Company Registration in California
The idea of opening a company in the USA crosses the minds of thousands of people worldwide. The established legal system, stable economic situation, and comprehensive support for entrepreneurs provide a good foundation for business. Quite often, non-residents' attention falls on California - one of the most attractive states in terms of business activity. Many global giants have located their headquarters here: Hewlett-Packard, Intel, Google, Oracle, Gap, Facebook, Walt Disney, and others.
Registering a company directly in Silicon Valley gives high chances of securing investor support and quickly scaling the business to full capacity. The high density of major cities, magnificent nature, and mild California climate are additional arguments in favor of setting up here.
If you have decided to start a business in the USA in California, you cannot do without registering a legal entity. This process is not too complicated, but it has several specific features.
Do You Need a Visa to Open a Company?
As a non-resident, you can open a company even without an American visa. To do this, you should use the services of official registration agents.
Advantages of an Offshore Company in California
In the canonical understanding of offshore jurisdictions, there are none in the USA, and this term does not appear in either federal or local legislation. But in essence, such jurisdictions exist - business oases with maximally favorable tax legislation and business climate. The so-called offshore company in California is an enterprise founded by a non-resident, conducting its activities outside the state and enjoying various benefits. This applies less to taxes and more to the attractive business environment. California offshore offers a fast but relatively expensive start, the status of a reliable and serious company, and an attractive development perspective. However, Russian businessmen should consider recent changes: since July 2023, the Russian Ministry of Finance has expanded the list of offshore zones from 40 to 91, including the entire territory of the USA.
Business Organization in California
Company registration in California has several advantages. Among them:
- Possibility of managing the enterprise by just one person.
Generally, the law requires at least three positions - company president, financial director, and secretary. All of them can be non-residents. It is allowed to combine all three positions, when all their functions are assigned to one person. - The state secretary does not require disclosure of specific information about company shareholders.
Statement of information includes data on CEO, secretary, CFO, and directors. This information should be provided to the state administration after the registration process (within 90 days). - All documentation is handled electronically.
This means that any reports for government agencies do not need to be submitted in printed form with a seal. It is enough to send by email or upload to the portal of the relevant institution. - The fact of entering company information into the legal entities register
allows immediate economic activity without any restrictions or bureaucratic barriers.
How to Register a Company in California
Opening a business does not require personal presence. This provides an excellent opportunity to physically be in Russia, Ukraine, Belarus, or other countries while conducting business activities on the western coast of the American continent.
To remotely open a company in California, it is enough to choose the organizational form of the future enterprise (for example, LLC or corporation) and decide on its name. And all other procedures can be entrusted to a registration agent. They will receive all legal documents on behalf of the company. Then they will transfer ownership rights to you through a special protocol.
If for some reason you don't want your name to appear in public state records, use the service of a nominee director.
The standard process of registering a company, so that it can fully conduct business activities, involves performing the following operations:
- Choosing a company name and checking this name for uniqueness of use.
- Registering the legal address of the enterprise, and if necessary - a virtual office in one of the business centers.
- Preparing a package of documents and submitting it for consideration by the State Secretary. All documents are prepared by the registration agent.
- Registering the company with the IRS and obtaining a special taxpayer identification number EIN. This allows hiring employees, paying taxes, opening a bank account.
- In-person or remote opening of a bank account.
- Development of internal corporate legal documents.
Tax Aspects of Business Operations
When it comes to the obligation to pay taxes in California, it should be noted their multi-level hierarchy: payments to the treasury of a specific city, state fees, and federal taxes. The latter are the same for all enterprises and depend on the net profit received.
The state's tax system is considered one of the most complex. At the same time, the administration closely monitors the timeliness of financial reporting and the completeness of local payments.
The list and amount of taxes paid depend on the organizational form of the enterprise and the amount of income (revenue). The franchise tax in California is $800 per year. This means that even if you do not conduct any business activities, this amount must be transferred to the state budget. A corporate income tax is levied (in 2023 its rate is 8.84%). Sales tax is 7.25%.
Owners of real estate located in California also pay property tax. Its annual amount averages about 1.25% of the property value, and payments are split into two parts - every six months.
Don't forget that the city where the company is registered may establish additional fees. Therefore, for a clear understanding of which taxes should be paid, it's better to consult with tax specialists or CPAs (certified public accountants).
How Long Will the Process Take?
The standard time required for direct company registration with the State Secretary is from three weeks.
If you need very urgent registration, there are two possible options:
- Accelerated registration with special urgency rates;
- Purchase of an already existing company (with 3-5-10-year history).
Why Choose Us?
Experts at US Business Services will quickly and accurately process your company registration in California, supporting you at every stage.
All services are provided remotely, without the need for personal presence, saving your time and giving you freedom of action.
We'll help with opening a bank account, annual reporting, and asset protection for the reliability and growth of your business.
