You’ve validated your idea and are starting to see real traction. Now, it’s time to make it official. The inc filling process is more than just a legal formality; it’s a strategic move that unlocks new possibilities for your business. It adds a layer of professionalism that attracts investors, provides significant tax flexibility, and most importantly, protects your personal finances. But where do you begin? This article explains how to file for incorporation, covering the practical steps you need to take to secure your company’s future and build a credible, lasting brand from a solid legal foundation.
Key Takeaways
- Your business structure is your financial foundation: Choosing the right entity—like an LLC, S-Corp, or C-Corp—is the most important initial step. It directly affects your personal liability, how you’re taxed, and your ability to secure funding, so get this decision right before you file.
- Accuracy is everything during the filing process: Incorporation isn’t just one form; it’s a series of precise steps. You must follow your state’s specific rules for name availability, registered agents, and paperwork to avoid rejections and costly delays.
- Protect your new entity from day one: After your business is officially formed, immediately take steps to maintain its legal standing. This means getting an EIN, opening a separate business bank account to protect your personal assets, and staying on top of ongoing compliance requirements like annual reports.
Should You Incorporate Your Business?
Taking your business from a side hustle to a formal legal entity is a major milestone. It might feel like a lot of paperwork, but creating a corporation or LLC is one of the most powerful moves you can make to protect yourself and set your company up for long-term success. This legal separation between you and your business provides a foundation for growth, credibility, and financial security. Think of it as building a proper house for your business instead of just operating out of a tent. It gives you structure, protection, and a solid base to build upon.
The Top Perks of Incorporating
The single biggest reason to incorporate is for limited liability protection. By forming a separate legal entity, you create a shield between your business’s finances and your personal assets. If the business faces debt or a lawsuit, your personal savings, home, and car are protected. Incorporation also adds a layer of professionalism and credibility, which can make it easier to attract investors and secure capital. Plus, it offers significant tax flexibility. You can choose how your business is taxed—as an S corporation or a C corporation, for example—which can lead to strategic tax savings down the road. Finally, a corporation has a perpetual existence, meaning it can continue on even if ownership changes.
LLC vs. S Corp: Choosing Your Business Structure
Deciding on the right business structure is a critical first step with long-term consequences for your taxes, liability, and administrative workload. The most common options are a Limited Liability Company (LLC), an S Corporation, or a C Corporation. An LLC offers liability protection with less formal requirements, making it a popular choice for small businesses and consultants. Corporations are often better for founders who plan to seek venture capital by selling stock. The choice isn’t one-size-fits-all; it depends entirely on your business goals. Making the right decision from the start can save you from costly restructuring later, which is why getting expert guidance on entity formation and maintenance is so important.
Key Differences Between S Corps and C Corps
While both S Corps and C Corps offer liability protection, they have fundamental differences in how they handle ownership, stock, and taxation. These distinctions are not just minor details; they can significantly impact your company’s ability to grow and attract funding. Understanding these differences is essential before you decide which structure is the right fit for your long-term vision. It’s about matching the corporate structure to your business goals, whether you plan to stay small and closely held or aim for major expansion.
Shareholder and Ownership Rules
When it comes to ownership, S Corps and C Corps play by very different rules. An S Corp is more exclusive, limiting you to 100 shareholders who must be U.S. individuals or certain types of trusts. This structure is often a great fit for closely-held businesses that don’t plan on bringing in a wide array of investors. In contrast, a C Corp offers much more flexibility. It has no restrictions on the number or type of shareholders, meaning you can have unlimited owners, including other corporations or foreign investors. This open-door policy makes C Corps the go-to choice for startups aiming for venture capital funding and rapid growth, as they can attract investment from a much broader pool.
Types of Stock
The differences extend to how you can structure ownership through stock. A C Corp can issue multiple classes of stock, like common and preferred shares. This is a huge advantage when you’re trying to raise capital because you can offer investors different voting rights and dividend payouts without giving up control of your company. It’s a sophisticated way to structure deals and appeal to different investor appetites. An S Corp, however, is much simpler. It can only issue one class of stock, meaning all shareholders have the same rights. While this keeps things straightforward, it can limit your options for bringing on diverse investors down the line.
