Form a S-Corp in California
Everything you need to know about forming a S-Corp in California. Filing fees, requirements, timeline, and step-by-step guidance.
How to File
Choose a Corporate Name
Select an available name that complies with California naming requirements and includes 'Corporation', 'Corp.', 'Incorporated', or 'Inc.'
30 minutes
Appoint Directors and Officers
Identify initial directors and officers who will manage the corporation's affairs and operations.
15 minutes
File Articles of Incorporation
Submit Form SI-200 to the California Secretary of State with the required information and $100 filing fee.
45 minutes
Create Corporate Bylaws
Draft bylaws that establish the corporation's internal operating procedures and governance structure.
2-3 hours
What's Next After Filing
Once your S-Corp is officially formed, you'll want to complete these important steps:
- •Hold Organizational Meeting — Conduct first board meeting to adopt bylaws, issue stock, and handle other organizational matters.
- •File Form 2553 with IRS — Submit IRS Form 2553 within 75 days of incorporation to elect S-Corporation tax status.
- •Obtain Required Licenses — Apply for necessary business licenses, permits, and tax registrations required for your specific business activities.
Advantages
- ✓Pass-through taxation eliminates double taxation on corporate profits
- ✓Limited liability protection for shareholders from business debts and obligations
- ✓Enhanced credibility and professional image with customers and vendors
- ✓Ability to deduct business losses against other income on personal tax returns
Considerations
- •Strict IRS eligibility requirements including 100 shareholder limit and single class of stock
- •High California minimum franchise tax of $800 annually regardless of income
- •Complex payroll tax requirements for shareholder-employees receiving reasonable salaries
Annual Obligations
What OpenChamber Does
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