Do California Businesses Need a License?

Doing business in California requires more than just a great idea and hard work - it also requires the right licenses and permits. Learn what type of license or permit you need for your successful business venture.

Do California Businesses Need a License?

Doing business in California requires more than just a great idea and a bit of hard work. It also requires the right licenses and permits. This is true for small businesses, home-based businesses, and businesses that don't make a lot of money. Obtaining the right licenses and permits allows you to adjust how taxes are taxed on the money you make with your business and protects your personal assets, such as your home and investments, from business liabilities, such as lawsuits and debts.

In California, most businesses need to obtain a business license at the county or city level for tax purposes. Some businesses need to obtain special licenses and permits from the state, but most only need a general business license from their local county and perhaps their city. However, if the federal government regulates your business activities, you must apply for and obtain appropriate federal business licenses and permits. For example, the City of San Diego requires a business tax certificate for businesses operating within city limits.

An LLC and a business license are not the same thing, although both are often part of creating a new business in a state. CalGold is the best place to find information about the business licenses required by your type of business, as well as links to issuing agencies.Before you can apply for licenses on behalf of your company, you must create your company in the state of California. That means you don't need to have a license from the State of California just to run your business in the state. If your company carries out activities regulated by the federal government, you will need to apply for the appropriate license or business permit.

Your company in California may also need a state license that covers specific industries or professions.You can obtain a business license online by applying to the right regulatory or licensing agency for your company. State business licenses are government documents that prove that a company has applied for and received permission to trade within its state. Typically, you pay a fee to get a local business license in California, but some cities exempt very small businesses from paying fees.In addition, businesses that purchase merchandise for resale will generally want to obtain a California resale certificate to avoid paying sales tax on merchandise that is resold to customers.The Golden Bear State is home to many entrepreneurs who must figure out how to get a small business license in California. Knowing what type of license or permit you need is essential for any successful business venture in California.