. The different types of entity you can form in California include:

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

• Cost of new business formation or start up costs
• Taxation
• Continuity and Transferability
• Liability and Asset protection
• Sharing of profits

5. Choose a Registered Agent

One of the primary requirements in the state of California for new businesses is hiring registered agent services. This is especially true if you plan to start a company in California as a foreigner. If you were to form a foreign corporation then it is mandatory to designate a registered agent for the service of process pursuant to CA Corp Code § 2102 and 2111 (2019). A California registered agent is also known as an agent for service of process and is appointed by a company mainly for the purpose of accepting all types of official correspondence and legal notices. A registered agent like IncParadise will not only handle service of process but can help you register a California business and also provide other business related services. IncParadise is one of the leading registered agent service providers in California today!

6. Register your company with California Secretary of State

There are several processes that you have to undergo in order to start a company in California as a foreigner. The first and foremost is registration of your business with the California Secretary of State. If you are a non-resident planning to register a California business then you will need to apply for foreign qualification. The type of registration will be dependent on the type of entity.

Planning to start your new business in California?

7. Get EIN

If you are a Non-U.S. citizen and are planning to start a company in California as a foreigner then you will need to apply for and obtain an Employer Identification Number (EIN) without the need to have a Social Security Number (SSN). The EIN is a 9-digit unique identification number and is also known as a Federal Tax Identification Number (FEIN). You have to apply for the EIN with the Internal Revenue Service (IRS) and have to obtain it before you register a California business as a non-US resident. Since you will be incorporating or forming your new business in the US; EIN can be applied for online.

8. Open a bank account for your business

It is always recommended to open a business bank account if you are planning to start a business in California as a non-resident. A business bank account also known as a Business Checking Account will keep your business income and expenditure separate from personal income and expenses. This will also help you to manage expenses and file taxes. You can refer to our bank account opening guide to understand how business banking works in California or the U.S.

• Certificate of qualification or registration
• Federal Tax ID Number (EIN)
• Proof of address
• Photo ID (such as a valid passport)
• Copy of the Business License

9. Obtain necessary business licenses and permits

You can start a company in California as a foreigner in a variety of sectors but you will need to obtain a business license or permit first. Applying for and obtaining a business license basically means that you have the permission to operate your business or transact in the state of California. There is no separate requirement for non-US residents when applying for a business license except that you may require a single or multiple licenses depending on your business activity and location. Once you register a California business, you can apply for any of the following licenses:

• A general business license
• Business license/permits for specific industries
• County business licenses

10. Know about the annual and ongoing state filing requirements

Once you start a business in California as a non-US resident, you will need to maintain it and ensure all annual requirements are met. This will help in keeping your business status active while helping you avoid any penalties or fines for non-compliance or late filings. Different types of business entities have different annual and ongoing requirements and some of them are:

• Name registration renewals
• California business license or permit renewals
• Statement of Information – Initial and Biennial
• Franchise tax
• State Business Tax
• State Employer Taxes

Looking to Start a Company in California?

If you are planning to start a business in California as a non-US resident, you will require California registered agent services to help you with the formation or incorporation of your new business. IncParadise is one of the top California registered agents and we have helped thousands of companies to register a California business.

Doing Business in California

The California economy is the largest in the US with the gross state product at $3.02 trillion. It is also considered as the 5th largest economy in the world with the San Francisco Bay Area recording a GDP of $535 billion. It is home to more than 4 million small businesses spanning a huge variety of industries including 69,387 small business exporters. These numbers are astounding but the fact is that there are many startups that have climbed to the high growth stage with the help of small business grants in California. It is one of the most competitive markets in the US and the world and as a small business; you may need extra funds in the early stages of the business operations. This is where the new small business grants in California can provide the much needed relief.

Why do startups and small businesses prefer doing business in California?

