What Do I Need to Start a Business in California?
California's small businesses represent the largest network of small employers in any state, according to businessca.gov. The 3.5 million small businesses in the state benefit because California receives four times the venture capital of any other state. California's business infrastructure excels at reliably moving business goods.
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Requirments
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Sole proprietorships comprise the largest segment of small businesses in California. Other business structures include partnerships, limited liability corporations, corporations and nonprofit corporations. Doing business in California requires registration of a "fictitious business name statement" with the county clerk in the county of the business owner's primary place of business, according to California's Governor's Office of Economic Development. A business needs to file the statement within 40 days of starting the business.
Copies
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Counties may require the filing of several copies of the statement. The county clerk files, certifies, then returns all copies to the registrant. The county clerk retains the original.
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Fees
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California counties as well as cities charge different fees for the "fictitious business name statement." You can obtain information on fees from the individual county or city.
Notice
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The registrant then publishes the statement in the county containing the principal location of the business. It must appear in a newspaper with general circulation once a week for four consecutive weeks. Within 30 days of the last publishing date, the registrant files an "affidavit of publication" at the county clerk's office.
License
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The majority of cities and counties in California require a business license. Jurisdictions may also require various permits pertaining to local occupancy and parking regulations depending on the type of business the registrant occupies. Businesses in the incorporated area of a particular city should contact the city's business licensing department. Licensing fees vary depending on the jurisdiction. It may be a flat fee, a percentage or a combination of both.
Local Taxes
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California county governments require business owners to pay local business and property taxes. The California State Board of Equalization oversees county assessor's activities. Registrants obtain tax registration at the county assessor's office. Jurisdictions levy property tax on 100 percent of the assessed value of business property, according to the Governor's Office of Economic Development. Business.gov lists contact information for northern/central California and southern California for permit assistance.
Other local taxes, such as hotel occupancy, may require special permits as well as deposits. Local city or county clerks' offices have information available on specific requirements.
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References
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