---
title: What legal steps do I need to take if I want to start a small business in California?
description: Looking to start a small business in California? Legal Faqs has got you covered with the necessary legal steps you need to take. From filing for a business license to registering your business entity, learn the ins and outs of launching your dream business in the Golden State.
image: https://www.legalfaq.ai/hubfs/LegalFAQ/california-legal-FAQs.jpg
---

[Skip to content](https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california#main-content)

[LegalFAQ.ai](https://www.legalfaq.ai/)

- [Home](https://www.legalfaq.ai)
- [Blog](https://www.legalfaq.ai/blog)
- [FAQ Library](https://www.legalfaq.ai/faqs/all)

Open main navigation

Close main navigation

- [Home](https://www.legalfaq.ai)
- [Blog](https://www.legalfaq.ai/blog)
- [FAQ Library](https://www.legalfaq.ai/faqs/all)
- [Ask a question](https://www.legalfaq.ai/ask)

[Ask a question](https://www.legalfaq.ai/ask)

[All posts](https://www.legalfaq.ai/faqs/all)

 March 25, 2023

# What legal steps do I need to take if I want to start a small business in California?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

If you want to start a small business in California, there are several legal steps you need to take to ensure that you are complying with state laws and regulations. These steps include:

1. Choose a business name and file a fictitious business name statement (also known as a DBA statement) with the county clerk's office where your business will be located if you plan on doing business under a name other than your own.
2. Register your business entity with the California Secretary of State (SOS) if you plan on operating as a corporation, limited liability company (LLC), or limited partnership (LP). You can visit the SOS website or contact a licensed attorney for more information on choosing and registering your business entity.
3. Obtain any required business licenses and permits that are specific to your industry and location. You can check with your local city or county government to determine which licenses and permits you need. Depending on the type of business you plan to operate, you may also need to obtain a seller's permit from the California Department of Tax and Fee Administration (CDTFA) in order to collect and remit sales tax.
4. Apply for an employer identification number (EIN) from the Internal Revenue Service (IRS) if you plan on hiring employees or opening a bank account for your business. You can obtain an EIN for free online at the IRS website.
5. Purchase workers' compensation insurance if you will have employees working for your business. California law requires most employers to carry workers' compensation insurance to cover the costs of medical treatment and lost wages in the event of a work-related injury or illness.
6. Create a business plan and set up a bookkeeping system to keep track of your financial records. This includes opening a separate bank account for your business, obtaining business insurance if necessary, and obtaining any necessary financing.

It is important to note that there may be additional legal requirements that apply to your specific business depending on factors such as your industry, location, and the size of your business. It is therefore advisable to consult with an experienced business attorney to ensure that you are complying with all applicable laws and regulations.

In summary, starting a business in California requires careful planning and compliance with state laws and regulations. By taking the necessary legal steps outlined above, you can help ensure that your business operates smoothly and successfully.

Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california) [twitter icon](https://twitter.com/intent/tweet?url=https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california) [envelope icon](mailto:?body=https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california)

## Related posts

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/illinois-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-new-business-in-illinois)

[Illinois](https://www.legalfaq.ai/faqs/tag/illinois)

### [What legal steps do I need to take if I want to start a new business in Illinois?](https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-new-business-in-illinois)

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/florida-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-legal-precautions-should-i-take-when-starting-a-small-business-in-florida)

[Florida](https://www.legalfaq.ai/faqs/tag/florida)

### [What legal precautions should I take when starting a small business in Florida?](https://www.legalfaq.ai/faqs/what-legal-precautions-should-i-take-when-starting-a-small-business-in-florida)

[![](https://www.legalfaq.ai/hubfs/LegalFAQ/ohio-legal-faqs.jpg)](https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-to-start-a-small-business-in-ohio-1680264731974)

[Ohio](https://www.legalfaq.ai/faqs/tag/ohio)

### [What legal steps do I need to take to start a small business in Ohio?](https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-to-start-a-small-business-in-ohio-1680264731974)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Chris Battis",
    "url" : "https://www.legalfaq.ai/faqs/author/chris-battis"
  },
  "datePublished" : "1970-01-01T00:00:00.000Z",
  "headline" : "What legal steps do I need to take if I want to start a small business in California?",
  "image" : [ "https://www.legalfaq.ai/hubfs/LegalFAQ/california-legal-FAQs.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject"
    },
    "name" : "LegalFAQ.ai"
  }
}
```

```json
{
  "@context" : "http://schema.org",
  "@type" : "Article",
  "author" : {
    "@type" : "Person",
    "name" : [ "Chris Battis" ],
    "url" : "https://www.legalfaq.ai/faqs/author/chris-battis"
  },
  "datePublished" : "1970-01-01T00:00:00+0000",
  "description" : "Looking to start a small business in California? Legal Faqs has got you covered with the necessary legal steps you need to take. From filing for a business license to registering your business entity, learn the ins and outs of launching your dream business in the Golden State.",
  "headline" : "What legal steps do I need to take if I want to start a small business in California?",
  "image" : "https://www.legalfaq.ai/hubfs/LegalFAQ/california-legal-FAQs.jpg",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : ""
    },
    "name" : "LegalFAQ.ai"
  },
  "url" : "https://www.legalfaq.ai/faqs/what-legal-steps-do-i-need-to-take-if-i-want-to-start-a-small-business-in-california"
}
```