CALIFORNIA SHELF CORPORATIONS
INSTANT CREDIBILITY WITH AN AGED SHELF CORPORATION FILED IN CALIFORNIA. COMPETE WITH ESTABLISHED COMPETITORS.
CALIFORNIA SHELF CORPORATIONS AND SHELF LLC'S
DO NOT acquire an aged California shelf corporation to build corporate credit or to start a business. California aged companies are poisonous! Why? Sellers of aged California shelf companies don't pay the California Franchise Tax Board fees. That leaves you holding the bag with back fees, penalties and interest.
Obtain better results with an out-of-state aged shelf company and then foreign file the company into your State. We age our companies in Montana and New Mexico. Then simply file that company into California. Then file a Fictitious Name Registration in the county where you seek to do business.
Please consider the following reasons:
Please consider the following reasons:
The Solution: Obtain an out-of-state shelf corporation or shelf LLC, and file the company in California.
The California Franchise Tax Board poses certain challenges when buying a California shelf corporation
Obtain an out-of-state shelf corporation or shelf LLC, and file the company in California as a foreign corporation.
Out-of-state shelf corporations and shelf LLC’s don’t need to pay the California Franchise Tax Board until the company is filed in California. And even then, the fee isn’t paid until the first anniversary from when the out-of-state (foreign) company is filed in California.
You and your business are safer when certain that the California Franchise Tax Board fees are paid when owed, and back taxes are not owed.
The states of Montana, Wyoming and New Mexico don’t request the information on the owners of the company. The owners’ identities aren’t disclosed. This means that you are considered the FIRST owner of the company once you register the foreign shelf company to do business in California. This is important if you intend to build corporate credit or obtain private financing.
You will pay less, in terms of the sales price of the company, by acquiring an out-of-state shelf company and then filing it in California. This is because the annual maintenance fees are lower by obtaining a shelf corporation out of Wyoming, Montana or New Mexico, than a California company.
California shelf corporations and shelf LLC’s always costs more than what they are worth. You’re better off with an out-of-state shelf company that’s filed in California as a foreign entity.
SHOULD I OBTAIN A SHELF CORPORATION OR SHELF LLC?
CALIFORNIA BASICS ON CORPORATIONS AND LLC'S
A domestic corporation formed in California is a company that was filed in California.
This also means that a corporation filed in any other state, such as in Oregon, is considered a foreign corporation in California. But, an Oregon, an Oregon company is domestic to Oregon. A California company filed in Oregon is a foreign company in Oregon. Got it?
A foreign corporation that seeks to do business in California must file one of these forms:
The solution is to obtain a foreign company and file it in California. An aged shelf corporation or an aged shelf LLC will provide the following advantages:
There are 49 other states! From which state should I buy a shelf corporation or shelf LLC?
The states to consider are:
These three states don’t ask for the owners of the companies.
How to Register a Foreign Corporation or LLC in California
To check names in California:
All California registration Forms are located here:
Some specific forms and filing fees are listed here for your convenience:
To facilitate the processing of documents sent to Sacramento, please attached a self addressed envelope and a letter referencing the corporate name as well as your name, return address, and phone should also be submitted.
Know that, since you are choosing to take advantage of all the rights and amenities of the state in which you are operating as a foreign corporation, you will be obligated to contribute to the health and wealth of that state. This may mean filing taxes and paying other fees within that state.
All California tax forms : http://www.ftb.ca.gov/forms/index.shtml
A Corporation is taxed on its net income at a rate of 8.84 percent, with a minimum tax of $800. The minimum franchise tax ($800) is due the first quarter of each accounting period and must be paid whether the corporation is active, inactive, operates at a loss, or files a return for a short period of less than 12 months. The minimum tax is waived on newly formed or qualified corporations filing an initial return for their first taxable year.
The LLC will be taxed at the corporate tax rate of 8.84 percent and will be subject to a minimum tax of $800.
All LLCs classified as partnerships or disregarded entities that organize in California, register in California, or conduct business in California, must file California Form 568 Limited Liability Company Return of Income. California Form 568 must be filed by the 15th day of the fourth month after the close of the LLC’s taxable year.
An LLC required to file Form 568 pays an annual tax of $800, and may be subject to a fee based on total annual gross worldwide income. The annual tax is due by the 15th day of the fourth month of the taxable year, and is paid using CA Form 3522.
In addition, an LLC filing Form 568 that has members that are not residents of California must file the agreements of those non-resident members acknowledging that California may tax them and may collect tax from them, agreeing to file a California return and pay tax on the members’ share of California source income of the LLC. For any non-residents that do not sign an agreement, the LLC must pay tax on the nonresidents’ share of LLC income.
INFORMATION ON THE CALIFORNIA SECRETARY OF STATE
Aged shelf corporations and LLC's offer no tax advantages. We're not attorneys. We're not tax advisors.
CALIFORNIA CALIFORNIA QUICK REFERENCE
CALIFORNIA MAIN STATE WEBSITE Corporations & LLC’s
News & Notices, Customer Alerts and Processing Times
Note: Statements of Information for common interest developments must be submitted on paper, by mail or in person (drop off), at this time.
The Business Entities Section of the Secretary of State’s office processes filings, maintains records and provides information to the public relating to business entities (corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships and other business filings).
BUILDING CORPORATE CREDIT CORPORATE CREDIT
Preparation for the building of corporate credit:
FILING YOUR SHELF CORPORATION OR SHELF LLC IN ANOTHER STATE?
NATIONWIDE SECRETARY OF STATES, UNDER CONSTRUCTION