Understanding the Tax Implications of Incorporating
Choosing your business structure is about more than just liability; it fundamentally changes how your business is taxed. Each entity type—LLC, S-Corp, and C-Corp—comes with its own set of rules, forms, and strategic opportunities. Understanding these differences is essential for managing your cash flow and staying compliant. While the tax code can feel complex, getting a handle on the basics will help you make informed decisions and work more effectively with your accountant. Proper business tax planning from the start ensures you’re not leaving money on the table or setting yourself up for surprises later on.
Federal Tax Rules for C Corporations
If you decide a C Corporation is the right fit, especially if you plan to seek venture capital, you need to be aware of its unique federal tax rules. Unlike pass-through entities like S-Corps or LLCs, a C-Corp is taxed as a completely separate entity from its owners. This creates a clear line between business and personal finances, but it also introduces some specific concepts you’ll need to understand, such as how profits are taxed and what happens when the business has a down year. These rules are distinct and require careful management to optimize your financial strategy.
Double Taxation Explained
A big thing to know about C corporations is “double taxation.” This means the company’s profits are taxed once at the corporate level when the company earns them. Then, if the company distributes those profits to shareholders as dividends, the shareholders get taxed on that money again on their personal returns. This two-tiered tax structure is a major consideration when choosing a C-Corp. While it might sound like a drawback, strategic planning can help manage its impact, ensuring the benefits of the corporate structure still outweigh the costs for your specific business goals.
Handling Corporate Losses
The separation between a C-Corp and its owners works both ways. Just as your personal assets are protected from business debts, your personal tax return is separate from the business’s financial performance. According to the Internal Revenue Service, if the corporation loses money, the shareholders cannot use those losses to offset income on their personal taxes. The loss stays within the corporation, though it can often be carried forward to reduce the corporation’s taxable income in future years. This is a key difference from pass-through entities, where business losses can sometimes be deducted by the owners personally.
Required Federal Tax Forms for Corporations
Once your business is incorporated, you’ll have new annual filing responsibilities. You will need to file Form 1120, U.S. Corporation Income Tax Return, to report the corporation’s income, gains, losses, deductions, and credits, and to figure its income tax liability. This form is separate from your personal income tax return. Staying on top of deadlines and ensuring accurate reporting is crucial for compliance and avoiding penalties. This is where ongoing business accounting and management becomes invaluable, as it ensures your books are clean and ready for tax season without any last-minute scrambling.
Deducting Incorporation Costs
The good news is that many of the initial expenses you incur to get your corporation up and running are tax-deductible. These startup costs, such as state filing fees and legal fees for drafting corporate documents, can often be deducted from your business taxes. To take advantage of this, you must keep meticulous records of every expense related to the incorporation process. These deductions can help offset some of the initial investment, making the process a bit more affordable. Properly categorizing these expenses ensures you can claim them correctly when you file your first corporate tax return.
Your State’s Rules for Filing for Incorporation
Before you get too far into the process, it’s important to remember that incorporation rules aren’t universal. Each state has its own set of requirements, fees, and timelines. Since Clear Peak Accounting is based in California, we often help clients work through the specific regulations set by the California Secretary of State. But no matter where you are, the first step is to get familiar with your local rules. This will save you from headaches and costly mistakes down the road. Think of it as creating a local roadmap for your business’s legal journey.
How to Find Your State’s Filing Requirements
Every state has a checklist of what it needs to see in your incorporation paperwork. Most states require basic information like the name, signature, and address of the person filing, known as the incorporator. You’ll also need to provide your business name and details about your company’s stock structure. The best place to find this information is directly from the source: your state’s Secretary of State website. For businesses in California, you can find all the necessary forms and instructions on the California Secretary of State website. Taking the time to review these documents and requirements ensures your filing is accepted without delays.
What Paperwork Do You Need to File for Incorporation?
Once you know the requirements, it’s time to gather your documents. The core document is your Articles of Incorporation. Depending on your state, this might also be called a Certificate of Formation or Certificate of Organization. You’ll also need to prepare an Operating Agreement or corporate bylaws, which outline how your business will be run. While you won’t file these with the state, they are critical internal documents. Getting professional help with entity formation and maintenance can ensure you have all the essential documents in order, from reserving your company name to applying for your Employer Identification Number (EIN).
How Much Does It Cost and How Long Does It Take?
