California Small Business Guide
Starting a small business in California can demand permits and registrations required by state, local, county and federal governments. The types of requirements governments demand can depend on the kind of business, the legal definition of the company and the location of the business. The Governor's Office of Economic Development offers a wealth of information to help new companies determine specific requirements and establish an operating location.
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Business Name Registration
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Legal names can differ from the name a company uses in public. The legal name for a sole proprietorship is the name of the business owner, and a partnership name incorporates the partners' last names and the name listed in the partnership agreement. Any California for-profit business operating under a different name than the legal name must file a fictitious name statement (also called a "doing business as" registration) with the county clerk or recorder's office. For example, if Bob Smith opens a hardware store, the store's legal name is Bob Smith. If Bob calls his store Bob's Complete Hardware, he must file for a fictitious business name.
Employer Identification Number
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The IRS requires all corporations, business partnerships and businesses with employees to obtain an employer identification number (EIN). Small business owners can obtain an EIN through the IRS online, over the phone, by fax or through the mail. California businesses often require an EIN for establishing sales contracts or partnership agreements with other businesses.
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Location
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Selecting a business location can depend on the type of business operation and the city or county in which the business operates. Individual counties and local communities maintain individual zoning laws and ordinances, which define land use, noise regulations and transportation rules. Site considerations can include building requirements, facility use, business transportation requirements and business utility needs, such as electricity, natural gas, water and communication lines. The California Governor's Office of Economic Development provides an online worksheet to help business owners select an appropriate site location.
Seller's Permit
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California requires businesses to obtain a seller's permit when leasing or selling merchandise, personal property or vehicles. The seller's permit allows business owners to sell products in retail or wholesale businesses. California offers two types of seller's permits, a "temporary" permit for selling products for a maximum of 90 days and a "regular" permit for selling products on an ongoing basis. Businesses selling on a regular basis from multiple locations must obtain a seller's permit for each sales location.
Permits
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Permit requirements can vary depending on the county and city where a company is located and the type of business operated. For example, the City of Alameda requires all business owners to obtain a business license from the city. The city requires an industrial waste water discharge permit for any business that might discharge hazardous materials into the sewer system, such as a manufacturing company. The city requires a land use permit for all businesses operating within the city limits. The county of Alameda might require a business property statement from businesses to report property, such as equipment and supplies, for county tax assessment purposes.
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References
- U.S. Small Business Administration: Starting a Business in California
- Governor's Office of Economic Development : Site Selection
- Internal Revenue Service: Employer ID Numbers (EINs)
- U.S. Small Business Administration: Business Name Registration (Doing Business As)
- California State Board of Equalization: California Seller's Permit Application
- Govenor's Office of Economic Development: Permit Listing
Resources
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