How to Incorporate in California
To incorporate in California, file Articles of Incorporation (Form ARTS-GS for a general stock corporation) with the Secretary of State for a $100 fee, name an agent for service of process, and then file a Statement of Information within 90 days and annually after that for $25. California corporations also owe an $800 minimum franchise tax to the Franchise Tax Board starting in their second taxable year, and a corporate tax rate of 8.84% on net income above that minimum.
By LLC Register · Last reviewed October 2, 2026
Comprehensive Guide
Choose a Name
Unlike most states, California doesn't require a general stock corporation's name to include a designator word like "Corporation" or "Inc.," per California Corporations Code Section 202; that requirement only applies if you elect statutory close corporation status. Whatever name you choose still has to be distinguishable from other entities on file with the Secretary of State. Search the state's bizfileOnline business search before you file, and see our guide on how to check corporate name availability for the full process, including a separate trademark check.
Appoint an Agent for Service of Process
California calls its registered agent an "agent for service of process." It can be an individual California resident with a California street address, or a registered corporate agent that has already filed with the Secretary of State. The corporation itself cannot serve as its own agent.
File Articles of Incorporation
File Articles of Incorporation, Form ARTS-GS for a general stock corporation, with the California Secretary of State. The filing fee is $100 for articles providing for shares, per the Secretary of State's current fee schedule, with optional expedited service available for an additional fee if you need faster processing. The articles include your corporation's name, its business purpose, its agent for service of process, and the number of shares it's authorized to issue.
File Your Initial Statement of Information
Within 90 days of filing your Articles of Incorporation, file a Statement of Information (Form SI-200) with the Secretary of State, listing your corporation's officers, directors, agent for service of process, and principal business address. The fee is $25 ($20 filing fee plus a $5 disclosure fee), per the Secretary of State. Unlike a California LLC, which files this every two years, a California corporation has to file it every year.
Understand the $800 Minimum Franchise Tax
Every corporation incorporated or doing business in California owes an annual minimum franchise tax of $800 to the Franchise Tax Board, or 8.84% of net income, whichever is greater, according to the California Franchise Tax Board. A corporation incorporated on or after January 1, 2000 is exempt from the $800 minimum in its first taxable year, paying only the income-based tax (which can be $0 if there's no net income), but owes the full minimum starting in its second year regardless of profitability. A separate 15-day rule also exempts a corporation from filing or paying for a short first tax year of 15 days or fewer during which it conducted no business, depending on the incorporation date.
Get an EIN and Register for State Taxes
Once incorporated, apply for a federal EIN from the IRS, then register with the Franchise Tax Board for your corporation's income tax account and, if you'll sell taxable goods, with the California Department of Tax and Fee Administration for a seller's permit. Check whether your city or county requires a separate local business license as well.
Hold Your Organizational Meeting
As with any new corporation, hold an organizational meeting to adopt bylaws, appoint officers, and authorize issuing stock to your founders. See our general guide on how to form a C corporation for this part of the process, which doesn't differ meaningfully by state.
Compare to Forming an LLC in California
If you're still deciding between a corporation and an LLC, our guide on how to form an LLC in California covers the LLC-specific filing fee, Statement of Information schedule, and the same $800 minimum franchise tax, which applies to LLCs too. The structures share some California-specific costs but differ in governance requirements and how they're taxed; see our broader corporation vs. LLC comparison for that decision.
Practical Considerations
Budget for the $800 Minimum Franchise Tax From Year Two On
Because the $800 minimum franchise tax applies regardless of whether your corporation turns a profit, budget for it starting in your second taxable year even if you expect to operate at a loss initially.
Don't Miss the 90-Day Initial Statement of Information
The initial Statement of Information has its own 90-day deadline, separate from your annual filing afterward. Missing it can trigger a penalty from the Franchise Tax Board even before your first annual filing comes due.
Decide Whether a Designator Still Makes Sense for Your Brand
Even though California doesn't require "Inc." or "Corporation" in your name, many businesses include one anyway to clearly signal their corporate status to customers, lenders, and partners. This is a branding choice, not a legal requirement, in California.
This Is Not Legal or Tax Advice
California's corporate filing fees, the Statement of Information schedule, and the franchise tax exemption rules can change, and the summary here reflects the rules as of this article's last review date. Confirm current fees and deadlines with the California Secretary of State and Franchise Tax Board, and talk to a tax professional about your corporation's specific first-year tax treatment.
Sources
The official sources used for this article.
California Secretary of State: Business Entities Fee Schedule | bpd.cdn.sos.ca.gov/pdf/be-fee-schedule-062018.pdf |
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California Legislative Information: Corporations Code Section 202 | leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=202. |
California Franchise Tax Board: C corporations | taxes.ca.gov/c-corporations |
California Secretary of State: bizfileOnline business search | bizfileonline.sos.ca.gov/search/business |
Created by: LLC RegisterLast reviewed October 2, 2026
Updated: October 2, 2026
Frequently Asked Questions
How much does it cost to incorporate in California?
The Articles of Incorporation filing fee is $100, plus a $25 initial Statement of Information due within 90 days. Separately, most corporations owe an $800 minimum annual franchise tax to the Franchise Tax Board starting in their second taxable year.
Does California require a corporate name designator?
No, not for a general stock corporation. Per California Corporations Code Section 202, a general stock corporation's name doesn't have to include "Corporation," "Inc.," or a similar word, unlike most other states.
How often does a California corporation file a Statement of Information?
Annually, for a $25 fee, starting with an initial filing within 90 days of incorporating. This is different from a California LLC, which files its Statement of Information every two years.
Do new California corporations owe the $800 minimum franchise tax in year one?
Generally no. A corporation incorporated on or after January 1, 2000 is exempt from the $800 minimum franchise tax in its first taxable year, per the California Franchise Tax Board, but owes it starting in year two regardless of profitability.
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