August 8, 2022

Volume XII, Number 220

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August 08, 2022

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For A Limited Time Only - California Is Giving Away Corporations, LLCs And More!

As a result of the recent enactment of California's 2022-2023 Budget Bill, the California Secretary of State's office has announced a temporary waiver of many business entity filing fees.   This waiver will last until June 30, 2023, the end of the state's current fiscal year.

Here is the Secretary of State's list of filings for which no filing fee is currently being imposed:

  • Articles of Organization - CA LLC

  • Registration - Out-of-State LLC

  • Articles of Incorporation - CA Corporation - Benefit

  • Articles of Incorporation - CA Corporation - Close

  • Articles of Incorporation - CA Corporation - General Stock

  • Articles of Incorporation - CA Corporation - Insurer

  • Articles of Incorporation - CA Corporation - Professional

  • Articles of Incorporation - CA Corporation - Social Purpose

  • Registration - Out-of-State Corporation - Accountancy or Law (Professional)

  • Registration - Out-of-State Corporation - Insurer

  • Registration - Out-of-State Corporation - Stock

  • Articles of Incorporation - CA Nonprofit Corporation - Mutual Benefit

  • Articles of Incorporation - CA Nonprofit Corporation - Mutual Benefit - Common Interest Development

  • Articles of Incorporation - CA Nonprofit Corporation - Mutual Benefit - Credit Union

  • Articles of Incorporation - CA Nonprofit Corporation - Public Benefit

  • Articles of Incorporation - CA Nonprofit Corporation - Public Benefit - Common Interest Development

  • Articles of Incorporation - CA Nonprofit Corporation - Religious

  • Registration - Out-of-State Corporation - Nonprofit

  • Articles of Incorporation - CA Corporation - Agricultural Cooperative Association

  • Articles of Incorporation - CA Corporation - Cannabis Cooperative Association

  • Articles of Incorporation - CA Corporation - General Cooperative

  • Certificate of Limited Partnership - CA LP

  • Registration - Out-of-State LP

Note that the Secretary of State will continue to impose other fees not listed above.

It is unlikely that this temporary suspension of fees will have any significant impact on the number of business entities being formed under California law.  Historically, these fees have been relatively modest.  For example, the fee for filing articles of incorporation is $100.  Cal. Gov't Code § 12186(c).  The real costs are the ongoing costs associated with the crushing tax and regulatory burdens placed on businesses by the state.  According to the Tax Foundation, California ranks 48th in business tax climate (just ahead of New York and New Jersey).  

© 2010-2022 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XII, Number 188
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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
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