California is one of the most business-friendly states in the U.S to incorporate a business. To set up a business in the state of California, there are several requirements that you need to go through. These requirements are important to ensure that your company runs smoothly legally and efficiently. In this guide, we have covered all the steps that you need to go through to start a business in California using Wholesale Shelf Corporations.
What is a Shelf Corporation?
If you are foreign to the concept of Shelf Corporation, then do not worry we are here to make it easy for you. Shelf Companies or aged companies are already established corporations that are put on the shelf to age. The age factor gives these companies history of longevity and makes you appear more professional and experienced. These shelf companies are dormant and not used at all.
Choose a shelf company
Since it is clear what a shelf company is and what role does it play in helping your business, it is time for you to choose a shelf company. It is suggested that you choose a company that is at least 2 years old since lenders and suppliers usually invest in a company of this age. Check its date of incorporation and decide what suits your company the best. Also, make sure that the company is clean and has no credit history or liabilities whatsoever.
Negotiate with the supplier and sign the transfer agreement
A lot of sellers offer additional services along with the shelf company. You can look for a free registered agent service for the first month or a free change in the name when you buy a shelf company. Make sure that you know about the market rates to avoid getting scammed. Once you are assured, you can proceed to sign the transfer agreement. Signing the “Contract of Sale” will transfer the shares of the shelf company to you. The new shareholders (you) will now become the owners of the shelf company.
Choose a business structure and name it.
If you have already decided on a business idea, then it is time to choose your business structure and come up with an interesting name for it. You can decide between a Limited Liability Company (LLC), a sole proprietorship, and C Corporation. An LLC is the best and the safest option among the other 2, although it also depends on the type of company you are starting and how you want your company to be taxed, or how much risk you are willing to take with your business in case someone sues your company. You need to do thorough research before deciding on something since there are serious legal and financial implications tied to this decision. The next step is to name your shelf company. You can either choose to stick with the name your shelf company came with or change the name. If you are changing the name, make sure that the name is unique and has not been used already. Check with the California Secretary of State (SOS) on their website for available business names. Once you decide on a name, reserve it for 60 days by filing a Name Registration request form. Register your business as a domain name if you are considering conducting your business on the internet.
Change existing address and register yourself as the director.
Your shelf company already has an existing registered office address when you purchase it. Make sure that you change it to your company’s office address to avoid getting charged for using someone else’s address. Moreover, if you wish to open a business bank account in your business’s then you also need to register yourself as the director of your company.
Apply for California business licenses and permits.
To conduct business in the state of California, you need to apply for the following permits and licenses.
- Tax Registration: If you plan on selling goods in California, then you need to obtain a permit by registering with the Board of Equalization (BOA). You can also do it online on the BOA website. You also need to register for employer withholding taxes with the California Employment Development Department (EDD) if you plan on hiring employees. This can also be done online on EDD’s website.
- General Business license: Every company conducting business in California is required to obtain a general business license.
- EIN: Obtain a federal Employer Identification Number from the IRS if your business is individually taxed from you or the other employees. You may not be required to get an EIN but it is always suggested that you do so for many reasons. Banks and other companies will always demand EIN before investing in your business.
- Occupied and professional licenses: This depends on the industry to industry. Visit the state’s CalGold website for more information.
- Regulatory licenses and permits: This includes specific industries such as building and construction, health and safety, the environment, and other industries. It is usually issued by the state agency. Check with the state’s CalGold website to know if you are required to obtain.
Register to file for taxes
You need to check with California’s state business tax to understand how California taxes types of businesses. Also, check for the employer and federal taxes.
Who are the Wholesale Shelf Corporations?
Wholesale Shelf Corporations is a well-known company popular for supplying the most affordable shelf companies. They also offer various other services such as registered agent service, business plan templates, and others. With Wholesale Shelf Corporations as a guide, you can rest assured that your business gets off the ground and runs smoothly.
The bottom line is, California is booming when it comes to business, and there are new opportunities every day for budding entrepreneurs. To make sure that your incorporation process goes smoothly and hassle-free, invest in a Shelf Corporation. A shelf company will save you time and effort and, also make your company look more credible in front of investors and other companies. Do not wait! Go get your Shelf Corporation from Wholesale Shelf Corporations today!
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