Doing business in California requires entrepreneurs to obtain the necessary permits and licenses. Depending on the type of business, there may be federal, state, regional and local requirements. This article provides an overview of the most common permits and licenses needed to operate a small business in the Golden Bear State. The first step is to obtain a California business license from the city.
This license will come with a number that must be used for tax purposes. Additionally, businesses that purchase merchandise for resale should obtain a California resale certificate to avoid paying sales tax on items that are resold to customers. Businesses that are related to people's health, such as restaurants, coffee shops, and gyms, will need to obtain a public health operating license. Additionally, businesses may need to get a seller permit if they intend to sell or lease tangible personal property that would be subject to sales tax if sold at retail.
Veteran-owned businesses may be eligible for assistance programs from the Small Business Administration (SBA) and the Office of Business Development for Veterans. Jacqueline Nguyen, a Florida lawyer who specializes in business and tax laws, advises entrepreneurs to research any exceptions that may apply to their business before starting operations. She also recommends obtaining titles that can help build a career, increase earning potential, and grow the business. Finally, it is important to note that every city in California can charge fees for any business located in its jurisdiction as a tax collection mechanism and also as a way to track economic development statistics.
