Get California Business License Tax 2021-2024

Whether you're operating from home or a storefront, office or industrial park, you'll need a Business Tax Certificate (sometimes referred to as a "Business License"). Business Tax Certificate applications are managed by HdL and are available online Opens a New Window. .

Most businesses are required to obtain a business license from the city or county in which they operate, and California small business license requirements can vary depending on the type of business and where it's located.

While the state doesn't issue or require a business operating license, it regulates and requires licenses or permits for some business activities. Most businesses are, however, required to obtain a business operating license with their county and/or city.

You may apply for a business license in person or by mail (certain restrictions apply). All business license applications must have original signatures. Copies, emails, or faxed applications will not be accepted.

Business entity filing is not necessary for sole proprietors, but if you intend to form a corporation, limited liability company or partnership, you must file with the California Secretary of State(SOS). All businesses are required to file state income tax with the Franchise Tax Board(FTB).

Those who are caught contracting without a license likely will have to appear before a Superior Court judge to answer to misdemeanor charges that can carry a potential sentence of up to six months in jail and/or a $5,000 fine, as well as an administrative fine of $200 to $15,000.

In California, you don't have to take special steps to register your business with the California Secretary of State if you operate as a sole proprietorship. You're simply a sole proprietor once you begin doing business – and earning business income. California doesn't require a statewide business operating license.

In general, most CA small businesses will pay between $50 and $100 for a general business license. Larger corporations may be subject to charges based on their projected revenue.