Here's what you need in California
Official state business portal: CalGold Permit Assistance Tool. CalGold shows the permits and licenses your business may need based on its type and city, with contact details for each agency.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseLocal business license (city or county). California's tax agency says a seller's permit is not a business license and that you get a separate business license from your local business license department. Use CalGold to find the permits for your business type and city. | Your city or county business license office | Set by your city or county | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization (Form LLC-1). File Articles of Organization with the California Secretary of State, online through bizfile Online. You must also file a Statement of Information within 90 days and every two years after that. | California Secretary of State | $70 filing fee, plus $20 for the Statement of Information | Applyat bizfileonline.sos.ca.govSource | Nov 7, 2026 |
| Business name (DBA)Fictitious Business Name Statement. Fictitious business names (DBAs) are filed with the county where your main place of business is, not with the state. Check with your county for its form and fee. | County clerk in the county of your main place of business | Set by each county | Source | Nov 7, 2026 |
| Sales tax permitSeller's Permit. If you sell or lease goods that are subject to sales tax, you need a seller's permit from the CDTFA and must display it at your place of business. Registering online is free. | California Department of Tax and Fee Administration (CDTFA) | Free | Applyat cdtfa.ca.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Employer payroll tax account. Register with the EDD as an employer within 15 days once you hire employees and pay them more than a small amount of wages in a calendar quarter. You can register online through e-Services for Business. | California Employment Development Department (EDD) | You pay tax on wages | Applyat edd.ca.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in California pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual LLC Tax (Form FTB 3522)Every LLC doing business or organized in California pays the annual tax every year until it is canceled, even with no business. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State; the first year exemption applied only to tax years 2021 to 2023. | California Franchise Tax Board | $800 a year | Applyat ftb.ca.govSource | Nov 7, 2026 |
| LLC Fee (Form FTB 3536)On top of the annual tax, an LLC with higher total California income pays an extra fee based on that income. Estimate and pay it by the 15th day of the 6th month of the tax year. | California Franchise Tax Board | $900 to $11,790 a year, only if total California income is $250,000 or more | Applyat ftb.ca.govSource | Nov 7, 2026 |
| Statement of Information (Form LLC-12)File a Statement of Information within 90 days of forming the LLC, then every two years. File online at bizfileOnline. | California Secretary of State | $20 filing fee | Applyat bizfileonline.sos.ca.govSource | Nov 7, 2026 |
| City business tax certificate or licenseCalifornia cities set their own rules. For example, every business in the City of Los Angeles must get a Business Tax Registration Certificate from the Office of Finance, so check with your city. | Your city or county | Fee not published.Ask the agency | Source | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonEstablishment License. Barber shops, hair salons and nail salons need an establishment license from the California Board of Barbering and Cosmetology. One board covers both barbering and cosmetology. | California Board of Barbering and Cosmetology | $50 application fee, $40 to renew | Applyat barbercosmo.ca.govSource | Nov 7, 2026 |
| Child care in your homeFamily Child Care Home License. Family child care homes, where care is given in the provider's own home, are licensed by the California Department of Social Services. A small family child care home is licensed for up to 8 children; larger homes need a large family child care home license. | California Department of Social Services, Child Care Licensing Program | Fee not published.Ask the agency | Applyat cdss.ca.govSource | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Alcoholic beverage license. Bars and restaurants get alcohol licenses from the California Department of Alcoholic Beverage Control. You can apply online, and your local ABC office explains the steps. The fee depends on the license type. | California Department of Alcoholic Beverage Control (ABC) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| General contractorContractor License. California licenses general and specialty contractors through the Contractors State License Board. The application fee covers the exam, or a waiver, for one classification. | Contractors State License Board (CSLB) | $450 application fee, plus a $200 initial license fee for a sole owner ($350 for other businesses) | Applyat cslb.ca.govSource | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage Food Operation (Class A registration or Class B permit). California's Homemade Food Act lets you make certain foods at home as a cottage food operation. Class A allows direct sales to customers and Class B also allows sales through shops and restaurants; ask your county environmental health department for its fee and the current yearly sales limit. | Your county environmental health department (under California state law) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
What is different in California
- At $70, the LLC filing fee is among the lowest: only 12 of 49 verified states charge less.
- Where to file a business name (DBA): Fictitious business names (DBAs) are filed with the county where your main place of business is, not with the state. Check with your county for its form and fee.
- At $50, the salon or shop license fee is among the lowest: only 4 of 36 verified states charge less.
- Annual LLC Tax (Form FTB 3522): $800 a year. Every LLC doing business or organized in California pays the annual tax every year until it is canceled, even with no business. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State; the first year exemption applied only to tax years 2021 to 2023.
