Looking to Start a Business in California? Here’s What You Should Know
Starting a business in California can mean embarking on the opportunity of a lifetime. The experience will likely bring you many moments of satisfaction and joy, but in order to launch a successful business, it is critical to begin the process correctly. The following is a brief overview on the most important steps you will need to take in order to begin your own business.
- Understanding the Legal Structure of Your Business
In California, the most common structures for a small business are the following:
- Sole proprietorships
- Partnerships
- Limited liability companies, or LLCs
- Corporations
There are also other legal structures, such as limited partnerships or S corporations. It is important to understand what type of business structure will offer the liability and asset protection your business will need.
- Selecting a Business Name
Both limited liability companies and corporations need a unique business name that is distinguishable from other entities already filed through the California Secretary of State. It should be noted that there are name requirements for limited liability companies and corporations.
- Licensing and Permits
If you are in the business of selling merchandise, you will need to register with the California State Board of Equalization in order to obtain a seller’s permit. If the business will hire employees, you will need to register under the California Employment Development Department. Both of these measures can be accomplished online.
When the business employs people or is to be taxed separately from you, you will need to obtain an EIN, or employer identification number from the IRS. You should know that even if you are not legally required to obtain an EIN, there are benefits in doing so.
Finally, every business in the State of California will need to obtain a general business license from the municipality where the business will be located. When the business is located in an unincorporated town, the license will need to be issued by the county where the business will be located.
- Obtaining Insurance
Insurance is almost always a good idea to have for most businesses. There are a multitude of business licenses that can benefit your company but before selecting an insurance, it is important to know which insurance policies will give your company the greatest benefit.
Speak to an Experienced Attorney
If you are an entrepreneur seeking to start your own business company, you will need to begin the process with a strong foundation in order to avoid preventable complications. Consider speaking to an experienced attorney who can help you protect your assets as you begin this life changing journey.
The attorneys at the Knez Law Group, LLP have many years of dedicated experience helping entrepreneurs start a new business venture. If you are seeking to start a business, speak to a knowledgeable business formation and incorporation attorney today. Failing to file the right paperwork can be very costly; seek the legal support of a skilled law firm that will help you protect your assets. Contact the attorneys at the Knez Law Group, LLP for a free case evaluation.
Matthew J. Knez graduated from the University of Redlands in California where he earned a Bachelor of Arts degree in Creative Writing. He went on to pursue his Law Degree at the University of LaVerne, College of Law in Ontario, California. While pursuing his law degree he earned various awards, including CALI Award in Torts and he was on the Dean’s List. Mr. Knez was also a member of the Justice and Immigration Clinic where he worked with people seeking asylum into the United States from countries where they had experienced persecution or threat of persecution. Additionally, Mr. Knez was a member of Law Review where he was an Associate Editor and published a Law Review article on California family custody move-away cases.