How to Incorporate in California and Stay on the Budget?

live.prokhorenko.us

15 pointswhite4 comments

This is really useful information for me; I'm probably just going to go and do the paperwork by-hand, mostly because I'd like the experience of doing so.

Also, I'm fairly certain that S-Corps can waive their first year minimum tax (the $800), although they have to pay in their second year of operation.

Anybody else done the corporate dance in California?

Yes, you don't have to pay first year franchise tax, but this doesn't make a big difference, unless you're planning to have a company for one year only. Some friends of mine took more then two year to get on revenue (not profit), but $800 is really something you're liable for whatever happens.

This is the first detailed account I've read of how one would incorporate in the US (though I'm aware it's state-specific). Suddenly the red tape and costs associated with incorporating in the UK seem less terrifying in comparison.

California is also one of the worse states to incorporate in. I've set up an LLC in Utah (where my sister lives), and it took a few hours to go from 'zip' to 'Utah LLC'. Everything was do-able online, and I even got all my federal tax information (EIN).

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