How to Apply for a California Business License

Make your business legal to avoid sharp penalties in California.

If you are engaged in business in California, intend to sell or lease personal property in California that is subject to sales tax, or will be in business in California temporarily, but longer than 30 days, you are required to have a California business permit or license whether you are a sole proprietorship, partnership, corporation or organization. California business permits and licenses are issued by the California Board of Equalization (BOE).

Instructions

1. Create a name for your business. Check it against sos.ca.gov to make sure it is still available.

2. Visit your local city hall to obtain the requisite forms to create a business name, or DBA ("doing business as"), an application for a California seller's permit, and an application for a local business license. Although fees vary by municipality, the average cost for a business license is $75 annually in California.

3. Contact the local newspaper to have your new business name, or DBA, published in the newspaper. Newspapers generally charge a minor fee for this service.

4. Obtain a seller's permit if you are a retailer or wholesaler. Seller's permits are available from the California Secretary of State for no additional charge (see Resources).

References

• California State Board of Equalization: Register for a Permit or License

Resources

• California Secretary of State