“Quasi-California” Corporations Made Subject to California’s Corporate Laws

Even if your business is an out-of-state corporation, if it fits the profile of a “quasi-California” corporation then it is subject to specified provisions of California Corporations Code. Your Company is a “quasi-California” corporation if (1) more than half its business (based upon a three-factor formula including property, payroll, and sales) is done in California (the “doing-business” test); and, (2) more than half of its voting securities are held of record by persons having addresses within the state of California (the “voting-shares” test). Stubbs Alderton & Markiles, LLP, wrote a good post on the specifics of quasi-California corporations. Read more here.