California · Start a business
How to start a business in California
California leaves business licenses to the city or county and fictitious business names to the county clerk.
See the checklistShort answer
To start a business in California, pick a structure and file with the Secretary of State: $70 for an LLC, $100 for a corporation's articles. Then name a registered agent, get an EIN and register for state taxes.
Last checked .What do you file before you open in California?
Pick a structure
Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See California LLC guide, California corporation guide, S corp or C corp in California. By trade: cleaning business, handyman.
Check and register the name
Search the Secretary of State records before you pick a name: state name search. California requires a fictitious business name statement to be filed with the clerk in the county of the registrant's principal place of business within 40 days of starting to operate. 1 See California name search guide.
File with the state
California charges the state filing fee once: an LLC costs $70 2 and a corporation's articles of incorporation cost $100 3. See LLC cost.
Name a registered agent
The articles must name a California agent for service of process with a street address, and a P.O. box is not accepted. 4 Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See California registered agent rules.
Which accounts do you open after you file in California?
Get an EIN
An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. 5
Open your state tax accounts
New sellers register with the California Department of Tax and Fee Administration on its website by choosing Register Online under Register for a Permit, then Register a New Business Activity. 6 See Sales tax permit.
Register as an employer
A California business registers as an employer with the Employment Development Department within 15 days once it hires employees and pays more than $100 in wages in a calendar quarter. 7 California employers report each new or rehired employee to the Employment Development Department's New Employee Registry within 20 calendar days of the employee's start-of-work date. 8 The Department of Industrial Relations says all California employers must provide workers' compensation benefits under Labor Code Section 3700, which applies to any business with one or more employees. 9
What keeps your California business in good standing?
Check licenses and permits
Most California local governments require a business license, which the city issues for a business in an incorporated city and the county issues for a business in an unincorporated area. 10
Calendar the yearly filings
California annual LLC tax (Franchise Tax Board): $800, due April 15 every year. 11 See California annual report.
Use free local help
Small business advising in California runs through the California SBDC. 12 CalGold, a state permit assistance tool, helps a business find permit information for its city or county and lists the agencies that issue those permits. 13
What it costs to start a business in California
Do you need a business license in California?
It depends on the trade and the place. The U.S. Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that requirements and fees depend on the business activity and the issuing agency. 16 California's own rule is in step 8. 10 Where to look up licenses: CalGold permit tool.
- Seller's permit security deposit. The California Department of Tax and Fee Administration charges nothing for a seller's permit, but may ask for a security deposit depending on the type of business and its expected taxable sales. 15
How to register a business name in California
| Question | California |
|---|---|
| Where it is filed | With the county 1 |
| Office | county clerk |
| What it is called | fictitious business name statement |
Check that the name is free first: state name search.
Also in California
- State Disability Insurance withholding. The California Employment Development Department sets the State Disability Insurance withholding rate at 1.4 percent for 2027, and all wages are subject to the contributions. 17
More for California
Start your California business
We file it, and the state fee shows before you pay.
Start my LLCCommon questions
What are the steps to start a business in California?
Pick a structure, file with the Secretary of State, name a registered agent, get an EIN, register for state taxes with the California Department of Tax and Fee Administration, then handle hiring, licenses, yearly filings and local help.
What does it cost to register a business in California?
In California, an LLC filing is $70 and a corporation's articles of incorporation are $100. The annual LLC tax is $800 each year.
Can I start a business in California with no money?
California charges $70 to file an LLC, and the annual LLC tax is $800 each year. An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. California SBDC runs 56 Small Business Development Centers across 58 counties and says its services, including advising, training and capital assistance, are no-cost.
Are there small business grants in California?
The California Office of the Small Business Advocate says it has no active direct-to-business grant programs at this time and points owners to its newsletter for new funding opportunities.
What is the California SBDC?
California SBDC runs 56 Small Business Development Centers across 58 counties and says its services, including advising, training and capital assistance, are no-cost.
Sources 18 links, checked Nov 12, 2026
- DBA or trade name registration calosba.ca.gov, checked Nov 12, 2026
- Official state fee schedule for LLC filings bpd.cdn.sos.ca.gov, checked Oct 17, 2026
- Corporation filing sos.ca.gov, checked Nov 7, 2026
- Registered agent rule bpd.cdn.sos.ca.gov, checked Nov 7, 2026
- IRS: employer identification number irs.gov, checked Nov 12, 2026
- State tax registration cdtfa.ca.gov, checked Nov 12, 2026
- Unemployment insurance registration edd.ca.gov, checked Nov 12, 2026
- New hire reporting edd.ca.gov, checked Nov 12, 2026
- Workers' compensation coverage dir.ca.gov, checked Nov 12, 2026
- General business license calosba.ca.gov, checked Nov 12, 2026
- California annual LLC tax (Franchise Tax Board) ftb.ca.gov, checked Oct 4, 2026
- Small Business Development Center californiasbdc.org, checked Nov 12, 2026
- State business portal calgold.ca.gov, checked Nov 12, 2026
- US Census Bureau, Business Formation Statistics (monthly file, 2025 added up) census.gov, checked Nov 12, 2026
- Seller's permit security deposit cdtfa.ca.gov, checked Nov 12, 2026
- SBA: licenses and permits sba.gov, checked Nov 12, 2026
- State Disability Insurance withholding edd.ca.gov, checked Nov 12, 2026
- State small business funding calosba.ca.gov, checked Nov 12, 2026
Last verified Nov 12, 2026.
This page explains the rules; it is not legal or tax advice.