Registration of a company in California

Name of service	Bronze	Silver	Gold	Platinum	Brilliant
Company name verification and reservation Verifying the availability and reserving of your preferred company name in the registry
Company registration (corp., LLC) , including state fees Preparation and submission of all required documents and fees to the relevant government authorities for company registration, ensuring a streamlined process for our clients
Memorandum of Association Preparation of the memorandum of association, which defines the procedure for the creation of the company; the authorized capital of the company; the size and nominal value of the shares of the founders, as well as the order of payment
Minutes of the meeting of directors of the company Document preparation necessary for the legal registration of directors within the company structure
Certificate of incorporation Provision of international standard certificate of incorporation for your company
EIN assignment with the US IRS Obtaining an EIN (Employer Identification Number) from the Internal Revenue Service (IRS) business number required for a corporation or partnership that uses hired labor and in a number of other cases
Company seal Production of the company seal
Obtaining an ITIN from the IRS Conducting the procedure for obtaining an ITIN - the company's tax number, which is necessary to obtain an EIN (employer's tax number) in order to open a corporate bank account in the U.S. Consultation regarding the assignment of an ITIN to other persons besides the owner of the company
Assistance in opening a corporate bank account in the payment system Collection, processing and filing of the documents required for opening a corporate account with a payment system, including consultation of appropriate jurisdiction
Assistance in opening a corporate bank account in local bank (Bank Of America, Wells Fargo, JP Morgan) Collecting, processing and filing the necessary documents for opening a corporate account with a local bank
Local director for 1 year Provision of a USA resident director to open account with a local bank
Free Consultation We offer a free consultation where you can discuss your needs and questions regarding company registration and management. Our experts will be happy to help you understand the process and provide guidance based on your situation. We are happy to answer your questions and help you make an informed decision about the services you need
Assistance to connect your account to work with Amazon
Total cost	1200 USD	1700 USD	3300 USD	4600 USD	5600 USD
Provision of a legal address for 1 (one) year	900 USD	900 USD	900 USD	900 USD	900 USD
Remote company registration with transfer of authority	500 USD	500 USD	500 USD	500 USD	500 USD
Accounting services	200 USD	200 USD	200 USD	200 USD	200 USD

Why register a business in California

In California, buying a company or starting a new one is potentially lucrative because the state is characterized by the following:

openness to foreign investment;

access to a large market;

simplified conditions for company registration, including a remote format;

California is a hub for startups;

Silicon Valley is one of the world's centers of the IT industry.

Organizational and legal forms

You can create a company in California or establish your legal presence alternatively by choosing one of several of the most common legal forms:

A limited liability company (LLC) is the most flexible and commonly used form of business in California, which allows 100% foreign ownership and also assumes the limited liability of participants. They will not, under any circumstances, be liable for the investments in the enterprise. You need at least one member of residency and one director (also with no residency requirements) to establish this company. Simplified accounting and reporting rules apply.

A corporation is a more complex legal form of organization and management designed to raise large amounts of capital. As with an LLC, the shareholders of this company will not be liable for potential losses of the company above the value of their shares. A corporation can be of several types: (1) S-corporation - can have up to 100 individual shareholders who can only be residents. Taxation within this corporation is at the shareholder level only. (2) S-corporation - this legal entity can have over 100 shareholders, including legal entities, and is intended for larger projects. This type of corporation has one nuance - double taxation. Taxes are paid by the corporation and the individual shareholders when distributing the company's profits among them.

A limited liability partnership is another form of business in which the liability of the participants is limited solely to the amount of their investment. A partnership requires a minimum of 2 participants, at least 1 of whom must be fully responsible for the collaboration's results and manage it.

Registering other business forms in California, such as sole proprietorship, a branch, or a representative office, is also possible. Contact the lawyers at Prinancial for a detailed consultation on the legal form of business you are interested in.

How to register a business in California

You can open a business in California after going through the following steps:

Selection of the most appropriate legal form and the formation of a list of company activities.

Formulation and reservation of a unique commercial name for the company.

Requesting data and documents necessary for the company's registration, including its shareholders and directors.

Registration of an official address for the company.

Drawing up the relevant constituent documents and filling out the application forms.

Submission of the required documents, including a bank statement on payment of the registration fee, to the Registrar at the State Secretariat for review. Creation of an entry of the new legal entity in the Registry of Companies, followed by issuing a certificate of incorporation.

Registration for payment of mandatory tax and social costs. Obtaining an EIN for the employer.

Opening of corporate bank accounts.

Obtaining additional licenses and permits that may be required for certain regulated activities.

Legislation and regulatory environment

California is open to foreign investment and creates all the conditions for it. In particular, this manifests in simplifying registration procedures, including the possibility of completing them online, providing benefits, and a streamlined process for foreign entrepreneurs to obtain a residence permit. In most sectors, a permit or license will be required.

The main aspects of taxation in California

Companies incorporated in California pay income tax at a rate of 8.84%. Individuals pay tax on their income at 1-13.3% (depending on the payment amount and the taxpayer). California also levies a sales tax (analogous to VAT) at a rate of 7.25%. These rates apply at the state level, but you should also consider the rates of municipalities and federal taxes. For example, if you receive a positive difference between the federal, state, and municipal tax amounts, that difference must also be paid to the state.

Dividends are taxed at the appropriate income tax rate. However, taxation of interest, royalties, and capital gains are nuanced. Aotopay lawyers are ready to help you understand all the specifics of doing business and taxes that apply in California and the United States.

How Aotopay lawyers can assist

Suppose you want to open or buy a company in California. In that case, Aotopay lawyers are ready to apply their years of experience to this task and provide further business support in California and abroad. They have more than 11,000 completed projects in their portfolio. Provide input for launching a new successful project.