How to File an S Corp in California: DIY Guide | Evin Wick
- Evin Wick
- Jun 26
- 3 min read
Filing as an S Corporation in California can unlock significant tax savings but it also comes with fees, filings, and ongoing compliance requirements at the federal, state, and local level. If you’re ready to file S Corp California yourself, this updated guide walks through every step, from forming your LLC to paying your first tax bill.
1. Choose & Reserve Your Business Name
Brainstorm names that end in “LLC,” “L.L.C.,” or “Limited Liability Company.”
Search the California Secretary of State’s business database to confirm availability: CA SOS Business Search
(Optional) File a DBA at your county recorder’s office if you want to operate under a different name.
2. File Articles of Organization (Form LLC-1)
File online via BizFile: File LLC-1
Fee: $70.
Tip: Triple-check every entry—typos here carry through to all your future filings.
3. Draft & Store an Operating Agreement
California law expects every LLC to have one, even single-member entities.
You don’t file it with the state, but courts and banks will ask to see it.
4. File the Initial & Biennial Statement of Information (Form LLC-12)
Due within 90 days of formation and every two years thereafter.
Submit online at BizFile: File LLC-12
Fee: $70.
Late fee: up to $250, plus possible suspension of your LLC.
5. Obtain an EIN (Employer Identification Number)
Apply free and instantly via the IRS: Get an EIN
Use your EIN (not your SSN) on all federal and state tax forms.
6. Elect S-Corp Status (Form 2553)
Eligibility: no more than 100 shareholders, all U.S. citizens or residents; only one class of stock (irs.gov)
File Form 2553 by 2 months + 15 days after formation: About Form 2553
Missing this deadline means you’ll owe full Social Security & Medicare taxes on all your net business income.
7. Register for Local Permits & Licenses
Most cities require a Business Tax Registration Certificate (BTRC).
Cost of business license California varies—find exact fees via CalGOLD: CalGOLD Permit Assistance
If you filed a DBA, register that at your county recorder’s office.
8. Open a Dedicated Bank Account
Use your LLC’s legal name + EIN.
Consider digital banks like Rho for free checking and modern UX.
9. Set Up Bookkeeping & Payroll
Software: QuickBooks, Xero, or free Wave. Even better? the free Puzzle.
To meet the “reasonable-salary” requirement:
Research comparable wages
Run payroll via Gusto (starts at $49/mo + $6/employee)
Withhold and remit federal & California payroll taxes on time
10. Understand Your Tax Obligations
Estimated Tax Payments
Federal: Form 1040-ES due Apr 15, Jun 15, Sep 15, Jan 15
California: Form 540-ES on the same dates
California S Corporation Tax
Tax rate: 1.5% of net income, with a minimum franchise tax of $800 annually.
File Form 100-S by Mar 15 each year
LLC Annual Fees & Taxes
LLC annual tax: $800 minimum via Form FTB 3522
LLC fee (if gross receipts > $250K): pay estimated fee by Form FTB 3536: 2025 FTB 3536
Biennial Statement fee: $70 every two years.
Self-Employment Tax Savings
As an S Corp owner, you pay self employment tax California-style (15.3% Social Security + Medicare) only on your salary—not on distributions.
11. Maintain Compliance Indefinitely
Form LLC-12 every two years.
Form 100-S due Mar 15.
Form 1120-S due Mar 15.
Local license renewals (BTRC, DBA) per city rules.
Pro Tip: Create calendar reminders a few weeks before each deadline to avoid late-file penalties and stay in good standing.
Ready to File Your S Corp in California?
You’ll navigate three levels of government, multiple filings, recurring taxes, and a “reasonable-salary” payroll setup—but the potential tax savings can be substantial. If the DIY path feels overwhelming, consider our turnkey S Corp services that handle the filing for S Corp in California and ongoing compliance so you can stay focused on growing your business.
Evin Wick JD, LLM is a Georgetown-trained tax lawyer and co-founder of Scorpu, where he channels two decades of small-business tax expertise into streamlined S-Corp, bookkeeping, and payroll solutions for solo consultants.
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