First:
-
Obtain a California
Business Licence -
All California
Businesses are
required to obtain a
California Business Licence.
-
Obtain an Employer Identification
number
Federal Tax Id
FEIN
-
Obtain a DBA or
Corporation OR
California
LLC
-
Establish bank accounts
-
Obtain a
State
Employer
Tax Id EIN
Employer Identification number if you have or
soon will have employees
-
Obtain a
Seller's
Permit
Wholesale License Resale Reseller's License if
you sell taxable items
The
following
laws, rules and California regulations
apply to
ALL businesses: Web
Site Businesses, ebay, online, home, individuals,
corporations, or any other business
you enter into. All businesses need these licenses.
How do I start a business in
California?
-
-
California
Business Licence -
All California
Businesses are
required to obtain a
California Business Licence.
(Corporations & LLCs need it as well
- A corporation Registering is NOT a Business Licence Registering)
-
Caifornia
DBA
- All
California
Businesses that use a
business name other than the owner's personal or
legal name are
required to obtain a
DBA.
Also called a doing business as, Ficticious,
trade, or assumed business name.
(Corporations & LLCs are included)
-
California
Seller's
Permit - All
California
Businesses
that are Retailers or wholesalers of taxable goods or services are
required to obtain
a
Seller's
Permit / Wholesale License. (Note:
This Permit is obtained IN ADDITION to a
Business Licence (Corporations & LLCs
are included)
-
State
Employer
Tax Id EIN - All
California
Businesses
that are employers are
required
to obtain a California
State
Employer
Tax Id EIN
and a federal employer tax id FEIN.
(Corporations & LLCs are included)
-
California
Federal Tax Id
FEIN - All
California
Businesses
that are Employers,
California Corporations, LLCs, or Ltd partnerships
are
required to obtain
a Federal Tax Id
FEIN.
-
California
Corporation OR
California
LLC
-
Recommended to
reduce
taxes, obtain
corporate
credit, protect assets, and eliminate
personal legal, civil and financial liability.
More...
Table of Req'd Documents
Fees
About
Us Contact Us
All Registering Fees Are Included
in
Prices
Buy
Bundles
and Save $10
for each additional item you order.
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reduce
the chances for personal liability
(Required for
all
business types -
Corporations,
Individuals, eBay, Online and home
businesses are included!)
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How
Do I Start a Business
in California?
Your capital needs will be
determined by the type of
California operation
that you are starting. For example a
manufacturing firm will need more
than a
California service firm.
- Have an understanding of
the
California business
-
List all Expenses.
-
Make Sure You Have Enough
Money
-
Determine
California Business Form
(E.g., Sole Owner or LLC)
- Obtain the
California Business Licences Required
-
Prepare a Budget.
-
Execute Your
California
Business Plans
-
Enjoy Making Money
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DO I NEED
California
INSURANCE?
You don't need
insurance to
start a
California business
but if you
decide to obtain
insurance, it
depends on your
business
activities.
Insurance may be
required for
employees (
California worker's
compensation
insurance,
disability
insurance, or
unemployment
insurance).
Here are some
types of
California insurance for
businesses:
Surety bonds,
business
interruption
insurance,
liability
insurance
covering
premises,
activities, and
products.
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CAN I RUN A
California
BUSINESS
OUT OF MY HOME?
Yes if you
comply with all
above
requirements.
You can have a
business home
office and in
most cases
receive a small
number of
customer visits.
Normally, you
may be
restricted in
the storage,
delivery or
distribution of
tangible items
directly to or
from your home.
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Starting
a Business in the State of
California
Is my
California
corporation subject to tax or income tax?
Your
California
corporation is subject to the
minimum franchise tax and any
corporation 'doing business' in
California is subject to the minimum
franchise tax. For example if your corporation only
maintains inventory in California,
your corporation would be subject to
corporate income tax. Unincorporated
business entities are also subject to
corporation income tax.
Is an S
California
corporation subject to the
minimum state tax?
Yes, S
California
corporations are subject to the
minimum state tax. The current minimum tax is
$800
for the first income year, measured
for the second income year, and $800
for subsequent years.
What forms
do S corporations Register?
-
To elect or terminate S
California
corporation status, form FTB
3560, S Corporation Election or
Termination/Revocation
-
To report franchise or income
tax, Form 100S, California S
Corporation Franchise or Income
Tax Return
-
To report shareholder's share of
income and deductions, Form
100S, Schedule K-1
-
To report list of shareholders,
form FTB 3830, S
Corporation's List of
Shareholders and Consents
How do I
get tax-exempt status?
You must Register an Exemption
Application, and receive exempt
status notification from the
State Tax Board.
All
California
corporations and unincorporated
even if organized on a nonprofit
basis, are subject to California income tax.
A grant of federal exemption does
not automatically exempt you from
California tax. FTB 3500 should be
submitted 90 days prior to the date
your exempt status is needed.
I
have exempt status. Do I need to
Register
California
Form 100 or Form 109 in
addition to Form 199?
Every
California
organization exempt must Register Form 109 if
the gross income from an unrelated
trade or business exceeds $1,000.
My
California
corporation is not doing business;
does it have to pay the minimum
franchise tax?
Yes, if your
corporation is incorporated in or is
qualified to do business in
California, it must Register a return
and pay the minimum tax.
How do I dissolve my corporation?
Register dissolution documents with the
Secretary of State.
Also
obtain a Tax Clearance Certificate
by Registering form FTB 3555, Request for
Tax Clearance
Certificate-Corporation.
FTB 1149 Explains the entire
dissolution process and includes the
required Registering documents.
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