California startup companies face many challenges in the business world. While startups are often occupied with capital raising and product development, it is also important to prioritize California corporate legal requirements so that the startup does not face legal difficulties in future transactions. Compliance with California law is essential to avoid liability and achieve the founders' goals, including continued business development, acquisitions, and other strategic business transactions.

Practical Law has compiled this Toolkit of resources to identify some of the key corporate considerations for startups and growing businesses in California. These resources help startup business owners and the counsel advising them to navigate the legal complexities of the startup world. They address key issues, such as:

For a comprehensive startup company toolkit for Delaware companies, see Startup Company Toolkit. The Toolkit includes links to resources explaining capital raising, corporate governance and housekeeping, shareholder relations, real estate and insurance issues, acquiring and protecting intellectual property, data privacy, software and information technology issues, commercial transactions, liquidity events, workplace and labor issues with employees, contractors, and service providers, and employee compensation and benefits.

For checklists that provide general guidance on key issues to consider when starting a new business and some common legal mistakes to avoid, see Setting Up a New Business Checklist and Startup Companies: Avoiding Key Legal Mistakes Checklist.

Consider the applicability of reporting requirements under the Corporate Transparency Act (CTA) in connection with entity formation, governance, transactions, and dissolution (see FinCEN BOI Reporting website). For more information on the CTA, see Practice Note, Corporate Transparency Act Beneficial Ownership Reporting and FinCEN's answers to frequently asked questions (FAQ).