Starting an S Corp in California
To create an S-Corp in California, you must follow guidelines. After deciding on the idea, the next step is naming your corporation. Form 2553 should be filed to Elect California S Corp Tax Designation, reducing self-employment tax.
- Begin by creating a limited liability company or forming a corporation.
- Elect S corp status from the IRS during the application for an employer identification number.
Cost of Having an S Corp in California
Filing Articles of Incorporation with the California Secretary of State costs $100. Additionally, there is an annual $800 tax to the California Franchise Tax Board. Submit Form 2553 to the IRS to elect S corp status.
About the $800 California S Corp Fee
The first-year annual tax payment is due by the 15th day of the 4th month from the filing date. Business entities such as LLCs, LLPs, and LPs are also subject to an $800 annual tax.
Tax Requirements for LLCs in California
- File an annual report for your LLC.
- Pass-through tax entities for income taxes.
- Employer taxes if your LLC has employees.
- Compliance with sales and use taxes, as well as registration in other states.