California has been one of the favorite destinations for startups and small businesses since the mid-1960s and in the 1990’s it became famous for Silicon Valley, which was the epicenter of innovation in software, internet, user interfaces, and computer operating systems. It is not just the California economy that attracts entrepreneurs but also some of the opportunities that enable the creation of a pro-business environment. Some of the factors are:

• Networking: California is the home to several business opportunities and this is made possible through hundreds of events, trade shows, and conferences that keep taking place in the state throughout the year. These events provide the perfect platform for new as well as existing businesses.
• Grants: Every business needs funding for their business operations but there are times when an entrepreneur may have a great idea but no funds. The small business grants in California programs provide funds to such businesses.
• Industries: There are several different sectors or industries in which you can start your new business. Some of the fastest-growing industries include construction, healthcare, services, technology, agriculture, hospitality, tourism and the film industry.
• Talent Pool: One of the most important aspects of a new business apart from startup grants in California is the talent pool. The talent hired by a business eventually helps the business to achieve its marketing, sales, or financial objectives and California has a deep talent pool. California is home to some of the top universities in the world including Stanford, Caltech and UCLA.

CA Business Portal State Incentives, Tax Credits and Funding

Although a CA small business relief grant can be a boon for any startup, there are several other options that can help a new business financially like federal, state and local incentives. California has a strong incentive program for small businesses and you can choose from incentive categories by industry, business operation, and type. The California relief grant program is also an integral part of the business incentive program.

Incentives by Industry

In California, you can start a new business in just about any industry with the help of a CA small business relief grant. Each industry markets a different product or service and hence the type of incentive required would be in accordance to the type of industry although there are some general incentives that are useful for businesses in any industry like California relief grant program and tax credit or exemption programs. The incentives for small businesses are categorized according to the following industries:

• Advanced Manufacturing
• Agricultural/Timber Industry
• Biotech/Health Care
• Energy and Environment
• Film and Television
• Food Processors
• Manufacturing
• Recyclers
• Transportation

Incentives by Business Operation

Business incentives like the small business grants in California have a two pronged benefit as they help startups with financial aid through tax exemptions and training programs among others. Simultaneously, the business incentive programs like Opportunity Zone program and Foreign Trade Zones help the state to attract small businesses and startups. In California, you can apply for an incentive program based on the type of business operation. For instance, you can apply for a California relief grant program for the purpose of Business Expansion or Facility Improvements. The incentives for small businesses categorized by business operation include:

• Workforce Development Programs
• Business Expansion or Facility Improvements
• Hiring & Training Programs
• Startup or Small Business Support Programs
• Export-Import Business Programs
• Utilities
• Recycling

Incentives by Type

The key objective of an incentive is to address the existing or future requirement of a small business . For example, the CA small business relief grant program has been designed to help businesses impacted by COVID-19 to provide financial aid varying between $5,000 and $25,000 to eligible small businesses and is granted by the Governor’s Office of Business and Economic Development. You can also choose to apply for an incentive program based on type of program category, which are:

• Bonds
• Loans
• Grants
• Tax Credits and Exemptions
• Utilities

Financing opportunities

If you are an entrepreneur or are planning to start a new business in California then you may require initial funding to help with your business growth and scaling plans. Business industry experts and insiders believe that one of the primary causes of startup failure is lack of capital in the starting phase or in the business development phase. This is where state based financing opportunities can be quite beneficial like the small business grants in California, which can provide your business the necessary thrust. Financing opportunities in the state can be classified under:

• Agriculture
• Business Expansion/Facility Improvements
• Green Business/Clean Tech
• Exporting/Importing
• Startup or Small Business Support

Start a California Business Today!

Other Recent Funding Opportunities Published in the Local State

Every year, the state of California as well as the Federal government creates and implements small business grants in California so that small businesses can benefit from it. A surprising fact is that the federal budget concerning government grants is in excess of $90,919 million with additional local government funding amounting to $61,971 million. Some of the recent opportunities that exist for small businesses in terms of state funding are from a variety of sectors like education and training to innovation and conservation. For example, the Conservation Innovative Grants Program for the agriculture, environment, and natural resources sector offers a funding of $150,000 for eligible applicants. There are several other startup grants in California available through the recent funding opportunities including:

• Cooperative Ecosystem Studies Unit, Californian CESU – Funding amount of $48,000 (G20AS00048)
• Cooperative Ecosystem Studies Unit, Californian CESU – Funding amount of $25,000 (G20AS00078)
• Cooperative Ecosystem Studies Unit, Californian CESU – Funding amount of $54,000 (G20AS00065)
• INRMP Support Ft Hunter Liggett & PRFTA, California – Funding amount of $89,987 (W9126G 20 2 SOI 4876)
• 2021 NOAA California Bay Watershed Education and Training (B-WET) Program – Funding amount of $100,000 (NOAA NOS ONMS 2021 2006749)
• Head Start/Early Head Start Grantee-Communities in the state of California – Funding amount of $59,527,092 (HHS 2021 ACF OHS CH R09 1860)

Ready to Start Business in California?

