Starting a Business in California

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Business Entity Formation

Business entities are formed by registration with the California Secretary of State.

Limited Liability Company

Filing a Domestic LLC (for profit company, first registered in California) is a $70 initial filing fee, $20 annual fee, and may not be submitted online. Expedited service is available for an additional fee. Turnaround is 10-20 business days with standard processing. Turnaround is 3-7 business days when expedited. Annual report may be filed online. A Statement of Information (along with the annual fee) is due within 90 days of filing its Articles of Incorporation and annually thereafter.

Filing a Foreign LLC (for profit company, first registered elsewhere) is a $70 initial filing fee, $20 annual fee, and may not be submitted online. Expedited service is available for an additional fee. Turnaround is 10-20 business days with standard processing. Turnaround is 3-7 business days when expedited.Annual report may be filed online. A Statement of Information (along with the annual fee) is due within 90 days of filing its Articles of Incorporation and annually thereafter.

Corporation

Filing a Domestic Corporation (for profit company, first registered in California) is a $100 initial filing fee, $25 annual fee, and may not be submitted online. Expedited service is available for an additional fee. Annual report may be filed online. A Statement of Information (along with the annual fee) is due within 90 days of filing its Articles of Incorporation and annually thereafter.

Filing a Foreign Corporation (for profit company, first registered elsewhere) is a $100 initial filing fee, $25 annual fee, and may not be submitted online. Expedited service is available for an additional fee. Turnaround is 10-20 business days with standard processing. Turnaround is 3-7 business days when expedited.Annual report may be filed online. A Statement of Information (along with the annual fee) is due within 90 days of filing its Articles of Incorporation and annually thereafter.

Sole Proprietor

A sole proprietor business does not require registration with the state.

DBA (Doing Business As) or Fictitious Business Name

California allows individuals and businesses to register a fictitious business name. This process is administered at the County level.

Licenses

Businesses are typically licensed at the city or county level. Use this website to determine the correct location to apply for your California business permit based on your business type and your location.

There are a number of professions that require a state license in California. For more information on professional licenses, visit this website. This website provides a portal to the sites for individual occupations.

Income & Sales Tax

California does have a state income tax for individuals. California does have a state income tax for corporations. Visit this website for more information on business income taxes in California.

California does have a franchise tax for corporations. Visit this website for information on franchise taxes.

California does have a state sales tax. Visit this website for more information on sales taxes in California. Apply for an California sales tax permit here. This application is filed by mail. There is no application fee.

Employer Assistance

The state of California administers labor and employment issues through the California Department of Industrial Relations.

Unemployment Insurance

Unemployment insurance information for employers in California is available at this website. Generally, a business becomes subject to State payroll taxes upon paying wages over $100 in a calendar quarter to one or more employees. Wages consist of compensation for services performed, including cash payments, commissions, bonuses, and the reasonable cash value of noncash payments (like meals and lodging) for services. Once subject, an employer must complete and submit a registration form to EDD within 15 days.

Unemployment insurance information for workers in California is available at this location.

Workers' Compensation

Information for employers in California regarding Worker's Compensation is available from the Division of Worker's Compensation website. California employers are required by law to have workers' compensation insurance, even if they have only one employee. And, if your employees get hurt or sick because of work, you are required to pay for workers' compensation benefits. Workers' comp insurance provides six basic benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits or vocational rehabilitation and death benefits.

Occupational Health & Safety

California provides Occupational Health & Safety support through Division of Occupational Safety & Health. Visit their website. The Division of Occupational Safety and Health, better known as Cal/OSHA, protects workers and the public from safety hazards through its Cal/OSHA, elevator, amusement ride, aerial tramway, ski lift and pressure vessel programs, and provides consultative assistance to employers.

Resources for Starting a Business in California