Incorporating your business isn’t free, and the costs can vary significantly by state. You’ll have to pay a filing fee for your Articles of Incorporation, which can range from $50 to several hundred dollars. In California, for example, the standard filing fee is $100. Some states also have extra costs, like fees for newspaper publications to announce your new business. Timelines also differ; some states approve filings in a few days, while others can take several weeks. Understanding these costs and timelines upfront helps you budget properly and set realistic expectations for when your business will be officially up and running.
Breaking Down State Filing Fees
When you file to incorporate, you’ll encounter a few mandatory costs, starting with the state filing fee. This one-time charge covers the administrative work of processing your Articles of Incorporation. The amount varies quite a bit depending on where you’re located, ranging from as low as $50 to several hundred dollars. For businesses setting up shop in California, the standard filing fee is $100. It’s also worth checking if your state has any other unique requirements, like needing to publish a notice of your new business in a local newspaper, which would be an additional cost. These initial fees are a necessary investment to establish your company’s legal foundation and are a key part of the entity formation process.
Understanding Franchise Taxes
After you’ve paid your initial filing fees, you’ll need to plan for ongoing costs, like the franchise tax. This is essentially a fee you pay to the state for the privilege of operating your business there. It’s important to note that this isn’t always based on your profit. In California, for example, there’s a minimum annual franchise tax. Beyond state fees, your corporate structure has major tax implications. If you form a C corporation, you’ll need to be aware of “double taxation.” This means the corporation’s profits are taxed once at the corporate level. Then, if those profits are distributed to shareholders as dividends, the shareholders pay income tax on that money again on their personal returns, as explained by the Internal Revenue Service. This is where proactive business tax planning becomes crucial.
How to Choose and Secure Your Business Name
Once you’ve decided on a business structure, it’s time for one of the more exciting steps: choosing a name. Your business name is more than just a creative label—it’s a legal identifier that must comply with state rules. Getting this part right from the start prevents legal headaches and rebranding costs down the road. It ensures your name is unique, available for use, and properly registered with the state.
Think of your name as the foundation of your brand. For a tech startup founder, it needs to sound credible to investors. For a content creator, it needs to be memorable and available across social media platforms. Before you get too attached to a name, you need to do some digging to make sure it’s legally yours for the taking. This process involves checking for availability, running a thorough search, and officially securing it with the state. Taking these steps carefully ensures you can build your brand on solid ground.
First, Check Your State’s Naming Rules
Every state has specific rules for naming a corporation. Generally, your chosen name must be unique and not easily confused with an existing registered business in your state. This is to prevent public confusion and protect consumers. Most states also require you to include a corporate designator, such as “Corporation,” “Incorporated,” “Company,” or an abbreviation like “Inc.” or “Co.” These words signal to the public that they are dealing with a corporate entity with limited liability. Before you move forward, check your state’s specific naming guidelines to ensure your top choices are compliant.
How to Run a Proper Business Name Search
A thorough name search goes beyond a quick Google query. First, you need to check your state’s official business entity database. For businesses in California, you can search the database on the Secretary of State’s website to see if another corporation is already using your desired name. Next, it’s wise to check for federal trademarks. A name might be available in your state but trademarked nationally by another company. You can perform a search on the U.S. Patent and Trademark Office’s database to avoid potential infringement issues. Finally, check for domain name and social media handle availability to ensure you can build a consistent online presence.
How to Officially Reserve Your Business Name
Once you’ve confirmed your name is available, you need to claim it. The most common way to do this is by officially filing your Articles of Incorporation, which formally registers your business and secures the name simultaneously. However, if you’re not quite ready to file all your paperwork, most states offer the option to reserve a name for a short period. In California, for example, you can reserve a name for 60 days by filing a Name Reservation Request form. This gives you time to finalize your documents without worrying about someone else taking your name. This is just one part of the process where professional guidance on entity formation can simplify things.
Preparing Your Filing Incorporation Papers
This is where your business starts to feel real. Preparing your incorporation documents is the formal step of creating your company’s legal foundation. It’s less about big ideas and more about getting the details right. Accuracy is key, as these documents will be filed with the state and define your business’s structure. While it might seem like a lot of paperwork, breaking it down into manageable pieces makes the process straightforward. Getting these documents in order from the start saves you from major headaches down the road.
What to Include in Your Articles of Incorporation
Think of your Articles of Incorporation as your company’s birth certificate. It’s the legal document that officially creates your corporation with the state. While requirements vary, you’ll typically need to include your business’s official name and address, the incorporator’s details, and the number of shares the corporation is authorized to issue. Getting these details right is non-negotiable. Our team at Clear Peak helps clients with entity formation and maintenance to ensure every document is filed correctly from day one.