It is never an easy decision to start a new business as making a startup fully functional entails several processes right from creating a business plan to applying for small business grants in California and eventually filing of formation or incorporation documents. The process doesn’t end here as a business has annual maintenance requirements and should remain compliant with all California state laws and regulations. This is where IncParadise has its expertise and experience. We are an expert incorporation service provider in California and can help you to start your business in the state.

Doing Business As or DBA in California

This guide has been created specifically for entrepreneurs and business owners and its objective is to provide information on DBA in California, the need for a DBA, filing and managing a DBA.

What is DBA in California?

You have an idea and you want to make it operational by starting a business. One of the foremost requirements would be naming your business as the entire branding, marketing, and financial strategies will be carried forward using the business or legal name. DBA or ‘Doing Business As’ is a type of business name and is also known as fictitious business name in California, an assumed name, or even a trade name. So, if you are planning to conduct your business under a name other than your own name then filing a DBA in California is necessary.

For example: If an entrepreneur named Jason Hughe starts a business and the name of his business is Jason Hughe Landscaping Services then filing a DBA in California is not required. However, if the name of the business is “Hugh Landscaping Services” then he would be required to file a DBA online or offline as it is not his full name or a combination of his name and the products or services offered.

When do you need a DBA in California?

Every new business or startup has a true name or a legal name and this name has to be registered in the state of formation, which is California in this case. The filing of DBA in California will be driven by the form of business as well as other needs of the business. It is hence important to identify the reasons that would require you to file a DBA online or offline. Some of the common reasons or when startups require DBA includes:

• Type of business: The most common and easiest form of business is a sole proprietorship firm. If you are planning to form a sole proprietorship or partnership firm then filing a DBA in California is one of the simplest and least expensive ways for using and registering a business name. A DBA will help you to create a separate professional identity for the business.
• Multiple businesses: If you are planning to operate multiple businesses then it can be quite a complex and expensive affair especially filing of documents pertaining to each business. A DBA or fictitious business name in California will help you in operating multiple businesses without having to form separate companies.
• Banking: If you are starting a new business then having a business banking account can be quite helpful. Filing a DBA in California is required by sole proprietorship or partnership firms prior to opening a bank account. There are many banks that may want to see the DBA name or assumed name certificate as a proof of registration.
• Different product of service: If your company wants to offer a product or a service that is different from the existing registered name then you will need to file a DBA online or offline in California. For instance, if your business is selling shoes but now you want to expand the business into sports equipment but as a separate entity then a separate assumed name or DBA will be required for the new sports equipment business.

Filing DBA in California

You can form a sole proprietorship or partnership in California or any form of business for that matter but if you have chosen a business name that is different from your own name then you will have to file a DBA. There is a process that you have to follow for registering the fictitious business name in California including conducting a DBA California search. Let us look at the important steps towards filing a DBA successfully in California.

Do name search

One of the first steps towards registration of a fictitious name or ‘doing business as’ name is conducting a DBA California search. Once you ideate and identify a name for your business, it is important to make sure it is not similar to any other business name in the California SOS records. Conducting a business name search in the records will ensure your fictitious business name in California is unique and will also help you to find out if your chosen name is available or not.

File a Fictitious business name statement

The state of California requires businesses transacting in this state under any name other than the owners name to file a DBA pursuant to CA Bus & Prof Code § 17910 (through 2012 Leg Sess). We at IncParadise can help you to register your DBA in California and also provide information pertaining to various aspects of filing a DBA. However, it is important to note that after conducting a DBA California search, you will have to file the chosen name with the office of the county clerk and not the Secretary of State unlike in many other states. You have to file what is known as a “Fictitious business name (FBN) statement “. Some of the important aspects to consider when filing a fictitious business name in California are:

