<p>This section will explain the basic procedures for setting up a  corporation   in California.  The procedure for incorporation in  California is similar but   not identical to many other states.</p>
<p><strong>CORPORATE NAME</strong></p>
<p>The first step is to reserve the corporate name.  Since there are  hundreds of   thousands corporations in California, many names are not  available.  Therefore,   the first step is to check if the corporate  name is available. Usually, if the   corporate name is available, it can  be reserved with the Secretary of State of   California for 60 days.</p>
<p><strong>ARTICLES OF INCORPORATION</strong></p>
<p>After the corporate name is selected, the articles of incorporation  are prepared   and filed with the Secretary of State of California.</p>
<p><strong>FIRST MEETING OF BOARD OF DIRECTORS</strong></p>
<p>After the articles of incorporation have been filed with the  Secretary of State,   the directors hold their first meeting. At the  meeting, the directors and officers   are elected, stock issuance is  authorized, bylaws are adopted, corporate office   address is  established, bank selected, and other initial matters.</p>
<p><strong>TAX IDENTIFICATION NUMBER</strong></p>
<p>After the corporation has filed its articles of incorporation, it  may obtain a   federal tax identification number from the Internal  Revenue Service using IRS   form SS-4.</p>
<p><strong>STOCK ISSUANCE</strong></p>
<p>After the board of directors have authorized the initial stock, the  corporation   proceeds to issue stock.  The shareholders must fund the  corporation with the   initial capital. Before stock is issued, a permit  must be obtained from the   Department of Corporations. However, if the  shareholders of the corporation is   limited to less than 35 persons,  then it is possible to issue stock by registering   with the Department  of Corporations under Corporate Code Section 25102(f), which   is a  simplified and common method to issue stock.</p>
<p><strong>BUSINESS LICENSE</strong></p>
<p>In most cities, it is required to obtain a city business license from the city   where the corporation is located.</p>
<p><strong>SELLER'S PERMIT</strong></p>
<p>If the corporation will be selling products in California, it must  obtain a   seller's permit from the State Board of Equalization.  Also,  the corporation   must pay California sales tax for products it sells.</p>
<p><strong>COMPLETION OF CORPORATION</strong></p>
<p>After the articles of incorporation, first meeting of directors, and  stock   issuance are completed, the basic formation of the corporation  has been   completed. However, there are other business matters that  must be completed   to set up the corporation as an existing business  which varies depending on   the type of company.</p>
<p>This outline states the basic procedures for setting up a  corporation in   California.  It is not intended to be a complete guide  and if you are intending   to set up a corporation you should consult  with a lawyer and accountant.</p>