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Starting A Business In California
By selfemployedblog | March 11, 2006
I wanted to write this article for anyone who wonders what are some of the necessary steps for starting a small business in California. I had to research what steps to take when I started my freelance business a couple years ago. First off, I had to choose a business structure. It was simple since I would be working alone, I chose a sole proprietorship. It is the simplest of all business structures. The IRS views you and your business as one. If your business incurs debt, it’s your debt too. The same goes for any profit that you make as well.
The second step was to complete a ficticious business name filing (also known as DBA - Doing Business As). You don’t have to do this step if your business name is also your real name. For instance, “Joe Schmoe Bicycles”. Otherwise, you will need to complete the paperwork for a DBA filing and have your ficticious business printed in your local newspaper or other local publications for four consecutive weeks. It’s probably a good idea to have your DBA filing done before you open a business checking account at your bank. Some banks require it before they open a business account.
You will also need to apply for a business license in your city. Fees vary and my license cost $25 to process. You have to renew it once a year. If you decide to sell physical goods, you will need to obtain a seller’s permit from the Board of Equalization.
Those are the essentials as far as paperwork for a small business in California. It is also a good idea to seek professional help as far as lawyers and accountants go if you are unsure about legal issues and financing. You can get more help and advice from the Small Business Administration web site.
Topics: Self Employment |