Operating in California in 2026 requires understanding the Statement of Information filing windows and the new Workplace Know Your Rights mandates. States Business Consulting ensures your Golden State entity remains compliant from Silicon Valley and Los Angeles to San Diego.
I. Golden State Entity & Tax Setup
Secretary of State (bizfile)
Formalize your LLC ($70) or Corporation ($100) via the bizfile Online portal. California entities must file an Initial Statement of Information within 90 days of formation ($20) to maintain good standing.
SOS bizfile PortalFranchise Tax Board (FTB)
California imposes an 8.84% corporate tax and a $800 minimum franchise tax. While new entities are generally exempt from the $800 tax in their first year, they must register for electronic payments immediately.
FTB Tax PortalSales Tax & CDTFA
Register with the California Department of Tax and Fee Administration for a Seller's Permit (no fee). Note that local district taxes often push the total sales tax rate well above the 7.25% statewide base.
CDTFA RegistrationII. 2026 Compliance & Legal Mandates
Statement of Information (SOI)
Corporations: Filed annually.
LLCs: Filed every two years.
Failure to file within the 6-month window based on registration date triggers a $250 non-waivable penalty and suspension.
2026 Regulatory Highlights
- Min Wage: $16.90/hour (Jan 1, 2026)
- New: Workplace Know Your Rights Notice
- New: Expanded Pay Transparency (SB 642)
- FinCEN Beneficial Ownership (BOI)
III. Workforce & Employer Systems
Employer standards are managed by the Department of Industrial Relations (DIR) and the EDD:
EDD Payroll Taxes
Employers must register for an EDD Account Number. This handles Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and Personal Income Tax (PIT) withholding.
EDD Employer ServicesWorkers' Comp & Safety
Mandatory for all employers with 1 or more employees. Additionally, businesses must implement an effective Injury and Illness Prevention Program (IIPP) to comply with Cal/OSHA standards.
DWC Official SiteCalifornia New Hire Reporting
All California employers must report new or rehired employees within 20 days of the start date to the Employment Development Department (EDD) to support child support enforcement.
EDD New Hire Registry