What it is
Setting up the legal entity your business will trade through, and registering it with the state and the IRS so it can open a bank account, hire people and file returns.
Who needs it
- Anyone starting a business in California
- A sole proprietor whose business has grown past the point where that still makes sense
- A foreign owner forming a U.S. entity from outside the country
- Someone forming the company in another state, such as Delaware, Nevada or Wyoming
- A company formed outside California that is starting to do business here and must register in California
What we do
- Talk through LLC or corporation, and whether an S-corp election fits, against how you actually intend to take money out
- File the formation documents with the California Secretary of State
- Obtain the federal EIN, including for owners without a Social Security number
- Prepare the S-corp election where that is the right answer, and file it inside the deadline
- Set up the registrations the state expects in the first year
- Prepare and file the California Statement of Information
- Change an existing entity: an LLC or C corporation electing S-corp status, or an LLC moving between one owner and several
- Form companies in other states, such as Delaware, Nevada or Wyoming, when that suits the business better than California
- Register an out-of-state company to do business in California, with the Secretary of State and the Franchise Tax Board
- For a U.S. corporation at least 25% foreign-owned, or a single-member LLC with a foreign owner, set up the yearly Form 5472 filing with the IRS; missing it carries a $25,000 penalty
What to bring
- The name you want, and a second choice in case it is taken
- Who the owners are and what share each holds
- A U.S. address for the business
- Identification for each owner — passport is fine for a foreign owner
What happens next
We talk first and decide the entity type before any filing fee is spent. Filing usually takes a few business days once the name clears.
