The default type of organization formed in California is the C corporation. The process of forming a C corporation is very simple and involves only a few small statements in the documents of Articles of Incorporation. There is a filing fee of $100 that needs to be included too.
- Choosing one of the three share-issuing types of corporations
- Proposed company name and corporation address
- Number of shares authorized
- Opening a corporation bank account
- Applying for Federal Tax ID (EIN) with IRS
Steps Involved in the Formation of a C Corporation
- A C corporation is formed by filing Articles of Incorporation with California Secretary of State.
- In addition to filing the Articles of Incorporation, it is necessary to conduct the first meeting which includes the first shareholder and director meeting to form bylaws for the corporation. These laws will govern how and who runs the organization.
- A federation tax ID also called EIN is to be applied for with the IRS and within 90 days of forming the corporation, it is necessary to file an annual statement of Information or SOI which is a document/form describing details about the directors and officers of the corporation.