Start a Corporation in California

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California is a popular state for business incorporation due to the various benefits it offers. From flexible management structures to increased anonymity for owners, there are many reasons why entrepreneurs choose to start a corporation in California.

Why start a corporation in California with Corporate Creations?

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Online California incorporation

By working with Corporate Creations, you can streamline the process and carry it out entirely online, saving time and reducing paperwork.

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Expert guidance

Our team of experts are well-versed in starting corporations in California. We’ll handle the entire process for you from start to finish, ensuring nothing goes amiss.

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Additional business support

Once you’re incorporated, you can partner with Corporate Creations to ensure business runs smoothly. From working as your registered agent to filing your yearly annual statements, we can help.

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How to form a corporation in California

Forming a corporation in California may seem daunting, but there are fewer steps than it seems. Check out the checklist below to see what the process of incorporating in California involves.

1. Choose your corporation type

There are various corporation types that you can start in California. The most popular types are C corporations and S corporations, but you can also opt for a non-profit or professional corporation depending on what best fits your business needs.

Choose your corporation type
Decide on a company name

2. Decide on a company name

After choosing a corporation type, you’ll decide upon a business name. It’s important to choose a name that reflects your brand, but which is also available. Legally, your business name cannot be the same as or similar to another registered business name, so most business owners do a California corporation name search to check that their chosen name is free to use.

3. Get a registered agent

The next step to incorporating in California is to get a registered agent. A registered agent is a legal requirement for businesses operating across all 50 U.S. states and acts as the first port of call for your business, receiving legal documents on your company’s behalf. You can appoint a legal entity or third-party representative as your registered agent. Corporate Creations offers registered agent services across the entirety of the U.S. and can support you with all your representation needs.

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choose an incorporator

4. Choose an incorporator

Your Articles of Incorporation must list an incorporator, who signs the Articles of Incorporation and files them with the Secretary of State. Most businesses opt for an attorney to take on this role, but you can choose anyone to act as your incorporator, including third-party partners like Corporate Creations.

5. Issue shares

Each state has varying rules on how many shares of stock the corporation can issue. If you authorize more than one type of class of stock, you’ll need to provide the state with more information: the number of shares in each class and the rights given to each class. There are specific rules for shares of stock in California:

  • You must authorize at least one share but can create more.
  • You can also issue more than one class of stock; however, all series of stock within a specific class will have the same rights and privileges.

We recommend speaking to a legal professional when issuing shares to ensure you abide by California state law.

Decide on a company name
File the Articles of Incorporation

6. File the Articles of Incorporation

After you’ve gathered all the necessary information for the Articles of Incorporation, you can file these with the Secretary of State. Corporate Creations can do this on your behalf based on your filing preferences; either online, by mail, or in person. Once filed, your corporation will officially be formed! There are a few additional steps to take after filing the Articles of Incorporation: check out our comprehensive guide on how to start a corporation for more guidance on what to do post-filing.

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California corporation FAQs

There are many reasons why entrepreneurs opt to form a corporation in California instead of other states. While California taxes companies at a rate of 8.84% (as of 2024), it offers various tax credits to businesses, helping them reduce the amount of tax they pay. There are also laws in place that protect minority shareholders, so that they have the same rights as other shareholders in the same class. Furthermore, more privacy is allotted to shareholders and management in California than in other states, with only the director and resident agents needing to be disclosed in the annual Statement of Information.

From a business perspective, if your company is based in California, it makes sense to incorporate there. You will have a better understanding of local laws, and access to a large workforce. Plus, if you are sued, you will be sued in-state, which could offer better legal protection for your company.

There are two ways in which you can file the Articles of Incorporation and start your business. The easiest, and fastest way is to file online. However, you can also file your articles in person. In both cases, the time it takes for documents to be reviewed and your business to be officially incorporated varies. On average it should take no more than 30 days to be officially incorporated once you have filed the necessary paperwork.

That depends on your business needs and where your company is located. It’s important that you do the proper research and seek out legal guidance to determine which state is the best for your business. California and Delaware have always been popular options for incorporations, but Wyoming and Nevada are now also increasing in popularity with entrepreneurs.

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