Jacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Written By Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Jacqueline Nguyen, Esq. Small Business and Tax Expert WriterJacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provid.
Small Business and Tax Expert Writer Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Managing Editor, SMBUpdated: Feb 13, 2024, 12:22am
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Learn how to get a California business license by following our simple guide. We’ll walk you through the process and important considerations. No matter what you’re selling, the government has rules for how your business operates. Getting a business license is a key part of becoming “official” in the eyes of the state. Here’s everything you need to know.
While California does not require or issue a statewide business operating license, this doesn’t mean you do not need to have a business license to operate your business in the state of California. Instead, most business licensing is controlled at the county or city level, while the only statewide licensing is the “seller’s permit.” While there may be a few exceptions, as a general rule you will need a business license to operate in California.
In most California counties and cities, businesses must obtain a business license for tax purposes. Exceptions to this rule are most commonly found in some unincorporated areas of rural counties. In addition to the local business operating license, you may also need other licenses or permits depending on the type of activity your business is conducting or the location where you are operating.
For example, if your business is based in multiple cities or counties, you will need to establish a business license at your primary location and then obtain any additional business licenses in the other cities and counties you do business in.
Virtually all businesses will need at least one type of license or permit to legally operate in the state of California. Unfortunately, knowing exactly which license you may need to operate in your region and your specific industry can be a headache. Depending on the kind of business you operate, you might need to obtain local, county, state or federal business licenses. Luckily, California makes this a bit easier through the CalGold website, a tool that enables you to search by city or county and business type to see which permits you will need and which regulatory agencies administer them.
The most basic type of business license you will need is a business operating license, which is often simply called a “business license” or “general license” and usually also includes a business tax certificate. These are the most common licenses and will apply to essentially all types of businesses and will be nearly identical in all cities and counties across California.
A Fictitious Business Name (FBN) or Doing Business As (DBA) statement may be required, or desired, for your business if the name you are doing business as does not match the name you registered the business with the Secretary of State.
A public health operating license is required of businesses such as restaurants, coffee shops, fitness facilities or any other businesses that are related to people’s health. Chefs, cooks, baristas and servers will also be required to obtain a food handlers certification to work in the food industry. These permits often require some form of training and/or testing.
A pesticide applicator’s license will more than likely be required for any agricultural operation using any type of pesticide and may require some study and passage of a test to obtain.
Additional permits you may be required to obtain on a city or county level when starting your business in California include:
While these permits are not the same as business licenses, you should research to see if you must obtain one before starting your business.
In California, some business licenses are regulated on a statewide level instead of on a localized level. The most common one is a sales and use permit, often called a seller’s permit. Businesses selling or leasing any tangible property must obtain a seller’s permit before the first sale is completed.
If your business sells, manufactures, imports or distributes alcoholic beverages, you must apply for the appropriate license(s) with the California Department of Alcoholic Beverage Control, and register to pay an Alcoholic Beverage Tax with the Department of Tax and Fee Administration.
A number of other California state licenses may be required for operating your business. If you’re not sure, you should conduct additional research using the CalGold permitting website.
Most small businesses will not need to obtain any federal licenses or permits but, depending on the size or activities that your business conducts, you may need to get a federal license. Common business areas where you will likely need federal business licenses include:
