How to Start a Business in California (Step by Step Guide)
Looking to start your own business in California? If so, then you have come to the right place!
We have provided step by step instructions on how to incorporate your business in California (CA). From selecting the business entity type to forms to be filled, we have covered it all.
Let’s get Started
The first step in setting up your business is to select the business structure.
Broadly there are 4 types of business entities:
- Limited Liability Company (LLC) (Most Popular)
- Corporation
- Sole Proprietorship
- Partnership
Each business structure differs on the basis of taxation, asset liability and estate planning. We have written a detailed tutorial on how to choose a business entity type for your business here.
Below we have given a broad outline of the steps involved in registering an LLC or Corporation in California.
Clicking on each step, opens up a detailed guide on how to complete it.
| Agency Name | California Secretary of State – Business Programs Division |
| Form(s) to be filled | Articles of Organization (Form LLC-1) |
| Mode | Mail or online |
| Name Reservation | Optional, Fee $10 (Online) |
| Filing Fee | Filing: By mail $70/In-person drop $85 Initial Report: $20 |
| Time | 1-2 weeks (Option to expedite is available) |
| Law | Corporations Code TITLE 2.5 – LLC [17000 – 17656] |
Summary:
- Check for availability of the business name
- File for Business name reservation
- Select Registered Agent
- Fill Articles of Organization (Form LLC-1)
- Create an Operating Agreement
- Get an EIN Number
- Complete LLC Statement of Information (Form LLC-12)
- Apply for California State Tax Identification Number
- (Ongoing) Pay franchise tax and file annual report
| Agency Name | California Secretary of State – Business Programs Division |
| Form(s) to be filled | Articles of Incorporation (Form ARTS-GS) |
| Mode | Mail or online |
| Name Reservation | Optional, Fee $10 (Online) |
| Filing Fee | Filing: By mail $100/In-person drop $115 Initial Report: $25 |
| Time | 1-2 weeks (Option to expedite is available) |
| Law | California Corporations Code – CORP |
Summary:
- Check Business Name Availability
- File for Business Name Reservation
- Select Registered Agent
- Fill Articles of Incorporation (Form ARTS-GS)
- Draft Bylaws
- Get an EIN Number
- Complete Statement of Information for Business Corporations (Form SI-200)
- Apply for California State Tax Identification Number
- (Ongoing) Pay franchise tax and file annual report
References:
https://codes.findlaw.com/ca/corporations-code/
Fact-checked on 24/07/2018