US state · California
US Incorporation in California
Incorporating in California — pros, cons and the $800/year franchise tax reality. For foreign founders, California's high cost rarely justifies it unless you're physically operating there.
California at a glance
Key facts.
All the numbers that matter when choosing a state.
| Criterion | California |
|---|---|
| State corporate tax | 8.84% |
| Annual franchise tax (min) | $800 — applies to almost every entity, even non-operating |
| LLC fee | Additional $800 + revenue-based fee up to $11,790 |
| Foreign-founder friendly | Yes (no residency requirement) but expensive |
| Privacy | Lower — director list public |
| VC preference | Some Silicon Valley VCs prefer California; most accept Delaware |
| Best for | Companies with actual California operations or California-specific customer base |
How to incorporate
The process.
What it takes to form an entity in California.
- Choose entity (C-Corp / LLC)
- Reserve name with California Secretary of State
- Appoint registered agent in California
- File articles of incorporation/formation
- Get EIN from IRS (Form SS-4)
- Open US bank account
- Comply with California-specific requirements
- Ongoing annual reports + franchise tax
Adjacent