You’ve taken the time to draft a thorough business plan, create a budget, and pinpoint your target audience. Maybe you’ve even driven around town to find available locations that you can call home for your business. Now comes the legal side of things: obtaining business permits. Before you can legally do business in California, there are certain permits that you must have.
Depending on your business model, you may need a wholesale license in California, a resale license, or another type of license. Here’s information about all of the permits that California startups need before opening their doors.
Once you know your business’s name and offering, you can apply for certain permits. The sooner you get the process started, the sooner you can turn your business into reality.
If you will be selling taxable goods, you, at a minimum, need to have a California seller's permit. With this permit, you can legally sell goods, products, and services that are taxable. Make note that if you plan to have several locations throughout the state, you will need a seller's permit for each location.
In California, there's no fee to be issued a seller's permit. Note that the State Board of Equalization may require a security deposit, depending on your business type.
Sales Tax License
Another must-have permit to conduct business in the state is a sales tax license. Not only are business owners required to obtain a federal Employer Identification Number (EIN), you must also receive a California sales tax license. This license is required to ensure that proper tax withholding is applied to your business by the state.
Without this permit, you could end up owing a large sum of money to the IRS as well as state and local taxation offices.
Depending on the location of the city or county where you have your business, you may need to apply for specific permits. Common local permits include: Health permit
If you have any questions about which permits your business needs to legally operate, it's best to contact the State Board of Equalization. By ensuring you have the proper permits and licenses before starting a business, you’ll have the peace of mind that you’re meeting all legal requirements to run your business without incident.
Obtaining Permits & Licenses
California startups will need to submit proper paperwork to the State Board of Equalization to apply for and obtain the necessary permits and licenses for their business. The BOE offers an online service that allows business owners to apply, or you can apply in person.
The process of obtaining business permits and licenses can be quite tedious. To make the process much easier, we’ve created an online service that allows business owners to easily apply for a California seller’s permit.
FastFilings.com is a verified and BBB-accredited filing service. In just a few clicks, you can apply for a business permit. For questions or concerns, visit our website or contact us at (415) 857-3301.