How to Start a Moving Company in California: BHGS Household Mover Permit ($500), No DMV Motor Carrier Permit

If you want to start a moving company in California, the license that matters most is not the one many people expect. California regulates household movers under the Household Movers Act (Business and Professions Code 19225 and following), and the Bureau of Household Goods and Services (BHGS), part of the Department of Consumer Affairs, issues the permit. Since July 1, 2018, that permit has come from BHGS, not the California Public Utilities Commission. This guide covers who needs the permit, how to apply, insurance and bonds, rate and truck rules, and what you do not need.

Informational note: This article is general information, not legal or tax advice. Fees, rules, and agency procedures change, so confirm current figures with the agency named in each section. For complex situations, consult a qualified California attorney or certified public accountant (CPA).

Who Needs a BHGS Household Mover Permit

Anyone paid to move used household goods and personal effects by motor vehicle entirely inside California needs a BHGS household mover permit. The requirement applies to the business, not only to the driver. Your structure and service area determine which permit you need:

• Moves entirely within California: You need the BHGS household mover permit.
• Moves only into or out of California: You hold BHGS's interstate mover license and also need operating authority from the Federal Motor Carrier Safety Administration (FMCSA).
• Both types of moves: You apply as a general household mover.
• Brokers: If you arrange household moves for pay, you count as a household mover under BPC 19225.5(a) and (h), even if another company drives the truck.

Two rules apply before you take a single booking. First, you may not advertise, solicit, arrange, or agree to a move without the permit (BPC 19237(a)). That covers your website, online listings, and any commitment to a customer. Second, operating without a permit is a misdemeanor, punishable by up to $10,000 and up to one year in county jail for each violation (BPC 19277(b)). An unpermitted mover cannot sue to collect payment, customers can recover what they paid, and the truck can be treated as a public nuisance and removed by a peace officer (BPC 19237(b) and (c)).

How to Apply

Materials and Information You Need

• A California LLC or corporation, with its Secretary of State filing confirmed
• A California office address, which need not be a place of business activity, plus a registered agent for service of process: an individual who lives in California, or a corporation that holds a Corporations Code 1505 certificate
• A federal employer identification number from the IRS
• A list of every owner, partner, officer, director, member, and manager, since each will be fingerprinted
• An exam qualifier: the owner, a general partner, the responsible managing officer, a member or manager, or an employee who works at least 32 hours a week
• A BHGS Connect account and a payment method for the $500 application fee
• Your truck list, with registration details, and insurance quotes

Step-by-Step Process

1. Choose your entity. Most movers form an LLC. The Articles of Organization (Form LLC-1) cost $70. California does not allow a domestic series LLC, and an LLC cannot render a licensed professional service, which does not apply to a moving business. A corporation files Articles of Incorporation for $100 and then a Statement of Information (Form SI-550) for $25 every year. Ask a CPA or attorney which structure fits your plans.
2. Check and reserve your name. An LLC name must contain “limited liability company,” “L.L.C.,” or “LLC” (“Limited” may be “Ltd.” and “company” may be “Co.”). It may not contain “bank,” “trust,” “trustee,” “incorporated,” “inc.,” “corporation,” or “corp.” You can reserve a name for $10 for 60 days through the Secretary of State name availability page. The reservation cannot be renewed for consecutive periods.
3. File the formation document. Submit the LLC-1 through bizfile Online. Online filings are normally processed within about 5 business days or less, while paper filings take 10 or more business days. Expedited options are $350 for 24-hour processing, $500 for 4-hour drop-off with precleared filing, and $750 for same-day service if the filing is received by 9:30 a.m.
4. Name your agent and confirm your office. List your registered agent on the filing and keep a California office address on record.
5. Register with the tax agencies. Every LLC organized or registered in California from 2024 through 2026 owes the $800 minimum annual franchise tax starting in its first year. 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. An LLC whose first taxable year begins in 2027, 2028, or 2029 pays $400 in year one under RTC 17941(g)(2), so confirm the first-year amount with the Franchise Tax Board. If you sell packing supplies, register with the California Department of Tax and Fee Administration (CDTFA) for a seller's permit, which is free. The statewide base sales tax rate is 7.25%, and local district taxes raise city rates to between 7.25% and 11.75%. If you have employees, register with the Employment Development Department (EDD). The state minimum wage is $16.90 in 2026 and $17.40 from January 1, 2027, but verify that figure with an official state source before you set pay.
6. Check your city. Most California cities charge a local business tax or registration certificate (445 of 483 cities do), and there is no common formula. Counties license only regulated activities. Call your city's business license office before you open.
7. File a fictitious business name statement if needed. If you operate under a name other than your LLC name, file a Fictitious Business Name Statement with the county clerk-recorder within 40 days of starting. Publish it in a newspaper once a week for four weeks, and calendar the renewal because it expires after five years. The statutory fee is $10 plus $2 per additional name or owner, but counties charge more (Tehama County, for example, charges $31 plus $5 for each additional name), and publication is a separate cost. Details are on the Secretary of State fictitious business names page.
8. Apply with BHGS. Register for a BHGS Connect account, complete the application, and pay $500 online for a general or interstate permit. A mail-in form also exists. Individual applicants must have lived in California for 90 days, and an LLC or corporation must be a California entity or qualified to do business here. A transfer, needed when the business is sold or its business type changes, costs $150.
9. Have your exam qualifier pass the exam. The qualifier takes an open-book, multiple-choice computer exam on BHGS Maximum Rate Tariff 4. The exam covers that tariff's rates and rules, not California law in general. You need 70 percent to pass. If you fail, you must wait 30 days before retaking it.
10. Complete fingerprinting. After BHGS reviews your application, every owner, partner, officer, director, member, and manager listed must be fingerprinted for a Department of Justice background check. The DOJ charges its own fee, so check with BHGS for the current amount.
11. Wait for review and the certificate. BHGS says it generally finishes review within 30 days of a complete application and mails the certificate in 4 to 6 weeks. Treat that as typical, not guaranteed. BHGS may also require a performance bond (BPC 19239(e)), so ask during review whether one applies to you.

