Make your business come true in California
Do you feel the inner calling for independence and business adventure? Would you like to become a business owner and a decision-maker? Starting a business is like opening a new door. It brings new experiences to light, both good and challenging. It can sound complicated and scary, but in fact - it is only a few steps process. Below, we list what exactly is needed for starting your own business in California. We will help you to set it all right.
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Deciding on a company name & structure
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Registration process & documents
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Tax obligations
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Valuable tips
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& more
Are you from another state?
Check out other guides if you need more detailed information about different states. You can click the state you are interested in on our map or choose it from the list below.
Pick your company name
While thinking about your company name, consider these few crucial elements, as a perfect name:
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cannot exist in the businesses database (cannot be already registered)
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should be personal and unique
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has a positive association
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indicates the type of industry
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is related to what you do (if it is very specific) and open for possible business modifications in the future as well (to stay up-to-date even if you, e.g., broaden your field of expertise)
You may also decide on a trademark for your business, like logo and a slogan.
To reserve a business name for a period of 60 days, register your new business, including a trademark, and read more valuable information, visit the California state website for business purposes (bizfile Online) and create your account.
Choose the entity type
There are a few types of entities that you can form in California state. Requirements, taxes, benefits, and flaws differ from one another.
- Sole Proprietorship
- Limited Liability Company (LLC)
- General Partnership
- Limited Partnership
- Corporation
As for the small service business, we suggest choosing from the first three options.
Note: "To ensure that all issues are considered and addressed appropriately, you should consult with private legal counsel prior to submitting formation documents to the Secretary of State" (source: ca.gov).
Set up your business domain
A business website is the visual image of your company and a source of information about your services for your future potential customers. While creating your webpage, consider the following elements:
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it cannot be already registered
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the domain name should be the same or at least very close to your business name
You can set up your company website for free using IKOL - just create an account and your domain is generated automatically! Then you can customize it to your needs, by adding services from our default catalog, adjusting the layout, publishing photos, and other data.
Check how your website could look like
Start your journey now
& enjoy the difference
Place application with needed documents
Depending on a chosen business entity, the application procedures and documents may vary. Find your type below and check what is needed.
Note: You can check the current processing dates here: sos.ca.gov.
Sole Proprietorships are not registered.
General Partnerships are not required to register with the Secretary of State. Although, if you want to register your business, file a Statement of Partnership Authority (Form GP–1).
To register an LLC, the following documents are required:
- Articles of Organization
- Statement of Information
- Attachment to Statement of Information: (use if the limited liability company has more than one manager or member)
- $70 fee ($85 if submitted in person) + $5 for a certified copy (optional)
You can file the documents online, in person, or via mail.
Obtain EIN & check tax regulations
If you are going to work with a team and hire people within your company, you need to obtain a so-called Employer Identification Number (EIN) for each of them. You need it for setting up a business bank account too.
In California, there is obviously a personal income tax, and three types of income taxes on businesses: a corporate tax, a franchise tax, and an alternative minimum tax. See below which applies to your entity:
- Sole Proprietorship - personal income tax only
- General Partnership - personal income tax only
- LLC - franchise tax
Find more information on business taxes on the California Department Of Tax and Fee Administration website.
Generate profits & enjoy independence
Hurray! You are all set with your brand-new business in California. As you are an independent business owner now, it is time to follow your business plan and start bringing satisfactory profits. Not sure how to do it? IKOL is an up-to-date software that helps manage all your business tasks and formalities. You can also easily get your domain through IKOL to enhance your online presence. Try and see on your own!
