S-Corp Formation Services in California

The path to business formation is often packed with various roadblocks. But not anymore.
With our S-Corp formation services in California, starting your business is as easy as filling out a short form.

Start Your Free S-Corp Now

PS: It’s Free

Inc Authority is a full-service business formation service suitable for all sizes of businesses.

Business name check doesn’t have to be a hassle with Inc Authority, irrespective of your state.

S-Election Form 2553 is prepared by Inc Authority and even filed with the (Internal Revenue Service) IRS to start your business.

What Features Does an S-Corp in California Have to Offer?

While S-Corps are Corporations, they offer numerous benefits over C-Corporations that make them attractive to entrepreneurs who’re just starting out.
For starters, stringent requirements that apply to C-Corporations usually don’t apply to S-Corps in California.
Here’s why S-Corporations in California stand out:

  • Corporate taxes apply to C-Corporations, but S-Corps are exempted from them. In California, S-Corps only have to pay $800 or 1.5% tax on the total income. The individual shareholders pay taxes on their profits.
  • S-Corp owners can apply their losses to offset against other income in their personal tax returns.
  • Only S-Corps that have inventory are required to use the accrual basis of accounting.
  • It’s possible to reduce FICA and self-employment taxes by balancing salary and dividends.

The advantages that apply to an S-Corp make it a great option for business owners who want to start a Corporation but don’t want the hassles of a C-Corporation.

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Register Your Business Name

You need to zero in on a name for your business. This name would have to be unique so, you’ll have to search through company records to determine if the name you’ve chosen isn’t already taken.

Once you’ve found a unique name for your business, you’ll have to apply for and register your company in this name so that no one else can take that business name up. You’ll also likely have to get a domain with this name

File Your Documents

To formally launch your California S-Corp, you must file the relevant documents with the state. First, you need to prepare your Articles of Organization and submit them to the Secretary of State.

You must also prepare and submit your California Statement of Information within 90 days of formation. Finally, create an Operating Agreement for your newly formed LLC so that you can go for S-Corp election.

 Apply for Your EIN

Every LLC in California requires an Employer Identification Number (EIN), which is the tax ID of your business. This number works much like the social security number and identifies your business with the IRS.

The EIN enables you to do some basic business functions without which you can’t sustain. These include the likes of hiring employees, receiving payments, making them, or opening business bank accounts.

Do S-Corp Election

Once your LLC or C-Corp is operational, you have to elect to be taxed as an S-Corp instead. You can do so by filing the Form 2553 Election by Small Business Corporation with the IRS to get S-Corp status.

This should be done within 75 days of the business formation or beginning of a new tax year in which the election should take place. Alternatively, you can do it at any time in a tax year preceding the year in which it’ll take effect.

Why Choose A Formation Service for California S-Corporation

You can file for your S-Corp all by yourself by following the steps mentioned earlier. But is it really worth all that effort? Not at all. Without experience, you’ll likely end up with more questions, which will lead to long delays. But with a business formation service, you can reap several unmatched benefits that you wouldn’t be able to get with otherwise.

Always Free

Unlike other services that usually charge a few hundred dollars to apply for S-Corp formation in California, Inc Authority doesn’t charge a dime. With its free formation package, you only have to pay the state formation fees and nothing more than that.

Easy Process

The S-Corp formation process in California can be challenging to navigate if you don’t know how to apply for it and the intricacies it involves. This can lead to a lot of delays and running around. With Inc Authority, you only have to fill out a short form to apply for it.

Peace of Mind

When you’re launching a business, there’s likely going to be a lot on your plate. Adding the struggle of applying for business formation to the ever-growing pile of work will only add to your stress. When you work with Inc Authority, you’ll have peace of mind.

Start Your S-Corp

Free Forever Plan

We’ve said it before, but few companies can boast a completely free-of-cost business formation offering for entrepreneurs looking to apply for and start their S-Corps in California. Companies are usually short on funds when they’re starting off. 

In this situation, every dime saved can be invested into setting up the business well. Inc Authority’s free formation services go a long way in enabling this. The only expense business owners have to bear is the state filing fee.

Additional Services

A free business formation package should come with pretty basic features, right? Well, that’s usually what happens when you apply for a free package with another business filing service out there. But with Inc Authority, it’s different. 

Along with the free formation, Inc Authority also serves as your Registered Agent for the first year of operation. You also get a free business checking account, professional tax consultation, and also access to a business funding expert.

Quick Processing

Typically, you’d expect the free packages offered by a business formation company to be very basic in nature. This also means that the processing time for the formation of the S-Corporation in California would be fairly long. 

However, when it comes to Inc Authority, they offer speedy turnaround times for S-Corp formation when you apply for them. With the Fast Track package, you get express processing as well. If you like, you can opt for it as an add-on in the Starter Bundle.

Continuous Compliance

One of the other things that set Inc Authority apart from the rest is the fact that it offers numerous services that enable businesses to maintain their compliance throughout the year. This ensures that they remain in good standing with the state.