Defining Your Business Purpose
When you file your Articles of Incorporation, you’ll need to state your business purpose. This can be either specific or general, depending on your state’s rules and your business type. For certain professional fields, like medicine or law, you may be required to list a very specific purpose, such as “to practice medicine.” For most other businesses, however, you can use a general statement like “to engage in any and all lawful business.” A general purpose provides the most flexibility, allowing your company to evolve or pivot without needing to amend its formation documents. It’s a small detail that gives you room to grow in the future.
Listing Officers and Directors
Your Articles of Incorporation will ask for the names and addresses of your initial officers and directors. While some states make this optional on the initial filing, it’s information you’ll need to have ready. Banks, lenders, and even insurance agencies will often require a list of your company’s leadership to be on file with the state before they will work with you. Including this information from the start can make other administrative steps, like opening a business bank account, much smoother. It establishes a clear record of who is running the company, which adds a layer of transparency and credibility to your new corporation.
Choosing an Effective Date
The effective date is the day your corporation officially comes into existence. By default, this is usually the date your Articles of Incorporation are approved by the state. However, most states give you some flexibility. You can often choose a date that is slightly in the past or up to 90 days in the future. Why would you do this? Choosing a future date, like the first day of a new quarter or year, can simplify your accounting and tax records. This strategic decision is a foundational part of good business tax planning, ensuring your financial reporting starts on a clean, logical date from day one.
Choosing a Registered Agent for Your Business
Every incorporated business needs a registered agent. This is a person or company designated to receive official legal and tax documents on your business’s behalf. Think of them as your company’s official point of contact for important mail from the state, like legal notices or annual report reminders. A crucial rule is that your registered agent must have a physical street address in your state of incorporation—a P.O. box won’t cut it. If you don’t have a physical office in California, you can use a commercial registered agent service to handle this for you.
Checking for Other Required State Forms
The Articles of Incorporation are the main event, but they aren’t the only piece of paperwork you’ll handle. Depending on your business structure and state, you may also need other forms. For example, you’ll need to create corporate bylaws or an operating agreement to outline how your business will be run. You’ll also need to get an Employer Identification Number (EIN) from the IRS, which is like a Social Security number for your business. This is essential for opening a bank account, hiring employees, and managing your business accounting.
Important Legal Considerations Before Filing
This is the final checkpoint before you make your business official. Before you submit anything, it’s crucial to understand the legal weight of this step. Filing for incorporation isn’t like signing up for a new app; it’s a formal process with lasting implications. Taking a moment to review the fine print and understand the finality of your submission can save you from irreversible errors. This is where you want to be meticulous, ensuring every detail is correct before you hit “submit.”
The Finality of Your Submission
When you file your Articles of Incorporation, there are no do-overs. Most states, including California, make it very clear that once the documents are submitted and the fee is paid, you can’t take them back, make changes, or get a refund. Think of it as engraving your company’s details in stone. A simple typo in your business name or an incorrect address can create significant hurdles later on. That’s why it’s so important to proofread every line with extreme care. This finality underscores the value of getting professional support with entity formation to ensure everything is accurate from the very beginning.
Understanding State Disclaimers
Incorporation rules are not one-size-fits-all; they change significantly from one state to the next. The requirements in California are different from those in Texas or New York. It’s your responsibility to know the specific rules for your state. State websites, like the one for the California Secretary of State, provide checklists but also include disclaimers that they cannot offer legal advice. This means the burden of accuracy falls entirely on you. Failing to follow your state’s unique guidelines for paperwork, naming conventions, or registered agent details can lead to your filing being rejected, costing you both time and money.
How to File Your Incorporation Paperwork
You’ve done the research, chosen a name, and prepared your documents. Now it’s time to make your business a legal entity. Filing your paperwork is the official step that brings your corporation to life. While it might seem intimidating, the process is straightforward once you know what to do. This is the moment your business transitions from an idea into a formal structure, so it’s important to get the details right to set yourself up for a smooth start and long-term success. Getting this step right ensures your personal assets are protected and you’re ready to operate legally.
