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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111603
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I own a Sub-S corporation incorporated in the State of Texas,

Resolved Question:

I own a Sub-S corporation incorporated in the State of Texas, but am doing business in the State of California. The reason I incorporated in the State of Texas was because of perceived less expensive initial and annual corporate fees.

However, I now find that, in order to enjoy the protection of the corporation organization, I must pay a fee in California, a fee for a "foreign" registered corporation doing business in California. It seems that this fee will be the same as if I were a corporation, so apparently I have gained nothing, in spite of the many sites online that recommend filing in this state or that one because of fee advantages.

My three questions are (1) is it true that the annual fees for a foreign registered corporation in California are the same as for a corporation incorporated in California?--and, (2) if this is indeed the case, I would rather simply incorporate in California; what are the forms I need to file with the State?--and (3) how do I transfer the company from the Texas corporation to the newly formed California corporation, bearing in mind that I already have contracted leased office space, bank accounts, insurances, etc., in the name of the Texas corporation.

Not sure if it is needed, but by way of background, I incorporated in Texas in 2010, leased the office space in California effective Jan. 1 of 2011, started operations about March 1. I have had about $100K in revenue through September 1 of 2011, and about $5K in profit. The company is a service organization without inventory, so no sales tax is paid; Federal and State payroll taxes are current, at about $10K and $2K, respectively. If the company continues to make a profit, whether incorporated in TX or CA, as a Sub-S corp, I will be responsible for paying its income taxes.
Submitted: 5 years ago.
Category: Business Law
Customer: replied 5 years ago.
Relist: I still need help.
Expert:  Law Educator, Esq. replied 5 years ago.
Here are the filing fees for foreign Corporations in CA: CA Corporations Fees, the filing fees are very similar to those for formation of a corporation in CA. The total cost however for registering a CA corporation is about $150 and it is more to form a CA corporation.


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