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California · How-To Guide

How do I get a business license?

California Secretary of State (entity formation) / California Department of Tax and Fee Administration - CDTFA (seller's permit) / City/County for local business licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the California Secretary of State (for LLCs and corporations) at sos.ca.gov/business-programs - file online via BizFile California
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the California Department of Tax and Fee Administration (CDTFA) for a California Seller's Permit if you sell or lease tangible personal property - free to register at cdtfa.ca.gov; required to collect and remit California sales tax
  5. Register with the California Employment Development Department (EDD) if you have employees - payroll tax registration at edd.ca.gov
  6. Obtain a local business license from your city and/or county - almost all California cities require a local business license (called a business tax certificate in some jurisdictions); unincorporated county areas may also require a county business license
  7. Check for industry-specific professional licenses: contractors (CSLB), health professionals, real estate agents, cosmetologists, and many others require state professional licenses through the relevant California licensing board
  8. Renew entity biennial report with Secretary of State; renew local license per your city's schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Business address (physical location)
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $70 filing fee (waived for first year for businesses formed 2021-2023 - confirm current status); corporation: $100; Seller's Permit: free; local business license: varies widely ($25-$500+ depending on city and business type); LLC minimum franchise tax: $800/year payable to FTB regardless of income RENEWAL: LLC/Corp biennial statement of information; local license annual or biennial per city ONLINE OPTION: Yes - BizFile California at bizfilesonline.sos.ca.gov (entity formation and filings); cdtfa.ca.gov (seller's permit); city portals vary WHERE TO GO: California Secretary of State (entity formation); CDTFA (seller's permit); City Finance/Business Tax Office (local license); County for unincorporated areas
Online Option
Yes - BizFile California at bizfilesonline.sos.ca.gov (entity formation and filings); cdtfa.ca.gov (seller's permit); city portals vary
Where to Go
California Secretary of State (entity formation); CDTFA (seller's permit); City Finance/Business Tax Office (local license); County for unincorporated areas
County-specific variations apply

California's local business licensing is almost entirely city-level - each of California's 482 cities has its own business license requirements and fees. County business licenses apply in unincorporated areas only. Los Angeles, San Francisco, San Diego, San Jose, Sacramento, and other cities have their own business tax portals. Verify local requirements with your specific city or county.

California Notes

Important state-specific details

  • California LLC minimum franchise tax: $800/year due to the Franchise Tax Board (FTB) regardless of business income or profit - this is one of the highest minimum taxes in the nation.
  • California Seller's Permit (CDTFA): required for businesses selling taxable tangible goods; California's base sales tax rate is 7.25% - local district taxes add 0.25%-3.25% more in most areas.
  • California Contractor's State License Board (CSLB): all contractors doing work over $500 (labor + materials) must be licensed - cslb.ca.gov.
  • DBA (Fictitious Business Name): sole proprietors or partnerships operating under a name other than their legal name must file a DBA with the County Clerk and publish notice in a local newspaper.
  • California has a state income tax; businesses pay California corporate tax or pass-through income to individual returns; LLC annual minimum $800 franchise tax applies.
Official Source

State office contact

State Office
California Secretary of State, Business Programs - sos.ca.gov/business-programs | (916) 653-6814; CDTFA (seller's permit) - cdtfa.ca.gov | (800) 400-7115