Steps to start a business in California
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization (Form LLC-1) with the California Secretary of State ($70).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the County clerk in the county of your main place of business.
Register for sales tax
If you sell taxable goods or services, get your permit from the California Department of Tax and Fee Administration (CDTFA) before your first sale.
Get the state business license
Local business license (city or county), from the Your city or county business license office.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the California Employment Development Department (EDD).
City and county permits
Cities and countys in California can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Los Angeles: the city, and Los Angeles County. Business Tax Registration Certificate (finance.lacity.gov), City of Los Angeles (lacity.gov)
- San Diego: the city, and San Diego County. Business Tax Certificate (sandiego.gov), City of San Diego (sandiego.gov)
- San Jose: the city, and Santa Clara County. City of San Jose (sanjoseca.gov)
- San Francisco: the combined City and County of San Francisco. Business Registration Certificate (sf.gov), City of San Francisco (sf.gov)
- Fresno: the city, and Fresno County. Business License and Tax Certificate (fresno.gov), City of Fresno (fresno.gov)
- Sacramento: the city, and Sacramento County. Business Operations Tax certificate (cityofsacramento.gov), City of Sacramento (cityofsacramento.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in California
Do I need a business license in California?
Only some businesses. California's tax agency says a seller's permit is not a business license and that you get a separate business license from your local business license department. Use CalGold to find the permits for your business type and city.
How much is a business license in California?
There is no general state business license fee in California. A local business license, if your city or county requires one, is priced by that city or county. State licenses for some types of business have their own fees, listed on this page.
How much is an LLC in California?
The California Secretary of State charges $70 filing fee, plus $20 for the Statement of Information to file the Articles of Organization (Form LLC-1). File Articles of Organization with the California Secretary of State, online through bizfile Online. You must also file a Statement of Information within 90 days and every two years after that.
How much does an LLC cost per year in California?
Annual LLC Tax (Form FTB 3522): $800 a year. Every LLC doing business or organized in California pays the annual tax every year until it is canceled, even with no business. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State; the first year exemption applied only to tax years 2021 to 2023. LLC Fee (Form FTB 3536): $900 to $11,790 a year, only if total California income is $250,000 or more. On top of the annual tax, an LLC with higher total California income pays an extra fee based on that income. Estimate and pay it by the 15th day of the 6th month of the tax year. Statement of Information (Form LLC-12): $20 filing fee. File a Statement of Information within 90 days of forming the LLC, then every two years. File online at bizfileOnline.
Does an LLC need a business license in California?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in California still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in California?
Yes, if you sell taxable goods or services. If you sell or lease goods that are subject to sales tax, you need a seller's permit from the CDTFA and must display it at your place of business. Registering online is free. Official fee: Free.
How much is a DBA in California?
Fictitious business names (DBAs) are filed with the county where your main place of business is, not with the state. Check with your county for its form and fee. Official fee: Set by each county.
Can I sell homemade food from home in California?
California's Homemade Food Act lets you make certain foods at home as a cottage food operation. Class A allows direct sales to customers and Class B also allows sales through shops and restaurants; ask your county environmental health department for its fee and the current yearly sales limit.
Do contractors need a state license in California?
California licenses general and specialty contractors through the Contractors State License Board. The application fee covers the exam, or a waiver, for one classification. Official fee: $450 application fee, plus a $200 initial license fee for a sole owner ($350 for other businesses).
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Your city or county business license office Checked Nov 7, 2026
- Form an LLC California Secretary of State Checked Nov 7, 2026
- Business name (DBA) County clerk in the county of your main place of business Checked Nov 7, 2026
- Sales tax permit California Department of Tax and Fee Administration (CDTFA) Checked Nov 7, 2026
- Unemployment insurance (once you hire) California Employment Development Department (EDD) Checked Nov 7, 2026
- Official business portal State of California Checked Nov 7, 2026
- Hair salon, barber shop or nail salon California Board of Barbering and Cosmetology Checked Nov 7, 2026
- Child care in your home California Department of Social Services, Child Care Licensing Program Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) California Department of Alcoholic Beverage Control (ABC) Checked Nov 7, 2026
- General contractor Contractors State License Board (CSLB) Checked Nov 7, 2026
- Selling homemade food (cottage food) Your county environmental health department (under California state law) Checked Nov 7, 2026
- Annual LLC Tax (Form FTB 3522) California Franchise Tax Board Checked Nov 7, 2026
- Statement of Information (Form LLC-12) California Secretary of State Checked Nov 7, 2026
- City business tax certificate or license Your city or county Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026