Is it profitable to open a company in California: features of the U.S. state

Is it profitable to open a company in California: features of the U.S. state

California is the most populous state in the country. It has developed business and attracts entrepreneurs and investors worldwide. The gross income in the jurisdiction exceeds the figures those of some EU countries - so the relevant question is how to register a company in California.

Buying a ready-made company in the USA requires at least one director of the company, who can be a natural or legal person. Information about the management of the organization is not disclosed when making an entry by the registration authorities. The registration itself is not public.

Advantages of establishing a company in California

In times of economic downturn and political instability, many businesspeople seek to protect their assets and boost them later on. Buying a company in the U.S. in California is one of the most promising solutions. The country in general has a stable economy, with many reputable banking institutions.

An American market is a promising space for promoting innovative products and resources. Most residents of the jurisdiction are capable of purchasing new services. The number of consumers is high and, according to statistics, it is growing. The country has more than 300,000,000 people living in the country, with the trend of population growth persisting. The majority of the population is economically active.

According to the IMF, the country has a high GDP per capita. The main part of consumer spending is related to services. The trend of the growth of electronic commerce is noticeable.

It is relatively easy to open a company in the States. The registration process is simplified. In the country it is possible to get a loan quickly and to ensure the execution of the contract.

Features of registration, functioning of offshore companies

Opening an offshore in California has many benefits.  In the U.S. corporate legislation is developed and the tax system is optimized. Jurisdiction resembles a region with great prospects for development in different industries.

Features of registration:

  • All companies in the territory of the state work with fiscal authorities through electronic document management. There are no blue stamps, there is no need to submit a paper copy of the financial report. Information about the management bodies is stored in the electronic registry.
  • When entering data about an organization in the registry, it is possible to carry out activities without financial barriers.
  • The main owner of the company may be a non-resident of the state. 

California is considered an attractive jurisdiction for businesspeople and investors. One of the forms of doing business in the state is a general partnership. The main activity of this company is aimed at making a profit.

To start an LLC, you must have a special license. Reporting is submitted in electronic format. LP is created by at least two participants, one of whom may be a non-resident of the state. It is also possible to register LLCs and corporations. To open an account in California and get answers to your questions about registration, please contact our experts at IT-OFFSHORE.

Taxation: what is important to know

The tax base may vary depending on the annual income of the organization, received in the state. If the person is a non-resident, the taxes can be replaced by annual contributions.

For business participants there is a  9.3% sales tax rate. Property taxes are minimal and depend on the market value of the property.

General partnerships must pay state duty when conducting business within  the state of California. Command societies must pay $800 per year to the state. Limited liability companies pay a fee of $600 annually.

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