Form Your S Corporation in California
Incorporate in the Golden State and elect S-corp status to unlock pass-through taxation and payroll-tax savings in the world's 5th largest economy
Filed in California
The Golden State · CA
- State filing fee$100
- Processing timeApprox. 24-48 hours online (5-8 business days during peak)
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$25 Statement of Information + $800 min. franchise tax — due SI within 90 days, then annually; tax due yearly
- State tax rate8.84% corporate tax rate
- Expedited option24 hours (+$350)
Form your California S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your California S-Corp
Free formation means you pay only the $100 state filing fee. All core services are included at no extra charge.
Articles of Incorporation (Form ARTS-GS), then IRS Form 2553 for the S-corp election filing
We prepare and submit your Articles of Incorporation (Form ARTS-GS), then IRS Form 2553 for the S-corp election to the California Secretary of State.
Registered agent
Required in California — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in California
California pairs the world's 5th largest economy and deep pools of talent and venture capital with a higher tax burden than most states, making the S corporation's pass-through treatment and payroll-tax savings especially valuable for profitable owner-operated businesses. Be aware that California does not fully honor the federal pass-through: S corporations still owe the greater of an entity-level 1.5% state tax or the $800 minimum franchise tax each year.
Pass-through taxation avoids the C-corporation's entity-level double tax — profits flow straight to shareholders' personal returns
Self-employment / payroll tax savings: only your reasonable W-2 salary is subject to FICA, not the remaining distributions
Access to the world's 5th largest economy and California's nearly 40 million consumers
Liability protection of a corporation combined with the favorable tax treatment of a pass-through
Unmatched access to venture capital, top talent, and the Silicon Valley, Hollywood, and biotech ecosystems
Credibility of a formal corporation, which can help with banking, contracts, and hiring
One IRS election (Form 2553) converts an ordinary California corporation into an S corporation
Most US domestic S corporations are exempt from federal BOI reporting under FinCEN's March 2025 rule
Key features of a California S-Corp
- S corporation is an IRS tax election (Form 2553), not a separate California filing
- $100 Articles of Incorporation filing fee with the California Secretary of State
- $800 minimum annual franchise tax applies regardless of income
- Reasonable-salary rule: owner-employees must take a W-2 wage before distributions
- Eligibility capped at 100 US-citizen/resident shareholders and one class of stock
- Pass-through taxation, but California's 8.84% corporate tax floor still touches S corps
Major industries in California
Form your California S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes Approx. 24-48 hours online (5-8 business days during peak).
- 01
Choose and Verify Your Corporation Name
Pick a distinguishable name and confirm availability through the California Secretary of State's business search. The S corporation is a tax status — you are naming an ordinary California corporation.
- 02
Appoint an Agent for Service of Process
California requires every corporation to designate an agent for service of process with a physical California address to receive legal documents on the company's behalf.
- 03
File Articles of Incorporation
Submit Form ARTS-GS (Articles of Incorporation) to the California Secretary of State with the $100 filing fee. Online filing through bizfile is the fastest method, typically clearing in 24-48 hours.
- 04
Get an EIN and Issue Stock
Apply for a free EIN from the IRS, adopt bylaws, hold an organizational meeting, and issue one class of stock. S corporations may have no more than 100 shareholders, all US citizens or residents.
- 05
Elect S Corporation Status (Form 2553)
File IRS Form 2553 to elect S-corp tax treatment — generally within 75 days of incorporating or by March 15 to apply for the current tax year. All shareholders must sign the election.
- 06
File Statement of Information and Meet Ongoing Obligations
File Form SI-550 (Statement of Information, $25) within 90 days, set a reasonable W-2 salary, run payroll, and pay California's $800 minimum annual franchise tax.
California S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
California S-Corp requirements checklist
Everything you need to form and maintain a California S-Corp in 2026.
