01
What to confirm before filing
Confirm entity type, owners, management, name, business activity, registered agent, and any in-state address requirements. An LLC and a corporation have different governance, tax elections, and recurring filings; first-year price alone is not a sound basis for choosing.
Secretary of State compliance and Franchise Tax Board obligations are separate tracks, including when closing the business.
02
Ongoing state compliance
The statement of information is generally $20 biennially; most LLCs also face the Franchise Tax Board's $800 annual minimum tax and possibly an income-based LLC fee. Confirm on the state website before filing. The initial statement is generally due within 90 days, then biennially by the end of the anniversary month; tax deadlines are separate.
03
E-commerce and sales tax
Cross-border sellers should test economic nexus using sales, transactions, inventory, and marketplace collection records. Marketplace inventory stored in California may also create physical nexus.
04
Federal tax and foreign ownership
State formation does not replace federal tax filing. A U.S. entity with foreign ownership may involve an EIN, Form 1120, Form 5472, Form 1065, withholding, or information returns. The applicable filing depends on tax classification, ownership, transactions, and operating facts.
05
How ABS can help
ABS can organize state formation records, coordinate registered-agent service, build annual-report and state-tax calendars, and support e-commerce bookkeeping, income tax, sales tax, payroll tax, and IRS or state notice intake. Scope and pricing are confirmed in writing after the facts are reviewed.