Skip to content
Ask a question
All posts

What are the legal requirements for starting a business in California?

Picture of Chris Battis By   ·  1 minute read

To start a business in California, there are several legal requirements that individuals must meet. Below are some of the essential requirements:

  1. Choose a Business Structure: Individuals must first decide which structure they want for their business. They can choose from a variety of options, such as a sole proprietorship, partnership, corporation, or LLC.
  2. Register Business Name: The name of the business should be registered with the California Secretary of State. A name search should be performed to ensure it is available.
  3. Obtain Business Licenses and Permits: Different types of businesses may require various types of licenses and permits. The California Governor’s Office of Business and Economic Development can guide them through the relevant licenses and permits they need for their business.
  4. Register for Taxes: It is necessary to obtain different tax identification numbers from the State of California, such as sales tax permit, Employer Identification Number, withholding account and tax registration.
  5. Comply with Employment Laws: Registering for a Business Tax Registration Certificate with the California Employment Development Department is necessary if registering for an Employee Identification Number (EIN).
  6. Workers Compensation Insurance: In California, all businesses with one or more employees must either carry workers’ compensation insurance policy or be approved for self-insurance.
  7. Comply with Environmental Regulations: if the business causes any potential harm to the environment, get an Environmental Protection Agency identification number.

It is essential that individuals conduct due diligence while registering their business. The requirements may vary according to the type of business or structure the individuals choose. It is recommended that they seek the assistance of an attorney to help them navigate through the legal process.

Moreover, they can visit the California Secretary of State website for more detail and download the registration form. Keeping legal documents and licenses renewed and updated is essential for starting and maintaining a business.