- File Articles of Incorporation (Form ARTS-GS) with the California Secretary of State and pay the $100 fee
- Designate an agent for service of process in California
- File IRS Form 2553 to elect S-corp status, generally within 75 days of formation or by March 15
- Meet eligibility: no more than 100 shareholders, all US citizens or residents, and only one class of stock
- Pay a reasonable W-2 salary to owner-employees and run formal payroll
- File Form SI-550 (Statement of Information, $25) within 90 days, then annually
- Pay California's $800 minimum annual franchise tax and obtain any required licenses
Filing information
- Formation document
- Articles of Incorporation (Form ARTS-GS), then IRS Form 2553 for the S-corp election
- Filing agency
- California Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $10 (60 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $100 California state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation (Form ARTS-GS), then IRS Form 2553 for the S-corp election filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in California)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
California S-Corp questions, answered
Common questions about forming an S-Corp in California. Can't find an answer? Talk to our team.
How do I form an S corporation in California?
You first form an ordinary corporation by filing Articles of Incorporation (Form ARTS-GS) with the California Secretary of State for a $100 fee, then file IRS Form 2553 to elect S-corp tax status. The S corporation is a federal tax election, not a separate state entity type.
How much does it cost to start an S corporation in California?
The state charges $100 to file the Articles of Incorporation with the California Secretary of State, and the IRS does not charge for the Form 2553 S-corp election. Ongoing, you must pay an $800 minimum annual franchise tax and a $25 Statement of Information fee.
How long does California take to process the incorporation?
Standard online filing through the California Secretary of State takes approximately 24-48 hours, extending to 5-8 business days during peak periods. The separate IRS S-corp election (Form 2553) is processed by the IRS after your corporation is formed.
When is the deadline to file Form 2553?
To have S-corp status apply to the current tax year, file Form 2553 within 75 days of incorporating, or by March 15 of the year you want the election to take effect. Missing the window generally pushes the election to the following tax year, though late-election relief may be available.
Who is eligible to own a California S corporation?
An S corporation may have no more than 100 shareholders, all of whom must be US citizens or residents, and it can issue only one class of stock. Foreign (non-resident) owners are not eligible, so corporations with foreign shareholders must remain a C corporation.
What is the reasonable-salary requirement?
Owner-employees of an S corporation must pay themselves a reasonable W-2 salary for the work they perform before taking profit distributions. The salary is subject to payroll taxes, while remaining distributions are not — which is the core self-employment-tax savings of the S-corp structure.
Does California still tax an S corporation?
Yes. Even though income passes through to shareholders, California imposes a 1.5% state-level tax on S-corporation net income, subject to the $800 minimum annual franchise tax. The state's general corporate rate is 8.84% and sales tax is 7.25%.
Does my California S corporation have to file a BOI report?
Under FinCEN's March 2025 interim final rule, US domestic entities and US persons are exempt from Beneficial Ownership Information reporting. Only foreign-formed entities registered to do business in a US state must still file, so a California-formed S corporation generally does not.
California government filing resources
Filing fees for common S-Corp services
Official California state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
$10.00 to reserve a corporation, LLC, or LP name for 60 calendar days (per Corp Code sec.
$5.00 flat fee, identical for all entity types (does NOT vary by entity type).
Learn more$5.00 per document for a certified copy when ordered online (corp/LLC/LP) - this is the certification fee.
$20.00 per apostille (per document).
$100.00 for a foreign STOCK corporation (covers both C-corp and S-corp - California does not distinguish at registration).
Learn moreThere is NO charge for a seller's permit (confirmed on CDTFA FAQ).
Learn more$25 total for Form SI-550 ($20 filing fee + $5 disclosure fee).
Learn moreNo fixed reinstatement fee and the FTB revivor application itself carries no filing fee.
Learn moreEverything you need to run your California S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your California S-Corp?
Formation is free — you pay only the $100 California state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in Approx. 24-48 hours online (5-8 business days during peak).
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