Business formation, governance, and transactions.

It depends on who will own the company, how you want it taxed, and whether you plan to bring in investors. Both generally owe California's $800 minimum tax each year. An LLC also owes a separate fee once its total California income reaches $250,000 (Rev. & Tax. Code § 17942), while a corporation pays franchise tax on its net income. We walk through the trade-offs with you and your accountant before filing.

Yes. Most corporations and LLCs organized or doing business in California owe at least $800 a year (Rev. & Tax. Code §§ 23153, 17941). A new corporation is exempt from that minimum in its first taxable year; an LLC is not, although LLCs whose first taxable year begins in 2027 through 2029 will pay a reduced $400 that year. Both must also file a Statement of Information with the Secretary of State, corporations every year and LLCs every two years (Corp. Code §§ 1502, 17702.09), or risk a $250 penalty.

California does not require a written operating agreement, but without one the default rules of the state's LLC Act decide how your company is run (Corp. Code § 17701.10). Those defaults may not fit your deal: in a member-managed LLC, for example, any act outside the ordinary course of business needs the consent of every member (Corp. Code § 17704.07(b)(4)). A written agreement decides what happens when owners disagree, leave, or die, and it is far easier to write before any of that happens.