If you think you need to set up a corporation or LLC for your business, now is a good time.
1. The California Secretary of State now takes about 2 months to process new corporate and LLC filings. I know, this is ridiculous. It’s a routine task to set up a Delaware or Oregon corporation or LLC online. But here in California, home to Silicon Valley, there is no option to file online, and you have to pay an additional $350 expedited filing fee to avoid a two month wait.
So if you want your corporation or LLC in place by the beginning of the new year, you should start now.
2. California corporations must pay the greater of the $800 minimum franchise tax or a tax on net income. California waives the $800 franchise tax in the corporation’s first year. Why not make your “freebie” year a full year. If the Articles of Incorporation are filed in the last 15 days of the year, the corporation’s first year will begin January 1.