Skip to content
All posts

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

To start a small business in California, there are several legal requirements that must be met. The following are some of the key legal requirements for starting a small business in California:

  1. Business License: All businesses operating in California must obtain a license that is appropriate for their type of business from the county or city in which they operate.
  2. Register with the State of California: If the business is structured as a corporation, limited liability company, partnership, or limited partnership, it must be registered with the California Secretary of State.
  3. Taxes: Depending on the type of business, the state of California may require businesses to register for and pay state and federal taxes. Businesses may also need to obtain a seller's permit or a resale certificate if they plan to sell products.
  4. Permits and Regulations: Depending on the nature of the business, a business owner may need to obtain special permits and licenses from state and local regulatory agencies.
  5. Hiring Employees: Employers must comply with California's labor laws and have proper workers' compensation insurance and unemployment insurance.

It is important to note that there may be additional legal requirements, depending on the nature of the business. For example, certain industries, such as healthcare or foodservice, may have specific regulations that must be followed.

If a business owner has questions or concerns about legal requirements, it is recommended to consult with a licensed attorney who specializes in business law in California.