Small Business Setup & Corporate Tax
Entity formation (LLC, S-Corporation, C-Corp), operating agreements, EIN registration, and IRS Form 2553 election. Proactive tax planning to reduce self-employment tax burden legitimately.
Choosing the Optimal California Business Structure
Every business model has distinct liability and tax implications under California Franchise Tax Board statutes.
California LLC
Ideal for real estate holding and simple consulting. Provides liability shield separating personal assets from business obligations. Pass-through taxation by default.
- • Subject to CA $800 minimum franchise tax
- • Single-member or multi-member operating agreements
- • 15.3% Self-Employment tax applies to all net profits
S-Corporation Election (Form 2553)
For operating businesses generating over $75,000 net profit. Divides income between W-2 Reasonable Compensation (subject to FICA) and shareholder distributions (free of self-employment tax).
- • Saves 15.3% FICA tax on distribution portion
- • California 1.5% S-Corp state corporate tax applies
- • Requires annual corporate tax return (Form 1120-S)
C-Corporation
Best for enterprises seeking venture investment, foreign shareholders, or planning for Section 1202 Qualified Small Business Stock (QSBS) capital gains exclusion.
- • Federal 21% flat corporate income tax
- • Can issue multiple stock classes
- • Potential double taxation on dividend distributions
Preparing to Register a California Business?
Generate our comprehensive S-Corp setup & corporate governance checklist, including Secretary of State Articles, EIN, and City of Arcadia business tax licenses.
Begin with a Disciplined Consultation
Receive clear procedural clarity and transparent cost estimates for your immigration petition or small business tax structure.