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What are the steps to starting a small business in California, and what legal requirements do I need to meet?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can provide guidance on the steps to starting a small business in California and the legal requirements you need to meet. Here is a breakdown of the steps and requirements:

  1. Choose a business structure: You will need to choose a business structure that is appropriate for your business. There are four main types of business structures in California, which include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has different legal requirements and tax implications.
  2. Choose a business name: You will need to choose a name for your business that is not already in use by another business in California. You can check the availability of your business name with the California Secretary of State.
  3. Register your business: Depending on your business structure, you may need to register your business with the California Secretary of State, Franchise Tax Board, Employment Development Department, and/or the Board of Equalization.
  4. Obtain business licenses and permits: Depending on the type of business you are starting, you may need to obtain business licenses and permits from state and local government agencies.
  5. Obtain a Tax Identification Number: If you have employees or if you are a LLC or corporation, you will need to obtain a Tax Identification Number from the Internal Revenue Service (IRS).
  6. Open a business bank account: It is recommended that you open a separate bank account for your business to keep your personal and business finances separate.
  7. Obtain business insurance: Depending on your business, you may need to obtain business insurance to protect yourself and your business from liability.

In summary, the legal requirements for starting a small business in California include choosing a business structure, choosing a business name, registering your business, obtaining business licenses and permits, obtaining a Tax Identification Number, opening a business bank account, and obtaining business insurance. It is important to note that this is a general overview and that there may be additional legal requirements and exceptions depending on your specific business. It is always advisable to consult with a licensed attorney to ensure compliance with all applicable laws and regulations.