Where to File Your Incorporation Documents
Incorporation is handled at the state level, so you’ll be working with your state’s business filing agency. For entrepreneurs in California, your destination is the California Secretary of State’s office. They manage all business entity filings and maintain the official records. The good news is that you don’t have to mail in a stack of papers. California offers an online portal called bizfile Online, which makes the submission process much more convenient. This system allows you to submit your Articles of Incorporation and other required forms directly, saving you time and giving you a clear record of your submission.
The Filing Process, Step by Step
The primary document you’ll submit is your Articles of Incorporation. This form officially creates your corporation and includes key details like your business name, purpose, number of shares you’re authorizing, and the name and address of your registered agent. Remember, your registered agent must have a physical street address in California—a P.O. Box won’t work. Getting these details right is critical, as errors can lead to rejection and delays. Our Entity Formation & Maintenance service guides clients through every step, ensuring all paperwork is handled correctly to legally establish your business entity without a hitch.
Paying the Fees and What to Expect Next
Filing your paperwork involves a state fee. In California, the standard filing fee for Articles of Incorporation is $100. You may also encounter other small costs, such as a fee to reserve your business name ahead of time or to get certified copies of your documents. Once you’ve submitted everything and paid the fee, the state will process your application. Processing times can vary from a few days to several weeks, depending on the state’s workload. While you wait for that official confirmation, you can start planning your next steps, like setting up your business accounting systems and preparing for your first board meeting.
You’re Incorporated! What’s Next?
Congratulations! You’ve filed the paperwork and officially formed your business entity. That’s a huge milestone worth celebrating. But filing your Articles of Incorporation is just the beginning. Now, the real work starts: setting up your company’s operational and financial foundation. Taking a few key steps right away will protect the legal status you just established and set you up for long-term success. Think of it as building the internal framework that will support your business as it grows.
Apply for an EIN and Get Your Business Licenses
First on your list should be getting a federal Employer Identification Number (EIN) from the IRS. Think of it as a Social Security number for your business. You’ll need an EIN to open a business bank account, hire employees, and file your business tax returns. Once you have your EIN, look into state and local requirements. Most cities and counties in California require businesses to have specific licenses or permits to operate legally. These vary based on your industry and location, so check with your local city hall to ensure you’re fully compliant from the start.
Drafting Your Corporate Bylaws and Records
Now it’s time to set the rules for how your company will run. If you formed a corporation, you’ll need to create corporate bylaws. If you have an LLC, you’ll draft an operating agreement. These internal documents outline everything from how you’ll make decisions to the roles and responsibilities of owners and managers. After drafting them, you should hold an initial meeting with your directors or members to officially adopt them. This step is critical for establishing your company’s governance structure and proving that you are operating as a legitimate, separate entity. Proper business accounting and management starts with having these foundational rules in place.
Open a Business Bank Account
One of the most important things you can do after incorporating is to open a separate bank account for your business. Commingling your personal and business funds is a common mistake that can cause major headaches and even put your personal assets at risk. Keeping your finances separate is essential for maintaining your corporate veil—the legal liability protection your entity provides. It also makes bookkeeping and tax preparation infinitely simpler. A dedicated business account gives you a clear record of your income and expenses, which is the bedrock of sound business tax planning and financial management.
How to Stay Compliant After Incorporating
Your responsibility to the state doesn’t end after you file your initial paperwork. To keep your business in good standing, you must meet ongoing compliance requirements. This typically includes filing an annual report and paying any associated fees. Failing to do so can result in penalties or even the dissolution of your corporation. It’s easy to miss these deadlines when you’re focused on running your business, but staying on top of them is non-negotiable. Should you ever receive a notice, having an expert in tax notice and audit representation can be a lifesaver. Set calendar reminders for your state’s deadlines to protect the business you’ve worked so hard to build.
Filing Annual Reports
Think of your annual report as a yearly check-in with the state to confirm your business is still active and its information is up to date. In California, this is called a Statement of Information, and it’s required within 90 days of incorporating and then every year after. It’s a non-negotiable deadline, and the consequences for missing it are serious. If you fail to file on time, the state can impose penalties and eventually dissolve your corporation. This means your business loses its legal standing and the liability protection you worked so hard to secure. Setting a recurring calendar reminder for this deadline is one of the simplest and most effective ways to protect your company’s future.
