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Full Guide To Get Business License In California (2024)

Discover how to obtain a California business license with our easy guide. We’ll guide you step by step, covering important things to keep in mind.

No matter what you sell, there are government rules for running your business. Getting a business license is essential to be recognized officially by the state. Here’s all you should understand.

Do you have to get a license for your business in California?

In California, you don’t need a statewide business license, but you usually require a business license at the city or county level to operate. The only statewide license is the “seller’s permit.” So, in most cases, you’ll still need a business license to operate in California.

Do You Need a Business License in California?

In many places in California, businesses need a license for taxes. But in some rural areas, this rule might not apply. Besides the local business license, you might also need other permits based on what your business does or where it’s located.

For Example, If your company operates in many cities or areas, you must get a business permit at your main location first. After that, get any extra permits you need for the other places where you do business.

california business license

Different Kinds of Business Licenses

Most businesses in California must have a license or permit to operate legally. Figuring out the right one for your business and location can be tricky.

You might need licenses from the city, county, state, or even the federal government, depending on your type of business. Thankfully, the CalGold website can help. It lets you search by city, county, and business type to find out which permits you need and which agencies handle them.

Californian Local Business Licenses

To start your business, the first license you’ll need is a business operating license. It’s sometimes called a “business license” or “general license” and usually includes a business tax certificate. These licenses are common for all types of businesses and are similar in all cities and counties in California.

If your business name doesn’t match the one you registered with the Secretary of State, you might need a Fictitious Business Name (FBN) or Doing Business As (DBA) statement.

Certain businesses, like restaurants, coffee shops, and fitness facilities, need a public health operating license. People working in these places, such as chefs and servers, may also need a food handlers certification, which involves some training and testing.

For agricultural operations using pesticides, a pesticide applicator’s license is likely required. Getting this license may involve studying and passing a test.

Extra Local Licenses

Certain permissions may be needed at the city or county level when beginning your business in California. These include:

  • Zoning and land use permits: You’ll require these if the land you’re using isn’t zoned correctly for your type of business.
  • Building permits: If you’re constructing a new building or renovating an existing one, you’ll probably need a building permit.
  • Fire department permits: If your business uses flammable materials and is open to the public, like restaurants, gyms, daycares, hotels, or retirement homes, you’ll need these permits.

While these permits differ from business licenses, it’s important to check if you need them before starting your business.

California Licenses for Everyone in the State

In California, some businesses need statewide licenses, not just local ones. The most common is a seller’s permit, also known as a sales and use permit. Businesses selling or renting any real stuff must get this permit before their first sale.

If your business deals with alcohol—selling, making, importing, or distributing—you must get the right license(s) from the California Department of Alcoholic Beverage Control. Also, you need to register to pay an Alcoholic Beverage Tax with the Department of Tax and Fee Administration.

You might need other California state licenses for your business. If you’re unsure, check the CalGold permitting website for more information.

Government Permits and Licenses

Small businesses usually don’t require federal licenses or permits. However, depending on your business’s size or activities, you might need one. Some common areas that might need federal licenses are:

  • Agriculture
  • Selling, serving, distributing, or importing alcohol
  • Aviation
  • Firearms, ammunition, and explosives
  • Fish and wildlife
  • Commercial fisheries
  • Maritime transportation
  • Mining and drilling
  • Nuclear energy
  • Radio and television broadcasting
  • Transportation

california business license

How to Get a California Business License?

Step 1: Give your company a name and set it up.

To get a California business license, start by choosing and setting up your company’s name. If you’re just starting out, use our guides for help on beginning a business, forming an LLC, or getting the Best LLC Services. Once your business is underway, gather these important details for your application:

  • Business name
  • Your EIN (Employer Identification Number) or SSN
  • Business type (LLC, partnership, corporation, etc.)
  • Business address and phone number
  • Plan for a business with money coming in and going out.
  • COI for your business insurance policy
Step 2. Request a business license for California.

After getting all the info you need, go ahead and apply for a California business license or a business tax certificate in your city or county. Check your city’s website or your county’s site if you live in an unincorporated area. Fill out the right forms to start the process.

Step 3. Find out which other local permits might be needed.

Visit CalGold.ca.gov to find out which other licenses, either local or statewide, might apply to your business. Then, provide the necessary information to apply for those licenses.

Step 4. Request any extra licenses you might need for the entire state.

If you’re renting or selling things for your business, you’ll need a seller’s permit. This is controlled by the state, and sometimes your local county. You might also have to get a liquor license from the state.

Step 5: Request government permits and tax status (if needed).

In the end, even though the national government doesn’t make it necessary to get an overall business license, you might need to get licenses from certain government groups based on your business type. Industries like farming, fishing, firearms, alcohol sales, and transportation commonly need federal permits.

How Expensive is a Business License in California?

Getting a business license in California can cost differently depending on where you are. Some places don’t charge small businesses anything. It can be as low as $15 to $30 or as high as a few hundred dollars. This fee needs to be paid each year or every few years when you renew your license.

For bigger businesses, they might charge a percentage of your yearly earnings and the number of workers you have, instead of a fixed amount. Smaller businesses usually just pay a set fee. Sometimes, there might be franchise taxes, but they’re not the same as business license costs.

Renew Your Business License in California

In California, every place that gives out business licenses does things a bit differently, but most of them need you to renew your license every year or every two years. If you’re unsure, just get in touch with the same place where you first got your business license.

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