HOW TO FORM A CALIFORNIA FOREIGN CORPORATION ONLINE
What is a California Foreign Corporation?
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your Corporation is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a Corporation that is registered in Delaware wants to do business in California.
The Delaware Corporation is a "Domestic" Corporation in Delaware and will be a "Foreign" Corporation in California.
The Delaware Foreign Corporation needs to register with the California Secretary of State as a California Foreign Corporation.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign Corporation to be a Corporation that is registered outside
of the United States.
What is a California Foreign Qualification?
explain
You want to do business in the state of California but are registered as a "Domestic Corporation" in another state.
In order to legally conduct business in the state of California you must register with the California Secretary of State as
a
Foreign Corporation.
The process of registering as a Foreign Corporation in California is called
California Corporation Foreign Qualification.
The process of California Corporation Foreign Qualification is similar to the process of forming a Domestic Corporation in California.
Your original Domestic Corporation formation documents (usually called Articles of Incorporation) and By Laws apply to your California Foreign Corporation.
The Officers and Directors of your Domestic Corporation have the same roles in the California Foreign Corporation.
Specific requirements to qualify as a Foreign Corporation in California are explained below.
Once you have made the decision to Qualify as a Foreign Corporation in California,
a California lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs: into your new California Foreign Corporation.
Do I need a lawyer to Form a Foreign Corporation in California?
explain
The short answer is no.
The state of California does not legally require a lawyer to form a
California Foreign Corporation.
Our detailed
Foreign Corporation Information page may help you understand some
of the implications of forming a
California Foreign Corporation.
However, if there is
anything about forming a Foreign Corporation in California
that you're not sure about you should seek the advice of a competent California lawyer, a California accountant,
or both
before you form a Foreign Corporation in California.
Once you have made the decision to form a Foreign Corporation in California, a California lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new California Foreign Corporation.
Do I have to Reserve a Company Name before I Form a Foreign Corporation in CA?
explain
You are not legally required to reserve a Company Name for a new California Foreign Corporation before you submit your application to Form a Foreign Corporation
in California.
The Foreign Corporation name that you have registered in your home state may or may not be available in California.
In that case you need a different name your California Foreign Corporation.
Whether or not you need to reserve a company name for your new California Foreign Corporation depends entirely on your business situation.
The California Secretary of State uses names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that California Foreign Corporation Name.
What if the California Foreign Corporation Name I want is already taken?
explain
If the Name you have chosen for your new California Foreign Corporation is already in use by a currently active
California Foreign Corporation or LLC then you will have to register a DBA Name with the county recorder in each California county in which you want to do business. "DBA" is an abbreviation for "Doing Business As."
In California a DBA Name is called a Fictitious Name.
We verify that the Name you have chose for your new California Foreign Corporation is available before we submit
your Foreign Corporation filing to the California Secretary of State.
If necessary we can register a Fictitious Name in California for you so that you can open your new California business as quickly as possible.
What do I have to do to Form a Foreign Corporation in California?
explain
- Prove that you are registered in a state other than California as a Domestic Corporation
In order to register as a Foreign Corporation in the state of California, you must first prove that you are registered in another state as a
Domestic Corporation.
You prove this with a Certificate of Good Standing, sometimes referred to as a Certificate of Existence or a Certificate of Fact, from the
state in which you are registered as a Domestic Corporation.
Cost of a Good Standing Certificate for your Domestic Corporation varies from state to state.
If you already have a Good Standing Certificate from your home state, note that it must be dated no older than 6 months from the date of your application for
California Corporation Foreign Qualification.
If the date on your Good Standing Certificate is older than 6 months then you need to get an updated certificate.
If you get your own Good Standing Certificate you must scan and email or send a copy to us before we submit your application for a
California Foreign Corporation.
We can get your Good Standing Certificate from any state - in most states within 2-3 hours.
- Choose a name for your California Foreign Corporation
You can use the same name in California that you use in your home state, however, if the name of your Domestic Corporation is not available you need to choose another name.
Your California Foreign Corporation name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the California Foreign Corporation name that you choose must be distinguishable from the name of any other registered California Corporation or other
business entity and the name must also be different from any reserved names on record with the state of California.
Your California Foreign Corporation name must not imply that it was formed for a purpose other than that stated in the
Your California Foreign Corporation name must not be a name that is likely to mislead the public.
The name of a California Foreign Corporation must include the word "Foreign Corporation" or
"Incorporated" or an abbreviation of one of these words.
