How to Incorporate & Start a Business in California

Business resource centers are available to individuals starting new businesses.

Corporations are formed to protect the rights of the shareholders. Corporations can be made up of a group of people or established as a single person corporation. In the United States there are three major types of corporations: a Close corporation, S corporation or a C corporation. Companies incorporate in the state where the company plans to operate the business. Each state governs the operations of the corporation differently. Businesses interested in incorporating in the state of California can get the assistance of small business resource centers throughout the state for help in starting a business.

Things You'll Need

• Articles of incorporation
• Filing Fee(s)

Instructions

1. Search the California database for corporation names already on file with the state. The corporation name can't be the same or too similar to a name already on file with the secretary of state. California does not allow requests via email or online.

2. Fill out the request form to reserve the name of the corporation. The name reservation request form can be downloaded off the secretary of state's website. The name reservation is good for up to 60 days.

3. Mail the completed request form in to the California Secretary of State along with a $10 fee (as of 2010) to the Name Availability Unit, 1500 11th Street, 3rd Floor, Sacramento, CA 95814. Include a self-addressed stamped envelope with the form and fee.

4. Prepare the articles of incorporation for the organization. A business plan will help establish a clear mission statement, organize a list of board members and give a clear purpose for forming the organization. Consulting a filing attorney is recommended by the California Secretary of State to ensure proper filing procedures are adhered to.

5. File the articles of incorporation with the California Secretary of State's Document Filing Support Unit before the 60-day name reservation status expires. An original copy of the articles and one copy along with a nonrefundable $100 filing fee (as of 2010) should be submitted to P.O. Box 944260, Sacramento, CA 94244-2600. The filing fee can be paid by check or money order.

6. Apply for a federal identification number with the Internal Revenue Service. All businesses in California must register the business for the purposes of taxation. Corporations are required to pay taxes on an annual basis.

7. Determine if an operating permit or business license is needed to operate the corporation in California. Depending on the type of cooperation, fines and penalties can be incurred if the proper documentation has not been obtained by the state.

References

• California Secretary of State
• Business Search
• Articles of Incorporation