Register Company in California

Register company in California  

• Willing to open a business in California? You will be required to register company in California to operate your business legally. Engaging with Tetra Consultants can help you identify all your business needs and enable you to register company in California without much hassle. Our services will give you extra time to be dedicated to other important aspects of your business.  
• We value our clients’ time and money hence; we make sure to deliver our services within the prescribed period. Our experts ensure that we provide quality and timely services to our clients to assure client satisfaction by providing them with fully operational and functional registered businesses in California.  
• Our extensive service packages include: 
• Register company in California  
• Local registered agent and registered address 
• Corporate bank account opening services  
• License applications (if required) 
• Annual accounting and tax services 

What are the benefits of registering a company in California? 

Tax flexibility 

• You can experience a moderate rate of tax being charged. Moreover, California offers several tax credits to corporations to help them to grow.  
• The attractive tax regime helps in getting the attention of various entrepreneurs and investors. 
• There are various tax credits provided in California which include capital gain exemption which is applicable for shares of small business corporations only. Moreover, after you register company in California, you will get access to corporate small business tax rates which provide exempted tax rates for small businesses.  

Credibility 

• Registering in California increases the credibility of the business. The certificate of registration helps businesses certify their credibility and also helps in proving the business’s legal identity to others.  
• Many big companies before starting the engagement with other businesses make sure that those businesses are registered as, the registered businesses have a sense of security associated with them assuring the big companies of the business credibility.  

Protection from lawsuits 

• When businesses get registered in California it builds a corporate shield that separates the personal assets from the business assets eventually protecting the personal assets from business-related lawsuits.  
• Thus, incorporation protects the personal assets of the owner from lawsuits related to the business. This provides limited liability protection to the business owners eliminating the risk of personal property.  

Thriving business community 

• One of the major benefits California has is its popularity because of which California is enriched with a thriving business community and many opportunities. The large customer base and the popularity of California are a step ahead of the global platform. 
• The thriving business community environment creates many opportunities for entrepreneurs. Innovations and innovative ideas can be sustained in such a competitive market easily making it a hub for innovative ideas and businesses.  

Management flexibility 

• If you are willing to register company in California you must be aware of the benefits that come along with it. California laws require three officer positions in the filing which makes the management team strong and flexible. The officer position includes president, chief financial officer, and secretary.  
• The law provides that these seats are to be filled before registering the company, these fields can be filed by a single person too. This allows flexibility when it comes to registering your company while filing out your business leadership team in the future.  

Can a foreigner register company in California? 

• Yes, there are no restrictions on foreigners willing to register company in California and it is possible for non-US residents to run a business in California. However, the foreigners will be subjected to some of the additional requirements which are mandatory to be complied with. To register company in California the foreign entity will be required to file a statement and designation by the foreign corporation with the California Secretary of State.
• Additionally, foreign entities will also be subjected to file fees for foreign corporations which may vary from a few hundred dollars. Further, the application for registration will also require information about the company, country of incorporation, and address of the principal executive officer who can be a non-US resident. Moreover, foreign entities will be subjected to submit a valid certificate of good standing by an authorized public official of the foreign jurisdiction under which the business was incorporated.  
• It is essential to note that the requirements of a foreign entity may vary depending on the nature of the business and the business entity chosen to be incorporated. Thus, if you require a specific requirement for a foreign entity willing to register company in California or want to know more about California foreign LLC registration, Tetra Consultants can guide you through the process and can make the journey of registration simple, easy, and quick.  

How much time does it take to register company in California and open a corporate bank account? 

• To register company in California might get complex and difficult for you. Tetra Consultants with their team of experts can help you with registration of either your corporation or LLC registration in California with much ease and in the designated timeframe.  
• It might take up about 2 weeks for any company willing to register in California if you engage with Tetra Consultants. After starting engagement with Tetra Consultants, our experts will receive the due diligence from the directors and shareholders of the company. Our experts will then search for the best and preferred name reservation for the company to use.  
• Throughout the process of registration, our experts will handle all the paperwork and legwork for you. We ensure that you can register your company without leaving your desk.  
• After completing the registration process Tetra Consultants can help in opening a corporate bank account in California for managing all your business transactions. We ensure that you can open a bank account from your comfort as we will be presented in the bank on your behalf.  
• Tetra Consultants can open a corporate bank account within 4 weeks of incorporation. Once the bank account and the business get fully operational, we will post you all the necessary documents of your business and bank account for future reference. 
• Hence, you can expect your company to be fully functional and operational within 6 weeks of engagement with Tetra Consultants.  

Types of business entities to consider when you register company in California?  

• Registering a company might be a confusing and time-consuming process that involves selecting the correct and appropriate business structure for your business which will be beneficial for the owner of the business.  
• If you are planning to register company in California, you can choose from the business structures mentioned below: 

Sole proprietorship 

• A business fully owned and managed by a single individual will be a sole proprietorship. A sole proprietorship business structure is one of the easiest structures to set up. However, the proprietor of the business is liable for all the debts and liabilities of the business as the business does not have any separate legal identity.  
• It is the most basic type of business structure to establish which can be shifted to another business structure for business owner convenience. Additionally, sole proprietorship is only available to individual business owners and does not require the filing of any formal business information.  

