How Do You Start A California S Corporation?
Several benefits exist for filing an S corporation for a small business. S corporations enjoy flow through taxation, which means the shareholders file taxes on their personal income (usually called singe taxation). An S corporation also limits shareholder liability by placing what is called a “corporate shield” between the shareholders and the corporation. However, in California, S corporations pay an additional California state tax. To start an S corporation in California, you must incorporate with the California Secretary of State. An S corporation simply means that you elect to be taxed under subchapter S of the Internal Revenue Code. Choose a business name and check availability for that name. California law prohibits new corporations from using similar or deceptively similar names of existing corporations. You can check for the existence of a similar business name by doing an Internet search or checking with the U.S. Patent and Trademark Office. Appoint directors and other corpora
