How to Start a Company in California

You may have an idea for a business that you want to start in California. California is a great state for many types of businesses, not only because of its weather, but also for its huge economy, which is the eight largest in the world. Its location and infrastructure also facilitates an accessible system of import and export of goods. It's important to know the processes involved in starting a company in California, so you can start your business with the proper documents and registrations.

Things You'll Need

• Business plan
• California address
• FTB, IRS, BOE, EDD registrations
• Business by-laws registrations

Instructions

1. Create a business plan to determine your business type. A business plan creates a structure for your entrepreneurial ideas and gives you an actionable plan to work with when you're starting your business. Knowing your business type is important when starting a company in California since you need to indicate this when you submit a permit application. Examples of business types are legal services, advertising agencies, art dealerships, etc.

2. Choose a location in California for your business. You should consider what region of California your business will thrive in, as well as the city or region where you want to set up your business. Think about how your business can fit the needs of Californians. You may contact the California Business Investment Services (CalBIS), which gives advice on site selection for companies.

3. Register with the Franchise Tax Board (FTB) and the Internal Revenue Service (IRS). You have to follow federal in addition to California tax and business guidelines. FTB taxes are collected from companies for personal and corporate income and franchise taxes for the State of California. IRS taxes are collected from companies for federal taxes and government services.

4. Register with the State Board of Equalization (BOE) and the Employment Development Department (EDD). The BOE issues seller's permits and collects taxes and fees from sales. The EDD issues state numbers and collects payroll taxes, as well as unemployment insurance, employment training tax, state disability insurance, and California personal income tax withholding. The Secretary of State office lists agencies that administer taxes in California at: http://www.sos.ca.gov/business/be/tax-information.htm

5. Register the articles, statement, and certificates depending on the business structure of your company. You must register these documents with the California Secretary of State or your local county government. The documents you need vary depending on the structure of your company, which can range from corporation, to sole proprietorship. There are different filing procedures for each business structure, which vary greatly. Corporations need to file documents with the California Secretary of State, while sole proprietorships need to register at the county level.

References

• Secretary of State: Starting a Business
• Business.gov: California
• Deborah Chew: Starting a Business in California

Resources

• Central California Small Business Development Center: Resources
• US Small Business Administration: Resources
• California Department of Consumer Affairs: Resources