Skip to content
All posts

What are the legal requirements for starting a small business in California?

As a lawyer, I can advise on the legal requirements for starting a small business in California. In California, all businesses are required to register with the California Secretary of State, except for sole proprietors who are using their own name. The registration process typically involves filing articles of incorporation, limited liability company (LLC) or partnership agreements, and obtaining any necessary permits or licenses, depending on the type of business.

Additionally, small business owners should be aware of California employment laws, including minimum wage requirements, workers compensation insurance, and overtime regulations. If a business has employees, it is necessary to obtain an employer identification number from the Internal Revenue Service (IRS) and to register with the California Employment Development Department (EDD).

Small business owners should also be aware of the various tax requirements in California. This includes obtaining a California seller's permit if the business will be selling tangible goods, paying state and local taxes, and filing state tax returns.

Last but not least, small business owners in California should consider obtaining liability insurance to protect against any potential lawsuits or legal claims. Business owners should also have a solid understanding of any contracts or agreements they enter into, such as leases or employment contracts.

It is important to note that specific legal requirements may vary depending on the type of business and location within California. It is recommended that small business owners consult with a licensed attorney to ensure compliance with all legal requirements and to tailor legal advice to their specific business needs.