The easiest way to go about setting up your S corp in California is to have a tax professional do it for you. Click the link to see how David York’s Tax Service can get your business filed and functional in three easy steps.

What do you need to know about forming a California corporation?

California corporations need not establish a par value for their stock –a set amount below which the stock cannot be sold. The board sets the value and number of the initial shares. A share of stock in your corporation is classified as a security under state and federal securities laws that regulate the offer and sale of corporate stock.

How to ask a question about an S corporation?

Therefore, if you have a question about forming, operating or ending an S corporation, the answer probably appears below. However, if you truly do search through the questions and answers below and find that you can’t find an answer to your general question, you can send your question to us using our contact form.

Where can I find the California Corporations Code?

General provisions governing most business entities are found in the California Corporations Code.

What do you need to set up a corporation?

Your Articles of Incorporation is the first document you need to file when forming your corporation. This document is filed with the state and is what initially establishes your corporation. It included information such as: The name of the designated incorporator––the person who is actually executing the incorporation.

Who are the Board of directors of a California corporation?

The requirement for appointing members to your company’s Board of directors for a California Corporation are as follows: Your board of directors must be made up of three individuals unless it has less than 3 shareholders, in which case the number of board members must be equal to or greater than its number of shareholders.

What are the benefits of an S Corp in California?

There are essentially three key benefits to starting an S corp in California: An S corp is a pass-through tax entity that eliminates the potential for double taxation by “passing through” profits and losses from the business level to personal taxes. In a C corp, income from dividends is taxed at both the corporate and shareholder level.