How to Start a Business in California: Legal Steps Every Entrepreneur Needs to Know
Starting your own business in California is an exciting journey filled with opportunities–but it also brings serious legal responsibilities.
If you’re an entrepreneur ready to build your dream, understanding the legal steps to start a business in California is crucial. It’s not just about registering a name or getting a license–it’s about building a business that’s legally protected and ready for long-term success.
Many new business owners underestimate the legal complexities involved in business formation. Without the right guidance, you could face fines, lawsuits, or even be forced to shut down.
That’s why it’s essential to get started on the right legal foundation–and working with a trusted California business formation attorney can make all the difference.
What Do You Need to Start a Business in California?
To legally start a business in California, you’ll need to:
- Choose a business structure (LLC, Corporation, etc.)
- Register your business with the California Secretary of State
- Obtain an Employer Identification Number (EIN)
- Apply for necessary licenses and permits
- Draft internal legal documents (Operating Agreement, Bylaws, etc.)
- Comply with state tax, labor, and employment laws
Legal Steps to Start a Business in California
1. Choose Your Business Structure Popular business structures in California:
- Sole Proprietorship – Simple, but no personal liability protection
- Partnership – Shared ownership and responsibility
- LLC (Limited Liability Company)
- Flexible, with strong liability protection
- Corporation (C-Corp or S-Corp)
- Suitable for larger businesses and raising capital
2. Register with the California Secretary of State If you’re forming an LLC or Corporation, file your formation documents online. Sole proprietors should file a Fictitious Business Name (FBN) with their local county.
3. Get an Employer Identification Number (EIN) An EIN is your federal tax ID. You’ll need it for:
- Hiring employees
- Filing business taxes
- Opening a business bank account
You can apply for free through the IRS website.
4. Apply for Local and State Business Licenses You may need:
- A city or county business license
- Zoning permits
- Professional or industry-specific licenses
- A California Seller’s Permit
5. Draft Internal Legal Documents
Create:
- Operating Agreement
- For LLCs
- Corporate Bylaws
- For Corporations
- Partnership Agreement
- For Partnerships
6. Comply with California Tax and Employment Laws Ensure you:
- Register for state income and sales tax
- Follow labor laws and wage rules
- Set up payroll and workers’ compensation insurance
- Register with the EDD
Why Work with a California Business Formation Attorney?
At Generational Law Group, APC, we help new business owners make legally sound decisions from day one.
Benefits:
- Tailored legal guidance
- Proper filing and documentation
- Compliance with laws
- Peace of mind
Contact Us:
Call: (877) 322-5545
Visit: www.generationallawgroup.com
Frequently Asked Questions
Do I need a lawyer to start a business in California?
No, but a lawyer can help you avoid costly mistakes and set up your business the right way.
How much does it cost to register a business in California?
- LLC: $70 filing + $20 Statement of Information
- Corporation: $100 filing + $25 Statement of Information
Let’s Build Your Business the Right Way
Generational Law Group, APC is here to help.
Contact us today and start with confidence.