• Since it has to be filed at the county clerk’s office; you need to check with the county your business is operating from. The forms and fee may vary from one county to another.
• You can check with the clerk’s office or the county record office to determine the fee
• The Fictitious business name statement should contain information like your (business owners) name and address, your chosen DBA name or fictitious business name in California, business address, state business ID number, and type of business.
• The fictitious business name statement has to be notarized by partners, members, or an officer of the said company, or even by the owner himself if it is a sole proprietorship firm.
• One of the requirements for filing a DBA in California is that you will be required to submit the required documents or paperwork within 40 days of starting the new business. Once you have submitted the statement, it will expire after a period of 5 years from the filing date.
• Depending on the county where you are filing the fictitious business name (FBN) statement, you can submit the statement in person or by mail. In some counties you may be able to file DBA online. In San Diego County, the office of the County Clerk strongly recommends filing of the FBN in person. The filing fee is $42.00 for one DBA and one business owner on the statement. There will be an additional fee of $5 for each additional owner.

Publish a California fictitious business name statement

The final part of the process of filing a DBA in California is publishing a fictitious business name (FBN) statement. You will be required to publish this statement if:

• You are filing a DBA in California for the first time
• You have filed in the past but have made changes to the information provided the first time
• If your previous statement expired 40 days have passed beyond the expiration date
• If you are filing a Statement of Abandonment or a Withdrawal of Partnership

• Depending on the county of FBN filing, you will have to choose a legally adjudicated newspaper company. For example, if you file a DBA online in San Francisco County then the Bay Area Reporter or San Francisco Chronicle would be the newspapers you can publish in.
• Inform the chosen newspaper that you have recently filed a Fictitious Business Name (FBN) Statement and ensure you satisfy the requirements of the chosen publication.
• Provide the concerned publication with a copy of your FBN filing
• The first publication should be released within 30 calendar days from the date of filing a DBA in California. It is important to note that the FBN statement will automatically expire after the 30 day period. There are no extensions and you will have to file the FBN statement again with an applicable fee.
• You will have to ensure it is published once a week for four consecutive weeks
• Once it has been published 4 times, the newspaper company has to send you a “Proof of Publication” in the form of a signed affidavit indicating the dates of publishing.
• You will then be required to submit this “Proof of Publication” with the County Clerk’s Office within a period of 30 days from the date of the 4th publication.

Managing California DBA

A fictitious business name in California is required by different types of businesses and post filing a DBA in California you have to manage it according to the needs of the business. There are three options available concerning a DBA, which includes renewal post 5 years, changing the assumed name, and cancelling the DBA permanently. Let us take a look at each of these three options.

Renew California DBA

A fictitious business name in California once filed will expire after five years from the original filing date at the office of the County Clerk. At this point, you will have to apply for a renewal of a fictitious business name (FBN) statement and it has to be filed prior to the expiration date if you want to continue transacting business in the state under the same name and if there are no information changes since the filing of the original. The fee for filing a DBA in California or renewal will vary from one county to another.

An example: Initially, if your filing a DBA in California took place in Los Angeles County then your renewal will also take place in the same county. You can file DBA online for renewals by paying a fee of $26 along with a fee of $5 for each additional business owner or name.

Change California DBA

There are circumstances and scenarios where sometimes businesses want to change their existing name. If you have already filed a DBA and want to change it then you will have to start by conducting a DBA California search for availability of the new name. You will have to follow the same guidelines followed while choosing your first or initial fictitious business name in California. The following steps will help you through the process:

• The first step is to obtain the DBA name change form also known as the amendment to DBA name-registration form. The form is available at the office of the county clerk.
• Complete the filing a DBA in California amendment form and provide the new name along with the previous DBA name as well as the date it was registered
• Submit the amendment or DBA change form by mailing it, submitting in person or filing a DBA online if the option is available
• Submit it along with the fee as mentioned by the office of the county clerk
• Publish a notice in the local newspaper regarding the DBA name change

Cancel California DBA

Once your filing a DBA in California is submitted, you can cancel it if there is a need for such a step. The procedure for cancellation is different as you will be required to submit a statement of abandonment of the use of a fictitious business name in California. This statement will be executed in a similar manner as that of a fictitious business name (FBN) statement and has to be filed with the office of the County Clerk. Once filed, the statement of abandonment has to be published in a legally adjudicated newspaper in the county. You will have to ensure it is published once a week for four consecutive weeks. You will then have to submit an affidavit showing its publication with the respective county clerk office.

Still have any questions about Filing DBA?

The process for filing a DBA in California may be confusing owing to it being filed with the county clerk office and not the Secretary of State.