It's important to choose a good name for your California Foreign Corporation because if you want to change it after you qualify you
will have to file amended documents with the California Secretary of State (and pay a fee).
We will check to make sure that your requested California Foreign Corporation name is available and conforms to all state of California
Foreign Corporation naming regulations.
- Select an official address and a Registered Agent for your California Foreign Corporation
Every California Foreign Corporation must have an address that is physically located in the state of California.
This address is "registered" with the California Secretary of State.
The Registered Address cannot be a PO Box and is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of California to receive all correspondence on behalf of the California
Foreign Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many California Foreign Corporations hire a Registered Agent because they don't have a physical
address within the state of California or to provide a distinct level of privacy.
We provide Registered Agent services in California as well as all other states and the District of Columbia.
- File Registration Documents with the California Secretary of State
In order to Qualify as a Foreign Corporation in California you must file Registration Documents with the California Secretary of State.
In California the registration documents are named "Statement and Designation by Foreign Corporation".
The registration documents must include certain specific information about your California business.
If the Registration Documents do not conform exactly to state of California requirements they will be rejected. 
If you need to change any of the information on your registration documents after your California Foreign Corporation has been approved,
you may amend the registration documents for your California Foreign Corporation but you will have to pay a fee to
the state of California in order to make the changes official.
- Determine how you want your California Foreign Corporation to be taxed
The California Corporate Income Tax Rate is %.
You may choose that your California Foreign Corporation to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Foreign Corporations.
You may choose to have your California Foreign Corporation taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any California Corporate Income Tax.
The state of California imposes two taxes on Corporations which do business in California - a Franchise tax and an Income Tax.
Both C Corporations and S Corporations are subject to a minimum California Corporate Franchise tax of $800.
The minimum California Corporate Franchise tax is due the first quarter of each accounting period and must be paid whether the California corporation is active, inactive, operates at a loss, or files a return for a short period of less than 12 months.
The minimum California Corporate Franchise Tax is waived on newly formed or qualified corporations filing an initial return for their first taxable year.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your California Foreign Corporation and include it with
your final Foreign Corporation documents package.
What do I have to do after I Form a Foreign Corporation in California?
explain
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your California Foreign Corporation
- Keep proper records of your California Foreign Corporation on file
- Pay your taxes to the state of California
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a California Foreign Corporation does not take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
A California Foreign Corporation merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your California Foreign Corporation within California you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your California Foreign Corporation vary depending on your business activities
and the specific locations within the state of California in which you want to conduct business.
If your California Foreign Corporation will be selling products in California you may be required to obtain a Reseller's Permit from the appropriate
California state agency.
If your California Foreign Corporation will be selling products in California you will also be responsible for all applicable local and state of California
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your California Foreign Corporation
We can file your Initial report as well as your Statement of Information each year
An Initial Statement of Information must be filed with the California Secretary of State within 90 days of your incorporation date.
In addition, an Annual Statement of Information must be filed with the California Secretary of State every year.
This report includes information on directors and officers, the corporation's general business activity, and additional details for corporations which are traded publicly.Â
The California Corporation Statement of Information includes basic information about your California Foreign Corporation including information on your Officers and Directors.
Failure to submit a properly completed California to the California Secretary of State on or before the
due date may subject the California Foreign Corporation to being administratively dissolved in the state of California or having its authority to
transact business in the state of California revoked by the California Secretary of State.
Penalties may accrue if you fail to file any California Foreign Corporation to the California Secretary of State by the due date.
- Keep proper records of your California Foreign Corporation on file
Keep the following records on file and available at the principal business office of your California Foreign Corporation:
- Names and addresses of all Directors and Officers of the California Foreign Corporation
- Foreign Corporation formation documents and any Amendments to them
- Corporate Bylaws and any Amendments to them
- List of current shareholders of the Foreign California Foreign Corporation.
If shareholders change, keep a record of old shareholders and how stock was transferred.
- Minutes of all Meetings of Shareholders and Directors
- Copies of any Corporate Resolutions which have been adopted by the California Foreign Corporation
- Copies of all tax returns and Annual Reports for the California Foreign Corporation for the last 3 years
- Pay your taxes to the state of California
Foreign Corporations that either do business in the state of California or that derive income from sources within the state of California are subject
to California and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides California, you must allocate the amount of income derived
from the state of California in order to determine your California state taxes.
