How to Get a Business License in California (2026)

California has no general state business license. The Secretary of State registers business entities such as LLCs and corporations, but it issues no licenses or permits. The CDTFA seller's permit is not a business license either. When people ask about a “California business license,” they usually mean the local business tax registration certificate issued by the city where the business operates. Most businesses also need state registrations or activity-specific licenses. This guide explains the three layers and how to get each one.

This is informational content, not legal or tax advice. Requirements, fees and deadlines change, so confirm current figures with the agency named in each section. For complex situations, consult a qualified attorney or CPA.

The three layers of business registration

1. Entity and name registration with the Secretary of State (for LLCs, corporations, LPs and LLPs), plus a fictitious business name filing with a county clerk if you operate under a name other than your legal name.
2. Local registration with your city, or with your county if you are in an unincorporated area. This is the business tax registration certificate most people call a business license.
3. Activity-specific licenses and permits from state agencies and boards, such as a CDTFA seller's permit for taxable sales, an EDD employer account for payroll, or a CSLB contractor license.

Layer 1: Register your entity and name

To form an LLC, file Articles of Organization (Form LLC-1) with the Secretary of State for a $70 filing fee. Stock corporation articles cost $100, and nonprofit articles cost $30. You can file through bizfile Online. A name reservation costs $10 and holds the name for 60 days, and it cannot be renewed for consecutive periods. An LLC name must include “limited liability company,” “L.L.C.” or “LLC” (or the accepted abbreviations), and it cannot include words such as “bank,” “trust,” “incorporated,” “inc.,” “corporation” or “corp.” Our California LLC formation guide walks through the filing.

An LLC or corporation must keep an agent for service of process in California. That agent must be a California resident or a corporation holding a Corporations Code 1505 certificate. An LLC must also keep an office in California, which does not have to be a place of business activity.

Ongoing filings matter as much as the initial one:

• LLC Statement of Information (Form LLC-12): $20, due within 90 days of filing the articles, then every two years during the six-month window ending on the last day of the anniversary month. If it is missed, the FTB assesses a $250 penalty after a Secretary of State notice.
• Corporation Statement of Information (Form SI-550): $25, due within 90 days of filing the articles, then every year.
• LLC franchise tax: Every LLC organized or registered in California from 2024 through 2026 owes the $800 minimum annual franchise tax from its first year. An LLC whose first taxable year begins in 2027, 2028 or 2029 pays $400 in year one under RTC 17941(g)(2), so confirm that amount with the Franchise Tax Board.
• LLC fee: On top of the franchise tax, the LLC fee is $900 once California-source total income reaches $250,000, $2,500 at $500,000, $6,000 at $1,000,000 and $11,790 at $5,000,000.

A newly incorporated or qualified corporation or S corporation owes no $800 minimum tax in its first taxable year. California also does not allow a domestic series LLC, and an LLC cannot render a licensed professional service. Professional corporations are used for that purpose.

Fictitious business names

If you do business under a name other than the one on your entity papers, file a Fictitious Business Name Statement with the county clerk-recorder in the county of your principal place of business. If you have no place of business in California, file in Sacramento County. File within 40 days of starting to use the name. You must also publish the statement in a newspaper once a week for four weeks, and that publication fee is separate. The statutory filing fee is $10 plus $2 for each additional name or owner, but counties charge more. Tehama County, for example, charges $31 plus $5 for each additional name. A fictitious business name expires after five years. The Secretary of State's fictitious business name page lists the rules.

Layer 2: The local business tax registration

Cities license businesses “for revenue and regulation” under Government Code 37101(a). The tax or fee must fairly reflect the activity carried on in the city (37101(b)), and a gross receipts or income tax cannot be applied to tax-exempt nonprofits (37101(c)).

According to State Controller data for fiscal year 2025 (our calculation), 445 of California's 483 cities report business tax revenue, and 38 report none. Most cities charge something, but there is no common formula. The method depends on the city:

• Gross receipts by class: Los Angeles, Oakland, Berkeley and Santa Monica.
• Per employee: San Jose, Long Beach, San Diego and Irvine.
• Flat fees by category: Chula Vista, Anaheim and Huntington Beach.
• Square footage: Palo Alto, under the Measure K tax.
• Registration fee plus gross receipts tax: San Francisco. The gross receipts tax does not apply to businesses with up to $5,000,000 in San Francisco receipts, effective January 1, 2025. Check the San Francisco Treasurer for current rules.