Observing Corporate Formalities
Beyond filing paperwork, you need to operate your business like the separate legal entity it is. This is known as observing corporate formalities, and it’s crucial for maintaining your liability shield. This means holding annual meetings for shareholders and directors, keeping detailed minutes of those meetings, and officially recording major business decisions. It also means never mixing personal and business funds. These practices demonstrate that your company is a distinct entity, not just an extension of yourself. Proper business accounting and management are essential here, as they create the clean financial records needed to prove your compliance and protect your personal assets if your business ever faces legal challenges.
Common Inc Filling Mistakes to Avoid
Filing for incorporation is an exciting step, but it’s easy to get tripped up by the details. A few common missteps can lead to rejected paperwork, legal issues, or unexpected tax bills down the road. The good news is that these mistakes are entirely avoidable with a bit of foresight. By understanding the most frequent pitfalls, you can set your business up on a solid legal and financial foundation from day one, saving yourself a lot of stress and money in the long run.
Choosing the Wrong Business Structure
This is one of the biggest and most expensive mistakes you can make. Your business structure—whether it’s an LLC, S-Corp, or C-Corp—affects everything from your personal liability to how you pay taxes. For example, a tech founder planning to seek venture capital might need a C-Corp, while a freelance consultant might find an S-Corp or LLC more tax-efficient. Choosing the wrong business structure can create major headaches later. It’s crucial to get strategic advice on the best entity formation path for your specific goals before you file any paperwork.
Forgetting to Do a Thorough Name Search
You’ve landed on the perfect name for your business—but is it actually available? One of the most common mistakes is using a non-compliant company name that’s already taken or too similar to another registered business. This can lead to your application being rejected or, worse, a trademark dispute later on. Before you get attached, conduct a thorough search on your state’s business registry and the U.S. Patent and Trademark Office’s database. Don’t forget to check if the domain name and social media handles are available, too. A few minutes of searching now can prevent a major rebranding hassle.
Thinking You Have to Do It All Yourself
The temptation to handle incorporation yourself to save money is strong, but it’s a classic case of being penny-wise and pound-foolish. Many new owners fall into the trap of thinking they don’t need to hire a filing assistance service, but the process involves complex legal and financial details that are easy to miss. A simple error on a form could get your filing rejected, delaying your launch and costing you more in refiling fees. Getting professional help isn’t just about filing paperwork; it’s about getting strategic guidance to ensure your business is structured for long-term success with ongoing business accounting and management.
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Frequently Asked Questions
What’s the real difference between an LLC and an S-Corp? Think of an LLC as being about legal protection and flexibility, while an S-Corp is a specific tax status. An LLC separates your personal assets from your business debts but lets you choose how you’re taxed. An S-Corp is a tax election that can potentially save you money on self-employment taxes by allowing you to pay yourself a reasonable salary and take the rest of the profits as a distribution. Many business owners form an LLC first and then elect to be taxed as an S-Corp later. The best choice depends entirely on your business’s income and goals.
Can I just be my own registered agent? Yes, you can legally act as your own registered agent in California, but it comes with a few strings attached. You must have a physical street address in the state (not a P.O. Box) and be available during all business hours to receive official documents. This means your home address could become public record. Using a professional service or your accounting firm ensures someone is always available and keeps your personal address private, which is a trade-off many founders find worthwhile.
How much should I budget to incorporate my business in California? While the state filing fee for the Articles of Incorporation is a fixed cost, that’s just the starting point. You should also account for other potential expenses, such as reserving your business name, obtaining necessary local business licenses and permits, and potentially hiring a professional service to handle the paperwork. Because every business has unique needs, a precise total can vary. We find that a custom quote is the best way to give you an accurate picture, which is why our pricing is available upon consultation.
Do I really need a separate bank account for my new corporation right away? Absolutely, and you should make it one of your first priorities. Opening a dedicated business bank account is crucial for maintaining the limited liability protection you just worked to establish. Mixing business and personal funds, known as “commingling,” can make it easier for someone to argue in court that your business isn’t a separate entity, putting your personal assets at risk. It also makes your bookkeeping and tax preparation much cleaner and more accurate from day one.
I’ve filed my paperwork. Am I done with compliance for the year? Filing your initial paperwork is the first major step, but it’s not the last. To keep your corporation in good standing with the state, you have ongoing responsibilities. In California, this includes filing a Statement of Information within 90 days of incorporating and then every year after that. You’ll also need to stay on top of annual franchise taxes and other filings. Missing these deadlines can lead to penalties or even the suspension of your business, so it’s important to create a compliance calendar from the very beginning.