Why You Need a California Business License

California Business License

If you are starting a business in the state of California, then you will definitely need a California business license.

Anyone who owns his or her own business can tell you for a fact that there a million and one things that needs to be done when starting a business, one of the MOST IMPORTANT tasks that any future business owner needs to do is to ensure that they obtain a business license or what many other people know as “business permit.” Sadly, a lot of people are so busy handling other aspects of starting their business that they overlook the importance of getting a business license and they end up getting in legal mess.

Why You Need a California Business License

Business permits are required by the California state, county and city government. There are cases when one may also be required to get a business permit by the Federal Government. A business license issued by a California county or municipal government is a general license that will give you the legal right to run a business within the jurisdiction of that city or county.

How to Get Your Business License – Local Level

  • Ensure that you get all your business paperwork together. Ensure you have your EIN (Employer Identification Number).

  • Contact your city hall or county government office in order to find out what type of business permit you need to get, and to also get a copy of the business permit application form.

  • After completing the application and filing it along with the appropriate fee, you will also need to ensure that you remember to file your business permit renewals – they don’t renew themselves automatically. The renewal process is done annually.

How to Get Your Business License – State Level

A California license is needed for the operation of enterprises that provide goods or services that are regulated by the California State law. If the type of enterprise you run is required to meet certain codes or standards, you will need to get a business permit. The process for getting a California State business license is pretty similar to obtaining a license at the local level (explained above). The first thing you need to do is to contact the appropriate officer in order to find out what type of  license you need. You can get information from your local government – simply contact the State of California, business.ca.gov/StartaBusiness/RegisteringaBusiness/Locallicensesandpermits.aspx, in order to obtain a California license. File the appropriate paperwork and of course, the appropriate fee; then ensure that you renew your license yearly.