Insurance and Bonds

Insurance is where many new movers get caught off guard, so set it up before your first booking. Plan for these coverage categories:

• Public liability and property damage coverage on your trucks.
• Cargo coverage of $20,000 for loss and damage, through common carrier liability or inland marine coverage.
• Workers' compensation if you have employees (BPC 19239.4). BHGS suspends a permit when required coverage lapses, so set renewal reminders.
• A $2,000 surety bond if you handle collect-on-delivery shipments.

BHGS sets its liability limits in General Order 100. Check with BHGS for the current limits instead of relying on older articles or forum posts. Ask your insurance agent to confirm in writing that the policy meets General Order 100 before you submit your application. Get several written quotes, because premiums depend on your fleet, driver records, and claims history.

Rates, Advertising, and Truck Rules

Your rates must follow BHGS Maximum Rate Tariff 4. A mover may not advertise, quote, or charge by cubic feet or any other volume measure (BPC 19253.1). Build your estimates, website, and booking forms around the tariff's approved method.

Each truck must display the identification symbol BHGS prescribes (BPC 19236). For vehicles first registered in California on or after January 1, 1985, the symbol goes on both cab doors. Check with BHGS for the required format before ordering decals.

Heavy trucks also face California Highway Patrol (CHP) safety rules. Check with the CHP about the trucks you plan to buy before you commit to a purchase, since the requirements can affect which vehicles fit your plans.

What a Mover Does Not Need

Many new movers assume they need a DMV Motor Carrier Permit for every truck. For household moves under a BHGS permit, you do not. A household mover operating under its BHGS permit is not a motor carrier of property, and its trucks are not commercial motor vehicles under the DMV program (Vehicle Code 34601(a) and (c)(2)(C)). That means the DMV Motor Carrier Permit is not required for household moves.

Other points that catch people off guard:

• A general state business license. California has no general statewide business license. The Secretary of State issues none, and the CDTFA seller's permit is not a business license. Your local city may still require a business tax registration.
• Office, store, and institution furniture. You may carry used office, store, and institution furniture under the same BHGS permit by notifying BHGS (BPC 19241). You still do not need a DMV permit for that work.
• Other freight. If you haul other freight for pay, check with the DMV whether the Motor Carrier Permit applies to that work. Household moves are not the same as hauling general freight.
• Contractor work. If you plan to offer installation or construction work beyond moving, confirm with the Contractors State License Board whether it requires a license. The license threshold is $1,000.

Common Mistakes to Avoid

• Booking before the permit arrives. BPC 19237(a) bars advertising, soliciting, or agreeing to a move without it.
• Quoting by cubic feet. BPC 19253.1 prohibits volume-based quotes, even if your competitors use them.
• Using a trade name without filing. A name other than your LLC name requires a fictitious business name statement.
• Missing the LLC Statement of Information. The Form LLC-12 is 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. The FTB assesses a $250 penalty after a Secretary of State notice if you miss it.
• Letting coverage lapse. BHGS can suspend your permit when required insurance ends.
• Assuming the exam covers all of California law. It covers the tariff, so study Maximum Rate Tariff 4 directly.
• Skipping the transfer. If you sell the business or change its business type, the $150 transfer applies.
• Planning around the review timeline as a guarantee. Thirty days for review and 4 to 6 weeks for the certificate are typical, but delays happen.

Practical Tips

• File the LLC online and pay for expedited handling only if you need to start sooner. Expedited options cost $350, $500, or $750 depending on the timeframe.
• If the owner will not serve as the exam qualifier, hire an employee who works at least 32 hours a week, and confirm they can sit for the exam before you hire them.
• Calendar every recurring deadline: the Statement of Information, the fictitious business name renewal, the annual franchise tax, and the January 1, 2027 minimum wage change.
• Use the California Small Business Development Center network for advising on business planning before you spend money on trucks.

What to Expect

A mover that files its LLC online, applies to BHGS with a complete package, and has a qualified exam taker and insurance in place may find the process moves in roughly the typical timeframes BHGS describes. Results vary. Applications with missing information, fingerprinting delays, or insurance questions may take longer. Plan your launch date around the certificate, not the date you filed, and avoid committing to customers until the permit is in hand.

Next Steps

Start with the LLC filing and the name reservation, then work through BHGS while the Secretary of State processes your paperwork. Keep your notes organized in one file so each deadline and fee is easy to track. For tax questions, consult a CPA. For contract, liability, or structure questions, consult a California attorney. Confirm every fee and date in this article with the agency that sets it before you file.