Why Incorporate in California?

Millions of companies regularly conduct business in California. If you have a business nexus in California, then you are part of its tax system.

Are You Part of the California Tax System?

Here’s a quick way to determine whether or not you are, or will be, a part of the California tax system. Answer the following questions:

  • Do you live in California?
  • Do you have any employees (including yourself) who work in California?
  • Do you own real estate in California?
  • Do you have a business location in California?

If you answered “yes” to any of those questions, then you are, or will be, part of the California tax system.

California Incorporation May Be Necessary

Corporation law can be complex. If you are living in and doing business in California and want California-based limited liability protection (which is weaker) without extra out-of-state fees, forming a California entity may be your choice.

However, you should at least consider forming in Nevada and Wyoming, which have superior asset protection laws, and then qualifying in California. While there is an extra cost involved, it is another form of insurance; the benefit of more protective state laws may be used to your future advantage.


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