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1) Choose your business structure & name

  • Decide on a structure (sole prop, LLC, corporation, partnership). The Secretary of State (SOS) outlines pros/cons and obligations. California Secretary of State

  • Check California name availability and existing entities with the SOS search. California Secretary of State

  • (Optional) Screen a potential trademark at the USPTO before you invest in branding. USPTO

Where to read more / start: SOS “Starting a Business” and “bizfile” hub. California Secretary of State+1

2) Form/register your business with the California Secretary of State (SOS)

Pro tip (deadlines that cause penalties): After formation, you must file a Statement of Information (initial + periodic). LLCs file within 90 days of registration and then every 2 years; corporations file initial within 90 days and then annually/biennially depending on type. California Secretary of State+1

Get your federal EIN (free)

Apply for an EIN (Employer Identification Number) directly with the IRS—it’s instant and free. Avoid paid third-party sites. IRS

4) (If applicable) File a Fictitious Business Name (DBA) with your county

  • If you will operate under a name that doesn’t include your surname (sole prop) or differs from the entity’s exact legal name (LLC/Corp), file a Fictitious Business Name (FBN) with your county clerk—generally within 40 days of starting business. Some counties also require newspaper publication. LACounty Planning

  • County clerk examples (instructions/forms): Solano County; Orange County. (Use your own county.) Contra Costa County+1

5) Register for California tax accounts (as needed)

A) Sales & use tax (Seller’s Permit) — CDTFA

  • If you sell or lease tangible personal property at retail in CA (including pop-ups/temporary events), you must obtain a Seller’s Permit (it’s free) before selling. Apply online via CDTFA. CDTFA+1

  • CDTFA’s “Permits & Licenses” page explains common permits, temporary permits (≤90 days), printing your permit, and change/close-out steps. CDTFA+1

B) Payroll tax (if you’ll have employees) — EDD

  • New employers must register with the Employment Development Department (EDD) through e-Services for Business. The Employer’s Guide (DE 44) clarifies when you become an employer and your ongoing filing/payment duties. Employment Development Department+1

C) State income/franchise tax obligations — FTB

  • LLCs owe a yearly $800 annual tax (pay with FTB Form 3522) and may owe an LLC fee based on gross receipts; payment timing is on FTB’s site. A temporary first-year LLC exemption applied only to tax years beginning 2021–2023; it does not apply to new 2025 LLCs. Franchise Tax Board+2Franchise Tax Board+2

  • Corporations generally also owe a $800 minimum franchise tax (with a first-year exemption for many corporations). See FTB’s corporation page for details and due dates. Franchise Tax Board

6) Obtain your local business license (city/county)

There is no single state business license—you’ll almost always need to register locally where you operate.

  • Use CalGold (California’s official permit wizard) to identify your city/county licensing office and any additional permits. City of San Diego

  • Example (Los Angeles): most businesses must obtain a Business Tax Registration Certificate (BTRC) from the Office of Finance; you can apply online. Los Angeles Office of Finance

  • Example (San Diego): all businesses must register for a Business Tax Certificate within 15 days of starting to avoid late fees; instructions and online application are provided. City of San Diego+1

Tip: Your local license may be called a Business License, Business Tax Certificate, or Business Registration. The requirements and deadlines are local and enforceable—check your city’s treasury/finance or tax office page. CalGovBiz

Zoning, location, and specialty permits (don’t skip!)

Before opening, confirm your location is zoned for your activity and secure any home-occupation, signage, fire, health, or police permits. CalGold will list the agencies for your business and location. City of San Diego

8) Professional/industry licensing (if applicable)

Many occupations (contractors, cosmetology, auto repair, real estate, etc.) require state licenses. Use the Department of Consumer Affairs (DCA) BreEZe system to look up your board and licensing steps. (Contractors, for example, must be licensed by the CSLB.) California.Public.Law+1

9) Employer compliance: workers’ comp & postings

  • Most employers must carry workers’ compensation insurance; see the Department of Industrial Relations (DIR) and consult a broker. CalDIR

  • Post required labor law notices at the workplace (California + federal). DIR provides official postings information. CalDIR

10) Federal Beneficial Ownership (BOI) reporting (watch this)

  • In 2025, FinCEN issued an interim rule that removed BOI reporting for most U.S. companies and narrowed the rule to foreign reporting companies; the status has been fluid due to litigation/agency action. Always check FinCEN’s current guidance before assuming you must (or must not) file. FinCEN.gov+1

  • The IRS EIN page also links to FinCEN’s BOI overview so you can verify current obligations. IRS

11) After you’re licensed: ongoing filings & good standing

One-page checklist (save this)

  • Pick structure & check name (SOS search) → file entity online (bizfile). California Secretary of State

  • Get free EIN from IRS. IRS

  • File Fictitious Business Name (DBA) with your county (if needed; 40-day rule). LACounty Planning

  • Register tax accounts: CDTFA Seller’s Permit (if selling goods) and EDD (if employees). CDTFA+1

  • Obtain your local city/county business license/tax registration. (Use CalGold to find the right office.) City of San Diego

  • Confirm zoning & get any specialty permits (fire/health/police/signs). City of San Diego

  • Verify professional licenses (DCA/board; contractors via CSLB). California.Public.Law+1

  • Set up workers’ comp & required posters. CalDIR+1

  • Calendar SOS Statement of Information and FTB $800 (where applicable). California Secretary of State+1

  • Check FinCEN BOI status before filing. FinCEN.gov+1

Helpful official portals (bookmark these)

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