Business

Forming a C Corporation in California has never been easier. The first thing you need to do is file the articles of incorporation with the Secretary of State. The articles along with a small filing fee payment are all the Secretary of State needs to process your forms.

Rules of Forming a C Corporation
Your corporation can begin doing business as soon as all of the pertinent paperwork has been filed and processed. An added bonus to new corporations is that there is a one year suspension of the minimum franchise tax for all corporations formed after January 1, 2000. This is an instant savings of eight hundred dollars, better known as the minimum franchise tax.

Another important requirement of forming a C Corporation is the management. The management and control of a California corporation is vested in the board of directors. The board of directors are elected by the shareholders of the corporation.

All shareholders should be aware of the tax treatment and the types of regular corporations before they incorporate in California. Forming a C Corporation also requires an annual meeting of the shareholders and the directors. This is a great way for the entity to measure its progress yearly along with its competitors.