California does not necessarily require that all companies (of any structure) obtain a license. While the state does not issue or require a commercial operating license, it regulates and requires licenses or permits for some business activities. Most businesses will need some form of California business license. Most counties and cities in California require businesses to have a local license, and many businesses will need a seller's permit.
While there may be some exceptions, as a general rule, you will need a business license to operate in California. The inclusion of links to other websites does not constitute an approval of those sites by the Secretary of State of California, the State of California, or the federal government. San José: Within 90 days of starting, all businesses operating within city limits must obtain a business tax certificate from the City of San José. Fortunately, California makes it a little easier through the CalGold website, a tool that allows you to search by city or county and type of business to see what permits you will need and which regulatory agencies administer them.
For help deciding the location of your business, contact the California Business Investment Services unit of the Governor's Office of Economic Development (Go-Biz). Small Business Administration (SBA), Veteran-Owned Businesses Veteran Assistance Programs Office of Business Development for Veterans. San Diego: The City of San Diego requires a business tax certificate for businesses operating within city limits. The cost of a standard commercial operating license can vary by location in the state of California, and some cities even exempt small businesses from paying any fees.
Each agency in California handles business licenses differently, but most require that licenses be renewed annually or biennially. In California, most businesses need to obtain a business license at the county or city level for tax purposes. If your company carries out activities regulated by the federal government, you will need to apply for the appropriate license or business permit. According to the California Tax Service Center, the LLC's annual fee is considered an ordinary and necessary deductible business expense and, as such, can be deducted from your tax bill.
In addition to the local business operating license, you may also need other licenses or permits depending on the type of activity your company is carrying out or the location in which you are operating. Small businesses represent 99.8% of all businesses within the state and employ 48.8% of the state's workforce, making them a vital part of the Golden State economy. You can run a business as a sole proprietor (only you) or general partnership (you and one or more partners) rather than forming a business entity such as an LLC or a corporation. No matter what type of business you create, you should consider opening a separate business account to make it easier to track your income and expenses.