What are the steps I should take if I am starting a new business in California?

If you are starting a new business in California, there are several steps you should take to ensure that your business is compliant with state and federal laws.

1. Choose a business structure: You will need to decide on the type of business structure that best fits your needs. The options include sole proprietorship, partnership, Limited Liability Company (LLC), or corporation. Each structure has its own benefits and drawbacks, and it is essential to understand them before selecting one.
2. Register your business: After choosing your business structure, you will need to register your business with the California Secretary of State. LLCs and corporations need to submit formation documents, while sole proprietors and partnerships do not need to file anything beyond obtaining necessary permits and licenses.
3. Obtain necessary permits and licenses: Each business will require different permits and licenses that will depend on the industry and location of the business. For example, a restaurant would need to obtain health department permits and liquor licenses, whereas a construction company would need licenses related to occupancy and operation.
4. Obtain an Employer Identification Number (EIN) and open bank accounts: An EIN is a unique identification number that identifies your business to the IRS, and you will need to obtain one if you plan on hiring employees. Additionally, opening up a business bank account will help ensure that you keep track of your finances, keep personal and business funds separate, and provide an organized record of transactions.
5. Obtain appropriate insurance: You should consider obtaining insurance that is tailored specifically to your business, such as business liability insurance or worker's compensation insurance. Insurance will protect your business and minimize the risk of lawsuits and claims.
6. Comply with employment laws: Once you hire employees, you will need to comply with various employment laws, such as minimum wage requirements and overtime policies. Additionally, ensure that you provide all necessary contracts, such as employee contracts and non-disclosure agreements.
7. File necessary taxes: Your business will need to file federal and state taxes, where appropriate. LLCs, partnerships, and sole proprietors are taxed differently, and it is essential to seek relevant tax advice and create a plan to comply with tax laws.

In general, starting a new business in California can be complex and require detailed compliance with various laws and regulations. It is advisable to seek assistance from a lawyer, particularly if you are unsure of the legal implications of any aspect of starting and running a business.