Some examples show how much the answer varies. Los Angeles exempts a business whose worldwide gross receipts are $100,000 or less, as long as it registers and renews on time. San Diego charges $34 for businesses with 12 or fewer employees and $125 plus $5 per employee for larger ones, but check the Treasurer's current table before you budget. Glendale reports no business tax revenue, so ask the city whether any registration or fee applies.

Every local license or renewal also carries a $4 state fee under Government Code 4467. Renewal dates differ by city, so put each one on your calendar when you register. A business that works in several cities may need a registration in each, and contractors working outside their home city should check every city's rules. Our city-by-city guides cover the local rules in more detail.

Counties license only regulated activities

Counties do not issue a general business license. They license only regulated activities. Los Angeles County's license is regulatory and covers about 110 activities. San Diego County says no general license is needed in its unincorporated areas, but confirm the rule for your county. If your address is outside city limits, read our county-by-county guide for unincorporated areas.

Home-based and online businesses

Whether a home-based or online business needs a local registration depends on the city, so ask the city directly. San Diego's Treasurer says its certificate covers home-based and independent businesses. Zoning approvals, such as a home occupation permit, are a separate requirement. Our home-based business guide covers zoning, permits and taxes. Family day care homes cannot be charged any local business license, fee or tax under Health and Safety Code 1597.45.

Layer 3: State registrations and activity licenses

Your business activity determines which state registrations apply. The most common ones are:

• CDTFA seller's permit: Required if you sell taxable goods. The permit is free. The statewide base sales tax rate is 7.25%, and with district taxes, city rates run from 7.25% to 11.75%. A resale certificate has no required form. Read our resale certificate guide and the CDTFA sales and use tax page.
• EDD employer account: Required once you have employees. Register within 15 days of paying more than $100 in wages in a quarter. See our EDD employer registration guide.
• Contractor license (CSLB): Required for a single project with $1,000 or more in labor, materials and other items, for any project that needs a building permit, and always if you advertise as a contractor or employ others (Business and Professions Code 7048). Contractors also need a $25,000 contractor bond (Business and Professions Code 7071.6). See our CSLB license guide.
• Professional licenses: Regulated professions are licensed by Department of Consumer Affairs boards.
• Food businesses: County environmental health permits apply to most food businesses. Home cooks should review our cottage food guide first.
• Alcohol: The Department of Alcoholic Beverage Control (ABC) licenses alcohol sales.
• Cannabis: The Department of Cannabis Control licenses cannabis activity, and local approval is also required.
• Child care: The Department of Social Services licenses child care providers.

To find the permits for your business type and location, use CalGOLD, run by the Governor's Office of Business and Economic Development (GO-Biz). CalGOLD lists permits by business type and location, and it is a good starting point when you are not sure what applies.

How to apply, step by step

1. Confirm your location. Find out whether your address is inside a city or in an unincorporated part of a county.
2. Register your entity and name. File Articles of Organization or Incorporation with the Secretary of State if you are forming an entity, and file a fictitious business name statement if you need one.
3. Check the city's classification. Find out whether the city charges a business tax, how it calculates it and which form to use.
4. Apply. Apply through the city's finance or business tax office, which is usually online.
5. Pay the fee. Add the $4 state fee that applies to local licenses.
6. Add state and activity registrations. Use CalGOLD and the agencies above to identify the CDTFA, EDD, CSLB or other registrations your business needs.
7. Renew on time. Local renewal dates vary by city, and late renewals can cost you an exemption or trigger penalties.

Where to confirm the details

Start with the official sources. The Secretary of State's Business Programs Division handles entity filings, the CDTFA handles sales tax and seller's permits, and the California Small Business Development Center network offers free or low-cost help with registration questions. Your city's business tax office is the final authority on local requirements.

This guide is informational content, not legal or tax advice. Fees, thresholds and deadlines can change, and the right structure and registrations depend on your facts. Consult a qualified attorney or CPA before you make decisions about entity structure, taxes or licensing.