How to open a company in California in 2020?


Starting your own business in California is an exciting and rewarding experience. If you have your own business project outside of the United States and it is connected with IT technologies, then you must open a company in California to develop your project using the infrastructure of this unique state. What will it do for you?

First, expertise: In California, there are many ongoing developments, discussion, and research events dedicated to various technologies. Even just being able to constantly participate in this community greatly develops all IT entrepreneurs and developers.

Secondly, we have connections among the best representatives of the world community. As you know, at all times, it was not money that decided everything, but connections. If you are known and constantly communicate in professional events, then you gradually become a high-class expert yourself, and therefore the chances of implementing and developing your ideas multiply, compared to the reclusive and isolated type of behavior of entrepreneurs.

Third, investment: California ranks first in terms of investment in IT projects in the world. There are a lot of professional investors who, if they do not invest in your project, will tell you how to do it with your future project.

Sole proprietorship

A sole proprietorship is the simplest business structure and is not a legal entity. This is the simplest type of business and therefore it does not require state registration. So, if you would like to organize your own small business in California, then you can choose this business structure. However, the problem is that sole ownership does not have any protection from personal liability for all actions that you may take in the conduct of your business activities.


A partnership is a situation where two or more people join together to conduct business on the terms stipulated in the partnership agreement. A formal written partnership agreement that sets out all the rights and obligations of partners is absolutely necessary for this type of business.

We strongly recommend that you enter into a written partnership agreement that sets out all the rights and obligations of the partners. This should be done because oral partnership agreements are the easiest way to get a lot of disputes with your partners about who is responsible for what and who owes what to whom.

For example, partnership agreements should include clear responsibilities for partners, how profits and losses are distributed, and many other important provisions when starting a business in California.


The Corporation is also an independent legal entity, separate from its founders, who own, control and manage it. Corporations can enter into contracts, take on debt, and pay taxes separately from their owners. In other words, the Corporation itself, and not the shareholders who own it, are legally responsible for the actions and debts that the business bears.

C-corporations are taxed at a lower Federal income tax rate than individual entrepreneurs. Thus, resident business owners who plan to invest back in their business prefer C-Corporation as a way to reduce their income tax.

C-corporations are subject to double taxation, which means that the Corporation’s income is taxed, and the wages paid to its employees are also taxed.

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