If you’re running a business in the state of California, then you’re legally required to get a business license. There’s no state-wide license, so you have to apply to the city or county where your business is based for a general business license (or a business tax certificate).
Here’s a list of businesses that need a license in California:
● Sole proprietorship
● Limited liability company (LLC)
● Partnership
● Corporation
● Non-profit organizations
In this article, we’re going to explain the licensing requirements for the businesses mentioned above. We’ll also share some insights into how much a business license can cost and whether you need it if you’re an independent contractor or an online seller.
Do I Need a Business License in California
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What Businesses Need a Business License in California?
Any business in California must have a license. The Business License Requirements in California apply to sole proprietors, LLCs, corporations, and partnerships. Even tax-exempt organizations, like non-profits, need a business license to operate legally in the state.
The specific licenses and permits required vary depending on which industry your business is in. For example, if you want to start an LLC in California in the food industry, other than a business tax certificate, you’ll need a land use permit, environmental health permits, a health permit, and a seller’s permit.
You can check the CalGold site to see a complete list of all the licenses and permits your business needs.
Do I Have to Register My Business in CA?
Yes, if your business is based in California, then that’s where it must be registered. In most cities and counties, you should be able to complete the entire process online. Some documents and information that you have to submit as part of your application include:
- Social Security Number (for sole proprietorships)
- Federal Employment Identification Number (EIN) for corporations and LLCs
- A description of the business activities
- Address of your business
- Start date of your business
- Contact information of the people involved in the business
Depending on where your business is based in California, you may be asked to submit more information about the business.
How Long Does It Take to Get a Business License in California?
In most cities and counties, you can get a business license in California online. After completing the application, you should receive a temporary business license or business tax certificate almost immediately. You can print this copy and display it at your business.
The original copy of the license will be mailed to you in about 4 weeks.
How Much Does It Cost to Get a Business License in CA?
The exact cost of a business license in California depends on multiple factors. These include where your business is based in California, how much revenue it earns in a year, and the number of employees it has.
A business license in California typically costs between $50 and several hundred dollars. For large businesses, the cost may depend on the number of employees and annual revenue. Most licenses require annual renewal, though some counties offer 3-year licenses. Understanding the Business License Requirements in California helps ensure compliance and smooth operation.
Do Independent Contractors Need a Business License in California?
If you’re an independent contractor, then you are classified as self-employed. Whether you need a business license as an independent contractor depends on which city or county you’re in.
There’s no state-wide licensing requirement for self-employed individuals in California. Depending on the nature of your work, you may have to get a seller’s permit and a business tax certificate.
For example, if it’s just a one-time job, then you may not need a California business license or permit at all. However, if you’re regularly engaged in the work, then you’ll have to apply for a business license.
Do I Need a Business License to Sell Online in California?
As mentioned above, you won’t need any license if you sell something just once or twice a year. In California, you need a seller’s permit if you sell items more than 3 times in a year.
Does Your Business Need a Business License in California?
As you can tell by now, almost every business in California needs a business license. The exact number of permits and licenses required, however, depends on many different factors. We suggest consulting CalGold and checking your county/city’s official site to see what they have to say on the matter.