Small Business · Official link · Reviewed July 14, 2026
Business paperwork router
Starting a business is a route, not a form. Pick the path that matches the work, and the permits fall in order.
The short version
A business usually needs several separate records
Choose the ownership form first. A sole proprietor usually does not form an entity with the Secretary of State; an LLC or corporation does. A California LLC currently costs $70 to form, then files a $20 Statement of Information within 90 days and every two years after. It also generally owes an $800 yearly state tax. The cheap records come next: an EIN is free from the IRS, and a seller's permit is free from CDTFA and generally needed for taxable goods. Then the address gets its say - the city or county can still want a business license and zoning approval.
What changes the answer: No single filing replaces the rest. An LLC does not create an EIN or seller's permit. It does not create a local license, zoning approval, workers' comp policy, or license for regulated work.
Skipping a record is expensive later. A missed filing can grow penalties, and a lease signed before the zoning check can trap the whole plan. Ten careful minutes now beats an unwinding project next year.
How it works
The ownership form comes first
A sole proprietorship is one owner doing business without a separate state entity. A general partnership has two or more owners. An LLC or corporation is formed with the Secretary of State. It brings its own filings, taxes, and record duties.
For a California LLC, the current state filing fee is $70. The first $20 Statement of Information is due within 90 days. Another is due every two years. The Franchise Tax Board generally charges an $800 annual tax. Some LLCs owe an added income-based fee.
The name, EIN, and entity are different records
The IRS issues an EIN without a fee. It is a federal tax number, not a state business license. A sole proprietor without workers may not need one for every task. An entity, bank, payroll setup, or tax filing often does.
A fictitious business name filing links a trade name to the owner. It does not create an LLC. When publication is required, it must generally begin within 45 days after filing. It then runs once a week for four weeks. The county handles that record.
Taxable sales and the location add their own papers
A business that sells or leases taxable goods generally needs a CDTFA seller's permit. The permit is free. CDTFA can require security in some cases. Display the permit at the business site. Use the account for returns and tax collected from buyers.
A city or county may also require a local business license. The address may need zoning, home-work approval, a health permit, sign permit, or fire review. CalGOLD can name likely offices. It does not issue the permit. The exact address decides the local layer.
The first employee changes the checklist
A California business generally enters the payroll system after paying more than $100 in wages in a calendar quarter. It must register with EDD within 15 days after that point. The EIN and the EDD payroll account are different numbers.
California employers generally need workers' comp insurance when they have one or more employees. Payroll records and wage notices also start with work. So do sick leave, workplace posters, and safety duties. Calling a worker an independent contractor does not settle the legal test.
Regulated work adds a license or permit path
A contractor generally needs a CSLB license when a project needs a building permit, uses employee labor, or costs $1,000 or more in labor and materials. Food, alcohol, cannabis, health care, beauty, child care, and many professions use their own state and local systems.
Cannabis is a clear example of two layers: local approval comes before the state application, and a city or county can ban or limit commercial activity. Open the regulated-business route when the product, service, facility, or profession is controlled beyond an ordinary business license.
First useful action
Start with the route selector
Pick the closest task. The result will point to the focused page or official office that fits.
Route selector
Select the business path.
Pick an option above to see the right first stop.
First moves
- 1
Write down what the business will do, including goods, services, workers, ownership form, trade name, home work, food, alcohol, cannabis, or industrial activity.
- 2
Write down the business name, owner name, address, city, county, website, product or service, employees, and start date.
- 3
Use CalGold to see which permits may apply. Then confirm with the local office.
- 4
For an LLC, corporation, limited partnership, or many name filings, start with the Secretary of State.
- 5
For a seller's permit or sales and use tax account, start with CDTFA if you may sell taxable goods.
- 6
For state income or franchise tax, start with FTB.
- 7
If you will pay workers, check EDD for payroll taxes. Check DIR for wage, safety, and workers' compensation requirements.
- 8
If the work is licensed, check DCA or the specific board before taking money.
- 9
For food, alcohol, cannabis, or industrial stormwater, use the special official source early. Check before signing a lease.
- 10
For an EIN, use IRS directly. The IRS EIN application is free.
Watch for
- 1
A city business license is not the same as an LLC, seller's permit, EIN, health permit, or professional license.
- 2
The mailing city is not always the office that controls zoning or business licensing. Check city limits and county rules.
- 3
A business name search does not settle whether the name is safe for every use. Names, trademarks, DBAs, domains, and licenses are different.
- 4
A seller's permit, resale certificate, sales tax return, income tax return, and payroll tax account are different papers.
- 5
Hiring one worker can add new steps. Check payroll tax, wages, workers' compensation, safety, and records.
- 6
Home businesses can still need zoning, HOA, landlord, health, fire, or local permit checks.
- 7
Some fields have extra licenses. Check food, alcohol, cannabis, construction, beauty, repair, health, finance, and child care before you start.
- 8
If a lease, loan, tax bill, worker issue, license denial, fine, lawsuit, or safety issue is involved, use the official source and get qualified help.
Official sources
Where to confirm this
Use the source that matches the step you are on. Current forms, fees, deadlines, and agency decisions can change after this page is reviewed.
Use this as a map. It does not decide your rights, tell you what to file, or say someone broke the law. If a deadline, denial, eviction, firing, injury, tax bill, permit fight, or insurance dispute is on the line, use the official source or a licensed professional.