Does an LLC Need a Business License in California?

Licensing Requirements for California LLC

California doesn’t have a general business license at the state level. However, your business may need occupational licenses, local business licenses, or permits. The filing fee for licenses will vary depending on where you’re doing business and what industry you’re in. Licensing in California depends on the type of business and the industry you choose.

To obtain a license, you have to meet all applicable local, state, and federal requirements. The type and cost of licenses depend on your type of business. Cities and counties may impose their own regulations, so research and comply with local ordinances.

Forming an LLC in California

Unlike a sole proprietorship or partnership, the LLC is a separate legal structure that provides asset protection. To get started, you’ll need to pick a name, choose a registered agent, and file your Articles of Organization and Initial Statement of Information with the California Secretary of State (which can cost between $90 and $120 in processing fees).

To operate your LLC in California, you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc. It is legal to operate as a sole proprietorship without registering your company. However, LLCs are popular for their simplicity, flexibility, and asset protection.

In California, your LLC needs a registered agent authorized to accept legal, tax, and financial documents on behalf of your business and communicate with the state. The purpose is to ensure compliance with state laws. A California LLC offers limited liability protection and tax options to get started in just 5 steps. Use our guide to ensure you have everything to start your California LLC.

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