San Francisco Business License - howtostartabusinesscalifornia.com

Does California Require a Business License?

No, California does not require a business license. The only time the state will require a license is if you plan on operating in a specific industry that’s regulated by the state government. This may include the sale of marijuana, alcohol, medications, and other goods or services that are regulated by the government.

You can learn more about the types of business licenses that California requires and whether or not you need to apply for one here. That said, San Francisco does require a business license and requires licenses for several types of activities.

How Do I Find out if a Business Is Licensed in San Francisco?

There are several ways to check to see if a business has a license in California because it’s a public record. All you need is the name of the business and some time to search for the company on the Secretary of State’s website.

The database contains information about all of the companies that have a license in California and San Francisco. In fact, you can even check your own company to see if your renewals are outdated or if you’re missing anything.

San Francisco Business License: What You Need to Know

A business license in San Francisco is straightforward; it’s a legal document that permits you to operate a business in San Francisco. Whether you want to run an LLC or operate as a sole proprietorship, you’ll need a business license to do so. In a sense, you can think of it as a driver’s license but for your business.

While California doesn’t require you to have one by law, the state leaves it to jurisdictions like San Francisco to regulate business licenses. Therefore, there’s a good chance that you need one if you want to sell a good or service in San Francisco.

Who Needs a Business License in San Francisco?

Anyone who wants to do business in San Francisco needs a license. This applies to people who want to do business online, in a commercial building, or out of their homes. People need a license to do business because it’s how the county tracks your revenue and collects taxes.

Additionally, people might also require specialized licenses if they’re a professional. For example, these fields will need a unique license beyond a general license:

Tax accountants
Real estate brokers
Financial brokers
Insurance agents
Tradesmen
Doctors
Lawyer

These are only a few examples, and many fields may require specialized licenses.

How Much Does a San Francisco Business License Cost?

San Francisco business licenses cost a minimum of $56 and can cost as much as $44,006 for businesses making over 200 million dollars a year. This is a wide range but that’s because of how San Francisco handles their business license tax.

San Francisco bases the cost of its business license on the total gross receipts of a business. The total gross receipts refer to the amount of revenue a company has earned in that year. If it’s your first year you’ll need to provide an estimation.

Some of the most common business license costs according to income include:

$0-100,000: $56
$100,000.01-$250,000: $93
$250,000.01-$500,000: $157
$500,000.01-$750,000: $314
$750,000.01-$1,000,000: $439
$1,000,000.01-$1,500,000: $628

Depending on how much a company makes, the cost of a business license in San Francisco will continue to increase. It’s also important to note that these prices are for Schedule A businesses. Schedule B businesses have a lower price attached to them, so keep this in mind when you’re applying for a license and registering your business.

How to Get a San Francisco Business License Online

San Francisco is a great place to start a business. There is a lot of earning potential and plenty of places to establish your brand. Learn about the steps you can take to start a business and obtain your business license in San Francisco.

1. Start a Business in San Francisco

When you want to apply for a business license, it’s important to start a business first. You’ll need one before you submit your application, and all of your zoning information needs to be in order as well. To start a business, you need to complete the steps below:

Look for a business name and have it registered with the Secretary of State.
Acquire any necessary domains or online real estate that you need to secure.
Choose a legal entity: sole proprietorship, LLC, partnership, corporation, or DBA.
Get an EIN from the IRS or use your Social Security number if you’re opening as a DBA or sole proprietorship.
Create a business plan.
Open a business bank account.
Research zoning requirements and laws.
Obtain the necessary insurance for your business.
Stay up to date about local laws and regulations in San Francisco that apply to your business.

These steps are enough to help you get started, but some variables might change depending on the type of company you want to establish. This information is enough to help you get started, but you can learn more about how to start a business in San Francisco here.

2. Location and Zoning

Zoning laws are important and you have to understand how your business is zoned before you apply for your license. In fact, you’ll need to have this information before you apply for your license. You can obtain this information from the San Francisco Planning Department, which outlines where you can do business and if it’s possible.

If you plan on doing business online in San Francisco, it’s also important to consider the zoning for home-based businesses. While San Francisco makes it easy to do business from home, you need to consider these rules:

Clients can not go to your home property
Employees who don’t live at the home can not work in the home
No advertising can be displayed at the home
You can’t alter the appearance of your residence that makes it look more commercial or out of compliance with residential zoning laws
More than ⅓ of your home’s space can’t be used for business or commercial purposes

Once you have your zoning in order, it’s time to apply for your business license. Also, California has accessibility laws for businesses, so it’s important to ensure that your location is accessible to people with disabilities.

3. San Francisco Business License Requirements

The next thing to focus on is the requirements you need to meet to get your business license in San Francisco. These requirements include:

Registering a business account number
Your business location
The activities your business will do
Your fictitious business name if that’s something you plan on using; this also applies to DBA
Complete the business registration form or the renewal form if you need to renew your license
Comply with any health and safety codes
The start date of your business
Your driver’s license
Full name and contact information for you and your business

When you apply for your business license in San Francisco you’ll also need to pay your registration fee.

4. Additional Permits and Licenses

California doesn’t always require a license, but there are some state licenses that you need if you plan on selling a specific good or service. Some examples of these licenses and permits include:

Environmental permits can be obtained by the California Environmental Protection Agency
If you sell alcohol, you’ll need an Alcoholic Beverage License from the California Department of Alcoholic Beverage Control
Permits for agriculture from the California Department of Food and Agriculture

These are only some examples and you may need other specialized licenses if you plan on running something like a fishing boat or casino.

While state licenses are important, you’ll also need federal licenses for some industries. For example, if you plan on selling firearms you’ll need a federal license to do so, even in California.

5. Fill out Your San Francisco Business License Application

Now that you have all your documents and credentials together, it’s time to fill out your San Francisco business license application!

You’ll want to do this on San Francisco’s Treasurer and Tax Collector website, which can be found here. This website offers a video tutorial for filling out the application, which can answer any questions you have about this important document.

Once you submit your application and are approved, you’re all set!

6. San Francisco Business License Renewal

San Francisco requires you to renew your business license each year. Failing to do so will result in penalties and can cause your business to enter dangerous legal territory that can result in your license being revoked.

When it comes to renewing your license, you’ll have to renew it on the date that you started your business or applied for your license. Make sure you keep this in mind when it comes to renewing your license.

When you renew your business license you’ll need to provide the following information:

Gross receipts from the previous year
The types of business activities that your business partakes in
The number of employees you have per week on average
Your online PIN if you renew your business license online

It’s best to renew your business license early because there is a processing period. On average, it takes around three to five years.

Get Your San Francisco Business License Today!

When you’re planning on opening a new business in San Francisco, or if you plan on moving an existing business to the city, you’ll need a license. While there is a lot of information that you need to provide, most of it can be found online, and many of the forms are simple to fill out.

As long as you fill out the proper business license application in San Francisco, you shouldn’t have any issues following the instructions and providing the information that you need. So, don’t hesitate, and start the process today! It’s quick and easy, and the process is hassle-free.