What we do?
We can form your California Corporation or LLC the very next day with a feature rich package for much less than you would normally pay. We have formed thousands of entities for clients from all over the world in the last 19 years!
If you order before the deadline, your entity's formation date should be next day. Formation confirmation documents will be sent out by email next day by the close of the day.
Our Next Day formation package includes all the features that you need and nothing that you don't need.
1. NEXT DAY FORMATION: RECEIVE FORMATION DOCUMENTS BY EMAIL NEXT BUSINESS DAY AFTERNOON.
If you order before 1 PM Pacific Time any business day during this promotion, your entity should be formed next day barring any issues from State of California (Note: We prepare and hand deliver the Articles to California Secretary of State's office in Sacramento, CA). California state formation confirmation documents (i.e. Filed Stamped Articles of Organization/ Incorporation) will be sent to you by email next business day afternoon. Usually after 4 pm PT.
Please note that State of California may delay formation due to reasons beyond our control.
2. STATE REGISTRATION FEES ARE INCLUDED
The price includes California Sec of State fees to register the entity. Therefore, it includes: State Articles of Incorporation/ Organization filing fee to form the entity as well as state expedited processing fee. On top of that it also includes other features as listed.
3. INSTANT FEDERAL TAX ID (EIN)
There is no fee to be paid to obtain the Tax ID (EIN) from the IRS (US Citizens/ permanent residents). We will provide you the guidelines to obtain it direct from the IRS instantly (you do not need to send us your SSN, just submit it to the IRS to obtain the Tax ID).
4. AFTER WE RECEIVE YOUR ORDER
We will complete name availability search and prepare the Articles to submit to California Sec of State to register the entity. Note that we may need to email the Articles to you to sign, scan and send back to us. In that case, we must receive the form by 1 PM PT.
Upon state approval, the state filed stamped documents will be emailed to you Next Day.
5. AFTER YOUR ENTITY IS FORMED
Barring any issues from California Sec of State the entity should be formed Next Day. The State Filed Stamped copy of the Articles should be emailed to you next business day afternoon.
6. REQUIREMENTS AFTER A CORPORATION IS FORMED
After a corporation is formed, an organization meeting must be held for the purpose of adopting the by-laws, electing directors and transacting any other business. We will provide you the initial meeting minutes and the sample ByLaws.
Corporations are required to keep correct and complete books and records of accounts and must keep minutes of the proceedings of its shareholders, board of directors. We will provide the sample meeting minutes to do so.A corporation must also keep a record containing the names and addresses of all shareholders, the number of shares (and class of shares - if any) held by each shareholder and the dates when they respectively became the owners of record thereof. We will provide stock ledger to do so.
In addition, a meeting of shareholders must be held annually for the election of directors and the transaction of other business on a date fixed by the board of directors. We will provide you the sample meeting minutes for annual meeting.
Please note that the by-laws, corporate books and records are not required to be filed with the California Sec of State.These are internal documents maintained by the corporation.
7. FRANCHISE TAX AND STATEMENT OF INFORMATION FILING
Entities formed in California are subject to a minimum Franchise tax of $800 annually. Franchise Tax Board will send you a letter with instructions after your entity is registered. Note that the francise tax needs to be paid within a specific time period (usually before the end of 4 months 15 days of the tax year. Please check Franchise Tax Board's website or call them for more details).
Every LLC and Corporation registered in California is required to file a form called 'Statement of Information' with the Secretary of State of California providing the names/ addresses of the entity's officers etc. within 90 days after the filing of its original Articles. Corporations then need to file annually and LLCs biennially thereafter. The filing fee is $20 for LLCs and $25 for corporations. This statement must be filed even if the entity is inactive, otherwise, a state penalty of $250 will need to be paid if not filed on time. After formation, we will provide you this form and the guideline to file it with State of California.
When is the first Statement of Information due: within 90 days after the filing of its original Articles.
1) THE NUMBER ONE REASON:
An LLC has a major advantage: LLC laws donot allow a lawsuit to be filed against a member of the LLC for the liabilities of the LLC. Whereas the main officers of a corporation are routinely named as defendants in a lawsuit filed against the corporation. Therefore, the member's personal assets are safe unless he/she personally guarantees a debt.
2) 'PASS THROUGH' OF PROFIT AND LOSS:
All the profits and losses of the LLC are taxed on the member's personal income tax returns. Meaning if you are a single member of an LLC, you will report the profit or loss of your LLC in your form 1040. As such, an LLC offers the benefits of a regular Corporation without separate taxation. As with a partnership or a Sub-S corporation an LLC is a Tax Pass through entity.
What this means is: LLCs by default do not pay taxes. All income and losses pass-through to you as a member. So if you have losses in your LLC you can claim it against your personal income on your individual 1040. It is great for a start up business.
3) ABILITY TO EASILY CHANGE TO ANOTHER FORM OF ENTITY:
It's easy to change your LLC to another form of legal entity. For example, you can change it to a C-Corporation. If you are starting a company, it may be beneficial to start a company as an LLC and write off the initial losses from your personal income and change to a C-Corp when the company becomes profitable.
4) FLEXIBILITY WHILE ALLOCATING PROFITS OR LOSS:
This is a major benefit of an LLC. Unlike a Subchapter S Corporation where you are restricted as to how profit and loss are distributed among the owners and the type of losses you can pass-through to the owners, the members of an LLC can allocate ownership, profits and loss among the members anyway they like. In case of a C-Corporation, the profits and loss of the corporation cannot be allocated among the shareholders.
5) BUSINESS ASSET PROTECTION:
LLC held assets cannot be seized by a member's creditor. Even if the creditor gets a judgment against a member, the creditor cannot get to the property owned by the LLC. The creditor has what is known as charging order remedy. Under which, if the creditor gets a judgment against a member of the LLC, the creditor is only permitted to collect any actual cash distributions that are made by the company to the member. Therefore, if no distributions are made to the member, there is nothing to collect.