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California splits business paperwork three ways. The Secretary of State registers the entity, the tax agencies register you for taxes, and licenses and permits come from whichever agency covers your activity. Cities and counties may add their own. There is no single state business license to apply for.
Where do you find the licenses you need?
The Secretary of State's business entities FAQ says it does not issue licenses or permits. It sends you to CalGold, an online database with links and contact details for agencies that issue business licenses, permits and registrations at all levels of government.
The FAQ also says the order: form or register the entity online first, then get the licenses and permits the entity needs. Use CalGold to see what applies to your type of business and location.
Do you need a seller's permit?
If you sell goods, probably. The California Department of Tax and Fee Administration publishes a guide called Your California Seller's Permit. It says you must get a permit if you are in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax at retail. Wholesalers and retailers both apply.
The permit is free. The Department may ask for a security deposit in set cases: when the law requires it, when a permit was revoked, or when there is a history of nonpayment. If you make sales only for a short period, such as a seasonal sale, the guide describes a temporary seller's permit.
What does the state charge to keep an LLC active?
Do not confuse these with license fees.
- Formation. The Articles of Organization, Form LLC-1, cost $70.
- Statement of Information. $20 for an LLC, due every two years in the month of registration. The Franchise Tax Board assesses any late penalty.
- Franchise tax. Most businesses pay a minimum of $800 each year to the Franchise Tax Board, per the Secretary of State.
Our California LLC cost guide breaks down the first-year total, and the California LLC guide walks through the filing.
In what order should you register?
- Form the LLC with the Secretary of State.
- Get the EIN from the IRS.
- Search CalGold for the permits that match your activity and city.
- Apply for a seller's permit if you sell taxable goods.
- Plan for the first $800, which is due by the 15th day of the fourth month after filing.
- Set a reminder for the Statement of Information.
The Secretary of State says an LLC stays active through the Statement of Information plus state taxes. A $250 penalty applies for not filing the Statement of Information. Permits and tax accounts sit with other agencies, so each one needs its own follow-up.
Where do you check a license?
We did not read a California license verification tool, so we do not link one. CalGold shows which agency to ask. For the LLC's own status, use the search described in our California business search guide. For general tips, see business license lookup.
What about a trade name and a tax ID?
A brand name that differs from your LLC name is a county fictitious business name filing, not a license. Read the California DBA guide. For the EIN, see how to get an EIN, and for tax numbers see state tax ID lookup.
What this page does not cover
City and county business taxes, professional licenses, health permits and sales tax rates are outside it. We did not read those sources. This is not legal or tax advice.