After successfully registered in California, the Corporation or LLC are required to operate in compliance with the General Corporation Law/Limited Liability Company Act of the State of California. The following describes the California company’s basic maintenance requirements.
All Corporation and LLCs must have and maintain a registered agent, which has a physical street address in California. You must file statement of information with the California Secretary of State every year or every two year. The statement of information is an update to your company’s information registered with the state. Failure to file the required Statement of Information may result in penalties being assessed by the Franchise Tax Board and suspension or forfeiture. You are required to file and pay franchise tax to California Franchise Tax Board. The due date is the 15th day of the 3rd month (LLC) or 4th month (Corporation) after the close of your tax year If you have state or local business license, you must renew the local business license/permit periodically. The license expiration date is printed on the license.
According to Federal and State tax rules, all active business registered in California must file tax returns on time, including business income tax, sales tax, payroll tax and other relevant taxes returns.
All business entities doing business in California must file a federal and state income tax return on or before the following April 15th (Corporation) or March 15th (LLC) of the tax year if calendar year is applied on tax purpose. The California annual tax for Corporation is the greater of 8.84% of the corporation’s net income or USD 800 minimum franchise tax If you plans to sell certain tangible personal property and provide taxable services within California, you have to pay the California sales/use tax; if you have employees within California, you have to report gross wages to the California Employment Development Department, withhold taxes from employees’ pay-checks, and contribute to Unemployment Insurance Tax(UI) and Employment Training Tax (ETT).
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Based on the Texas Company Law, members of a limited liability company (LLC) can convert it into a corporation if necessary. According to California and Texas laws and regulations, a Texas Corporation can be converted to a California Corporation if necessary.
In California, retail sales of tangible items are generally subject to sales tax. But some items are exempt from sales and use tax, including sales of certain unprocessed food or sales of items paid for with food stamps, etc.With all the above in mind, how do you deal with sales tax if you operate a food or food processing business in California?
A California Doing Business As (DBA) name is referred to as a fictitious, trade or assumed name that a company applies for in California when the name doesn’t contain a company owner’s last name. This article will briefly describe where to apply for a California DBA name, why a company wants to apply for a DBA name in California;
You must obtain a seller's permit if you: Are engaged in business in California and Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. The requirement to obtain a seller's permit applies to individuals as well as corporations, partnerships, and limited liability companies. Both wholesalers and retailers must apply for a permit.
