How do you start a business in California?


Quick Answer

To start a business in California, develop a business plan, complete business training programs, and choose a business structure and a company name. Acquire an adequate amount of capital to start your business, and register for taxes and business permits.

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Full Answer

Adequate preparation is necessary to start a business in California. Devise a business plan to evaluate personal and business goals and milestones, and educate potential investors about the business. Several low-cost or free business training and counseling programs are available online or in-person. Starting a business in California requires knowledge in business fundamentals, such as gaining capital and business expansion.

California requires businesses to have a fictitious name if it is not named after the owner. Fictitious name statements are available at any local Clerk Recorder office. In addition, businesses are required to choose a form of business structure to operate under. The business entity registration takes place through the California Secretary of State. The type of business entity determines the amount of paperwork, liability and taxes for the business owner.

Starting a business requires sufficient capital. The main sources for business capital are personal savings, home equity, contributions from friends or family, crowdsourcing and business loans from banks. Government programs are available to assist those looking to finance their business start-up.

Registering for taxes and business permits is also required in order to start a business in California. Business permits are necessary to operate legally and are obtainable within the local city. Register for taxes with the state of California and the federal government to acquire a Federal Employer Identification Number, along with more information regarding payroll, insurance and employment.

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