How to Get a California Business License

Dilbert

Applying for a business license can be a very exciting thing. Having started many small businesses here in L.A, I've gone through the process several times. California has more business license applications than any other state and luckily it is a relatively simple process.

Instructions

1. First off, make sure you know what kind of business you are starting (sole proprietorship, LLC, Limited partnership, etc.). Because most small business license applications are for sole proprietorships, I will focus on that. Registering a business in california requires a few forms. There is the fictitious business name, or DBA, the seller's permit, and the local business license, which can be obtained by visiting your local city hall. Average yearly cost for a business license in California is roughly $75.

2. Once you have a name ready, do a search to make sure that it is unique. Visit sos.ca.gov for California business searches.

3. Visit business.gov for information on local business requirements. Most California business licenses are issued locally, by the city that the business operates, in addition to the other forms you will need to fill out, which are outlined below.

4. You will need to file a DBA or fictitious business name and have it published in a local newspaper. You can view my article on obtaining a DBA in California at the bottom of this page in the resources section.

5. In california, all retailers and wholesalers will need to obtain a seller's permit, which is free to all california residents. This process is very easy and the forms are available online at the address above.

6. Those hiring employees will need to fill out additional employer forms for tax purposes and business insurance purposes.

7. Several online companies will do the entire process of obtaining a california business license for you, as well as the seller's permit and Fictitious business name. This is a decent option for some people who feel intimidated by the process or are too busy to worry about it themselves.

Tips & Warnings

• When weighing whether or not to do the process yourself or have a website process it or you, realize that the cost of having a third party do it is about a $100 more.

• If you apply for a business license by yourself, apply in person rather than mailing so you can ask questions and get any mistakes taken care of on the spot.

Resources

• How to file for a DBA in Califonia
• How to make quick money from home