Partnership 

• A partnership is a business structured form when two or more people co-own a business and share the profits and losses of that business. In California, if you are looking to register a partnership you need to decide which type of partnership is favourable for your business as there are three kinds of partnerships present in California which are as follows: 
• General partnership: A partnership formed between two or more persons jointly agreeing to carry on a partnership. In this partnership, formation is not dependent on any formalities and each partner has an equal right to participate in the management and control of the business. Additionally, these partnerships make each partner jointly and severally liable for the business obligations, implying any partner can be held responsible for the wrongdoings of another partner. Moreover, registration is not mandatorily required but a statement of partnership authority is to be filed with the state to register.  
• Limited partnership: This is a business entity that comprises general partners and other partners who manage the business and those partners that contribute to the capital of the business. This partnership structure helps in attracting investors as well as tax rebates from the government. Further, there are fewer formalities involved which makes it difficult to pierce the limited partnership veil and go after limited partners’ personal assets.  
• Limited liability partnership: It is a comparatively new form of business entity that provides liability protection as well as passes through tax statutes without the complications of the corporation. It is a mixture of corporation and partnership which provides the owner with the best of both worlds. Moreover, registering an LLP would provide liability protection, tax benefits, and simplified governance because of the lack of complexities.  

Corporation 

• The corporation is one of the most common business structures in California. The structure provides protection of shareholders from personal liability. It is a legal entity that has a separate legal entity from that of its owner. Corporations can sell or buy back their stocks and bonds to invest in their capital.  
• Accordingly, minimum regulatory requirements for a California corporation can be summarized as below:  
• A minimum of three directors, unless there are less than three shareholders. 
• No residency requirement for directors as well as for shareholders of the corporation. 
• The Articles of Incorporation or the corporation’s bylaws must state the number of directors that will constitute the corporation’s board of directors; and 
• No minimum or maximum capital requirement mentioned by the California Corporations Code
• Generally, corporations can be divided into three kinds which are C corporation, S corporation, and California statutory close corporation.  
• C corporations: It is probably the most well-known corporation which is an old, well-established, and common form of legal business entity controlled by state law. A corporation is generally managed by a board of directors also, the board of directors also appoints the corporation’s officers. The day-to-day operations of C corporations are handled by the corporation’s officers. Thus, minimum statutory requirements are as follows: 
• Must have at least three directors, unless there are less than three shareholders, in which case the number of directors may be equal to or greater than the number of shareholders; 
• Must have a chairman of the board of directors or a president or both; 
• Board to determine the secretary, a chief financial officer, and such other officers with such titles and duties; 
• The default tax designation for professional corporations in California
• Must file an Annual Statement of Information every year.  
• S corporations: It is a corporation that elects to be treated as a pass-through entity for purposes of federal taxes. These corporations are exempted from paying federal income tax. Moreover, these corporations attract investors through selling shares of stock however, the S corporation cannot go public and thus have a limited ability to sell their shares. Thus, minimum statutory requirements are as follows: 
• Must have at least three directors, unless there are less than three shareholders, in which case the number of directors may be equal to or greater than the number of shareholders; 
• Must have a chairman of the board of directors or a president or both; 
• Must file California S Corporation Franchise or Income Tax Return (Form 100S); and, 
• Must pay the $800 minimum franchise tax annually or 1.5% of the corporation’s net income, whichever is greater.
• California Statutory Close Corporation (CSCC): The California Corporation Code allows the creation of CSCC. only some of the qualifying businesses can form a CSCC. Moreover, the shareholders of such corporations are given direct control over the corporation. Additionally, there are fewer requirements to create such an organization which makes it harder for the creditors to go after the personal assets of the shareholders. The requirements of such corporations are like S corporations and C corporations in terms of shareholders and directors; thus, other specific requirements of such corporations include: 
• Cannot trade publicly; 
• Has no minimum requirement for shareholders; and 
• Granting to shareholders preemptive rights to subscribe to any or all issues of shares or securities. 

Limited Liability Company (LLC) 

• An LLC registration in California is a process that generally does not involve complexities like corporations and provides protection from the liabilities of a business. California LLC registration provides you with the liability protection of a corporation and no payment of federal income taxes like a sole proprietorship, S corporation, etc.  
• Accordingly, a minimum regulatory requirement for a California LLC can be summarized below:  
• At least one shareholder of any nationality; 
• At least one director of any nationality (can be same as shareholder); 
• No minimum capital requirement; 
• A registered agent with a physical address in California; 
• Filing of Articles of Incorporation, and statement of information with the state secretary.
• Annual tax of US$800 if they do business in California or if the Secretary of State has jurisdiction over them. 
• California foreign LLC registration will provide the business with liability protection, taxation benefits, fewer and more lenient formalities, and enhanced credibility of business.  

How to register company in California? 

• To register company in California, a business might need to follow various steps and procedures which might get confusing. Tetra Consultants can help you to register company in California on your behalf while taking care of all the compliances required by your businesses. A generalized procedure for registering a company is as follows: