If you’re doing business in California, you are subject to the laws of the state — thus, forming a corporate entity out of state, such as Nevada or Delaware, does not change the requirement that you register your corporation in California, and pay California’s annual Franchise tax of $800.
You really need to consult with a business attorney to determine if you even “need” to incorporate. Many business owners that think they should, shouldn’t, and others that don’t think they should incorporate, should do so. There are many factors to consider, and cost, including California $800 annual minimum franchise tax, is one of them.
One important question is liability exposure. Where are you most at risk? Is it your interactions with customers, or your employees interactions with third parties? Answers to that question and others can guide you down the right path.
Employers with questions regarding incorporating can contact the Browning Law Group at 949-234-6266 or [email protected]. For more information, visit Browning Law Group’s website www.BrowningLawGroup.com.
- Posted by admin
- On February 9, 2016
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