What legal steps should I take before starting a small business in California?

As a lawyer, before starting a small business in California, there are several legal steps that you need to take to ensure that you are in compliance with California law. These steps include:

1. Choose the Right Business Entity: Choose a business entity that best fits the needs of your business. California allows for different types of business entities including sole proprietorship, partnership, limited liability partnership (LLP), limited liability company (LLC), and corporations. Each has its own unique advantages and disadvantages, so it is crucial to determine which one aligns with your business goals.
2. Register Your Business: Register your business with the state of California. You are required to register with the California Secretary of State if you operate as a corporation, LLC, or limited partnership. For other business structures, you may have to register with the local county or city authorities. Be sure to obtain all necessary permits and licenses, including a seller's permit, zoning permit, and business license.
3. Obtain Required Permits and Licenses: Depending on the type of business you are starting, you may need to obtain certain permits and licenses. This can vary by the county and city where your business operates. For general information, you can use the CalGOLD website, which provides a directory of permits and licenses required based on industry, business type, and location.
4. Obtain an EIN: You must obtain an Employer Identification Number (EIN) if you plan to hire employees or operate as a corporation, partnership, or LLC. Getting an EIN is simple, and you can do it online through the IRS website.
5. Draft Legal Documents: You need various legal documents to secure your business, including bylaws or operating agreements, employment contracts, nondisclosure agreements, legal agreements with partners, and more. Hire a lawyer to help you draft these legal documents to ensure that they are accurate, complete, and legally binding.
6. Comply with Tax Obligations: California imposes various taxes on businesses. These taxes include sales tax, income tax, and payroll taxes. You must obtain an employer account number from the California Employment Development Department (EDD) and comply with Federal and State income tax filings.
7. Ensure Proper Insurance Coverage: Obtain adequate insurance coverage, including worker's compensation, general liability insurance, and professional liability insurance. California's workers’ compensation laws require all businesses with employees to have workers' compensation insurance.

In conclusion, starting a business in California requires meeting certain legal requirements, obtain required permits, registrations and drafting legal documents. Ensure you comply with Federal and State tax code and take adequate insurance coverage. It is always essential to work with a lawyer who can help you navigate the complexity of California's legal system and protect your business.