Inc Authority regularly sends out annual compliance notifications to the S-Corps that they’ve registered in California. These notifications inform entrepreneurs of the various compliance requirements that apply to them.


Unlike other business formation services that typically rely on the traditional method of sharing documents, Inc Authority chooses digitization. All the documents that Inc Authority receives are shared with you digitally once you apply with them. 

This ensures that the documents are securely stored online. They’re also easily accessible from multiple devices, even on the go. Finally, there’s no delay in receiving the documents as they’re all uploaded online. This ensures that time-sensitive documents reach you on time.

Power-packed Bundles

Apart from the free business formation package, Inc Authority offers business bundles for those who want to start their S-Corps in California. These bundles come packed with numerous helpful features for new businesses.

The idea of having to pay a single fee to get access to a bunch of services is splendid, especially for a new business that would require services like stock certificates, corporate forms, and EIN/Tax ID, among other things. 

Digital-Ready Business

The other major advantage that Inc Authority has over the rest is the fact that it provides businesses with the right set of tools to find their footing in the industry. They provide them access to digital services that would otherwise require additional expenditure.

When you opt for any of the premium bundles Inc Authority offers, you get a free domain from them to start your business website. Additionally, you also get five email addresses that you can use to get started with your business operations.

Add-On Services

Inc Authority excels at all the services it provides with its business formation packages. But the best part about this service is that it has got a lot more to offer for all the S-Corp that have just started in California or are about to start.

You can choose to go for additional services offered by Inc Authority, such as federal trademark registration, business credit access, business funding pre-qualification, business plan creation, and website development and marketing services.

Now you know how Inc Authority differs from other business formation services that offer S-Corp formation services in California. So, go ahead and apply for the free S-Corp formation offered by them to start your new business.

Free Plan

As mentioned in the key features section earlier, the free plan offered by Inc Authority gives you access to the following features when you choose to apply for your S-Corp in California through them:

  • Business Name Check
  • Registered Agent
  • Digital Storage and Delivery
  • Tax Planning Consultation
  • Preparation & Filing
  • S-Election Form
  • Inc Care Support
  • Business Funding Analysis
  • Free Business Checking Account

Price: Free

Get the Free Package

Starter Business Bundle

This is the first premium service bundle you can opt for to start your California S-Corp with Inc Authority. It includes all the features that are offered in the free package, along with a few other helpful features.

Complete Corporate Bylaws

Inc Authority will work with you to create customized corporate bylaws for your new S-Corp in California.

Initial Meeting Minutes & Resolutions

S-Corps in California may be required to show their meeting minutes and resolutions if the state demands them. Inc Authority will handle all the initial meeting minutes and resolutions for you to get your business off the ground.

EIN/Tax ID Number

Every business that wishes to hire employees, make payments, or receive them is required to have a unique EIN/Tax ID. It’s the business equivalent of a social security number. Inc Authority will get your EIN from the IRS for you.

Annual Compliance Notifications

California S-Corps have numerous ongoing compliance requirements, such as filing annual reports, and keeping track of these can get challenging. Inc Authority sends you notifications before such deadlines to help your business remain compliant.

Web Domain and Email Addresses

To get your business ready to start, Inc Authority provides a web domain registration and 5 email addresses. This ensures that no one can get a website with your business name.

Price: Custom

Get the Starter Bundle

Fast Track Business Bundle

The Fast Track Bundle consists of all the features offered by the Starter Bundle, along with a few more helpful ones. These include:

INC Success Advisor Package

Inc Authority will help you with everything from accounting, tax, and IRS notifications to payroll and business licenses.

Private Banking Specialist

To help the new S-Corp navigate through the myriad of options available when it comes to business banking, Inc Authority provides a private banking specialist.

Personalized Business Advice

To help new businesses grow quickly and thrive in a competitive market, Inc Authority’s experts will provide personalized business advice.

Expedited Filing

Inc Authority will prepare your documents and send them to the California Secretary of State within 24 hours to ensure a quick business launch.


Price: Custom

The services included in the Fast Track Business bundle are available as add-ons in the Starter Bundle as well. 

Frequently Asked Questions

An S-Corp in California is a Corporation that has chosen to get taxed as a pass-through business entity to avoid double taxation. The shareholders report their income when they pay income tax in their personal returns.

S-Corps and California LLC (Limited Liability Company) both have their own advantages. While LLCs are more flexible, S-Corps can help businesses save federal income tax and last for eternity. So, you can choose one based on your requirements.

To run your S-Corp in California, you have to pay a minimum franchise tax of 1.5% on the Corp’s net income or $800, whichever is higher. However, new business entities are exempt from paying this tax for the first year.

Yes, the state of California does recognize S-Corps. All LLCs in the state can apply with the IRS to start getting the S-Corp tax status. You don’t need to apply separately for it either. California honors the federal S-Corp election. 

Starting an S-Corp can be challenging if you do it all by yourself, as you won’t know how to go about it. But when you apply to start your S-Corp with a service like Inc Authority, you only have to pay the state fees. The filing service is absolutely free.