Choose a Business Structure and Register Your Business

California funds a network of small business technical assistance centers that provide no-cost one-on-one consulting and low-cost training services to small businesses and entrepreneurs with all stages, including but not limited to:

Startup business plans
Access financing (i.e., loans and grants)
Enter new markets
Strengthen operations and build resiliency
and more

With over 30 languages available, find your local center and connect with an advisor today.

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Choosing Your Business Structure

There are multiple options to consider when choosing your business structure. Some business structures include sole proprietorships, partnerships, LLC’s, C-Corps, and S-Corps. Knowing your long-term business goals, the benefits of each business structure, and how each business structure is taxed is important to help you make the right decision.

Registering Your Business

After you’ve decided what your business structure will be, you’ll want to register your business with the state and your county. LLCs, Corporations, LPs, LLPs, or GPs operating in California need to register and form their legal entity with the California Secretary of State’s Office, file appropriate taxes, register as an employer, and obtain business licenses and other permits from appropriate cities or counties. Depending on your business type there may be additional permits, licenses or certifications that your business needs to acquire.

For personalized technical assistance, we recommend getting connected with a small business advisor in your area. The Small Business Center network provides free one-on-one consulting and low-cost training. Click here to connect with your local Center and an advisor.

State Requirements

Business Entity Filing
Business entity filing is not necessary for sole proprietors, but if you intend to form a corporation, limited liability company or partnership, you must file with the California Secretary of State(SOS).

State Income Tax
All businesses are required to file state income tax with the Franchise Tax Board(FTB).

Seller’s Permit
If you will be selling tangible property, consult the California Department of Tax and Fee Administration(CDTFA; formerly the Board of Equalization).

For Employers
If you plan to have employees, you will need to consider the following:

Wages, Hours, & Working Conditions: Businesses with employees must comply with laws establishing minimum standards for wages, hours, and working conditions. Consult the California Department of Industrial Relations(DIR).
Employer Registration: An employer is required to file a Registration Form within 15 days after paying more than $100 in wages to one or more employees. Consult the Employment Development Department(EDD).
Workers’ Compensation: Businesses with one or more employees must maintain Workers’ Compensation Insurance coverage. Consult the California Department of Industrial Relations(DIR).

Import and Export Goods
For information on importing and exporting goods, consult the following departments:

Department of Tax and Fee Administration: Sales and Use Tax – Interstate and Foreign Commerce
Department of Public Health: Food and Drug Branch Export Document Program

CaleProcure
Register your business for California’s State Procurement and Certification Programs to search for contracting opportunities with the California State government.

Visit the Business Learning Center for more information on getting started with procurement.

Federal Requirements

Internal Revenue Service (IRS)
Employers with employees, business partnerships, and corporations, must obtain a Federal Employer Identification Number (EIN) from the IRS. Businesses can obtain appropriate federal income tax forms using the IRS website. You can contact them at (909) 388-8108.

Importing and Exporting Goods
For information on importing and exporting goods, consult the following departments:

U.S. Customs and Border Protection –Basics of Exporting and Importing
U.S. Department of Commerce –US Export Assistance Center Export Licensing and Commerce Control List
U.S. Department of Agriculture –Exporting Goods and Importing Goods
U.S. Food and Drug Administration –Exporting Food Products and Importing Food Products

Local Requirements

CalGOLD
The Governor’s Office of Business and Economic Development (GO-Biz) offers the CalGOLD online permit assistance tool to identify local, state, and federal permit information for businesses.CalGOLD provides online resources, application forms, and contact information for the various agencies that administer and issue these permits. For permits and registrations administered by the State of California,CalGOLD also includes a Forms and Fee Finder with direct links to applications and fee information. Simply enter your city and type of business. If your business is not listed, select General Business Information.

Business License
Most local governments require a business license. If your business will be located in an incorporated city, you would obtain this from the city. If your business will be located in an unincorporated area, you would obtain this from the county.

Zoning
Whether you will be a home-based business or will occupy commercial space, consult your local planning department to be sure your business activities are permitted. If your business will be located in an unincorporated area, you would obtain this from the county.

Fictitious Business Name
A Fictitious Business Name or Doing Business As (DBA) statement is required when:

the business name does not include the surname of the individual owner(s) and each of the partners
the business name suggests the existence of additional owners
or the nature of the business is not clearly evident by the name of the business.

You can find the appropriate contact information for each of the above local requirements on CalGOLD.

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