What information do I need in order to Form a Foreign Corporation in California?
explain
In order to Incorporate in California you'll need the following information about your new Company:
- The name of your new California Foreign Corporation along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign Corporation office in California (not a PO Box)
- A good standing certificate for your Domestic Corporation from your home state no older that 6 months
- A description of the nature of the business you are planning to operate with the California Foreign Corporation
- Names and addresses of the initial Directors of the California Foreign Corporation
Remember -
ALL the information that you provide when you Form a Foreign Corporation in California becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign Corporation in California.
How long does it take to Form a Foreign Corporation in California?
explain
Processing times for new California Foreign Corporation applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new California Foreign Corporation applications takes the state around 5-10 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new California Foreign Corporation.
PLEASE NOTE: WE CANNOT GUARANTEE CALIFORNIA SECRETARY OF STATE PROCESSING TIMES.
The California Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the California Secretary of State.
In our experience 5-10 business days is the time it
usually takes the California Secretary of State to process
a new California Foreign Corporation application.
We get your California Foreign Corporation application to the CA Secretary of State ASAP.
Once it is at the state we have no control over the new California Foreign Corporation application process.
How much does it cost to Form a Foreign Corporation in California?
explain
The state of California charges $145.00 to Form a Foreign Corporation in CA. Also add the cost of a Good Standing Certificate from your home state.
If you choose us to help you Form your Foreign Corporation in California our processing fees are $145.00.
This includes:
- Same day processing of your new California Foreign Corporation order
- CA Name Check and Reservation
- Prepare Statement and Designation by Foreign Corporation
- File Formation Documents with the California Secretary of State
- Certified Copies of Formation Documents
- California Foreign Corporation Checklist
- Priority Mail Delivery
- Unlimited Customer Support
CALIFORNIA FOREIGN CORPORATION COST ESTIMATOR
Our California
Foreign Corporation Services include:
(These services are included in our processing fees)
Optional California
Foreign Corporation Services
(Choose options, cost is updated automatically)
-
Expedited Service
explain
Normal processing time for a new California Foreign Corporation is 5-10 business days.
California processing times for new California Corporation filings can vary depending on the staff work load at the Secretary of State's office. The California Secretary of State offers these expedited options for new California Incorporation filings:
- $350 - The California Secretary of State will guarantee a 24 hour turn around
- $750 - The CA Secretary of State will guarantee a response by 4 PM the same day that the application to Form a new Corporation in California was submitted
This is the time by which the California Secretary of State will either approve or deny the Foreign Corporation application.
California Foreign Corporation applications must be received by the Secretary of State before noon California time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut document delivery times in half.
-
- Express Mail - $35
explain
If you really need your original approved Statement and Designation by Foreign Corporation in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the California Secretary of State's processing time. For the quickest turn-around time also choose the Expedited Service option.
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S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any California Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign Corporation documents pakage.
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Initial Statement of Information - $45
explain
The California Secretary of State requires all new Foreign Corporations to file an initial Statement of Information. The Statement of Information includes business location and ownership information.
We will prepare and file your initial Statement of Information with the California Secretary of State
and include filing confirmation with your final Foreign Corporation documents package.
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CA Registered Agent - $135
explain
Every California Foreign Corporation is required to have an address within the state of California where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of California to receive all correspondence
on behalf of the Foreign Corporation is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign Corporations hire a Registered Agent because they don't have a physical address within
California or to provide a distinct level of privacy.
We can act as your California Foreign Corporation Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your CA Registered Agent services.
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CA Good Standing Certificate - $33
explain
A California Good Standing Certficate is proof of the existence of your new California Foreign Corporation.
The Certificate is issued by the California Secretary of State and is proof that your CA Foreign Corporation is not behind on any
of its California Secretary of State Corporate obligations.
A California Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of California or in any other state.
We can get your California Good Standing Certificate immediately after the California Secretary of State has approved your Foreign Corporation filing.
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Federal EIN - $65
explain
An FEIN is like a Social Security Number for your California Foreign Corporation.
We can get your FEIN on the same day that your Statement and Designation by Foreign Corporation are approved by the California Secretary of State.
You can get your FEIN before your articles are approved by the California Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign Corporation name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
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Foreign Corporation Kit and Seal - $99
explain
While you're not required to have a Foreign Corporation Kit and Seal for your new California Foreign Corporation they do come in handy.
The CA Foreign Corporation Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign Corporation Seal.
The Foreign Corporation Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your California Foreign Corporation record keeping.
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Business License Research - $175
explain
Most new California Foreign Corporations are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.
GOOD STANDING CERTIFICATE
You will need a Good Standing Certificate from your home state that is no older than 6 months.
Choose your home state from the list, the price of the certificate below will be updated automatically.