If your business is primarily based in California, then you need to apply for a business license to continue operating it. Depending on what type of business you’re running, it may not be immediately clear to you which licenses you need.
In this article, we’re going to look at the California business license application process. We’ll also cover some other things such as the cost of the license, whether or not you need it as a freelancer, and how you can renew it.
California Business License Application
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How Do I Get a Business License in California?
Once you’ve established your business, it’s time to learn how to get a business license in California. Then, you can continue running it without ending up in legal trouble.
The very first thing you need is a general license which also includes a business tax certificate. Note that there’s no state-wide licensing required in California, which means you’ll get the general license from the city or county where your business is based.
Go to your city or county’s website and apply for the license, which may be referred to as a business tax registration certificate. This should be easy to obtain since the process is online. How long it takes to get a business license in California depends on several factors, but generally speaking, you should receive it within 45 days.
Next, you need to see if there are any other licenses your business needs. Different businesses require different licenses. If you have an LLC in California, then you may need different permits compared to someone who has a freelance business. That’s why we recommend consulting CalGold to see which licenses you need.
Select your city or county and then enter your business type. Note that an FBN or DBA is only required if the name of your business doesn’t include your last name in it.
When applying for city or county-level licenses, you’ll be asked to provide some details about your business. These details include a description of what it is, number of employees, address, and industry code.
Once you have all your local city/county level permits and licenses, you need to apply for a seller’s permit if your business is selling anything. You can get this from the California Department of Tax and Fee Administration (CDTFA).
Finally, depending on the industry your business is operating in, you may be required to apply for federal permits and licenses. Some of these industries include alcoholic beverages, firearms, aviation, nuclear energy, and agriculture.
How Much Does It Cost to Start a Business in CA?
If you’re a small business in California, expect to pay a flat fee of anywhere between $15 to $300 for your business license.
Calfornia Business License Renewal
Once you have your business license, you’ll need to think about renewal – unfortunately, they don’t last forever!
In California, business license renewal is done on a yearly basis, but this may vary depending on your county, city, or the licensing agency. It’s best to contact the agency and ask them about their renewal timeline.
Do Freelancers Need a Business License in California?
Freelancers in California are generally not required to obtain any license if they’re a sole proprietor. However, if you decide to switch to an LLC or an S Corp, then you’ll need a business license, an FBN/DBA, and a seller’s permit in addition to any business-specific licenses or permits.
As mentioned above, it’s best to check the CalGold site to see if you need a business license in California.
Get Your Business License in California
Now that you know what the process is like, you’re ready to apply for all the licenses and permits you need to run a business in California. Just make sure you check the CalGold website to see a complete list of the licenses you need for your specific business type.
California doesn’t have a state-wide license, but no matter what type of business you run, you’ll need a business tax certificate and a seller’s permit. You’ll also need a business license if you’re running a freelance business as an LLC or an S Corp.