California business license
California business license requirements
- Owners inside city limits get their California business license from city hall and register with state agencies such as the Secretary of State.
- Limited liability companies (LLCs) pay the Secretary of State $70 to form and the Franchise Tax Board (FTB) $800 a year (2026).
- Employers register with the Employment Development Department (EDD) within 15 days of paying more than $100 in wages in a calendar quarter (2026).
A North Park cafe owner asking "do I need a business license in California" gets it from the City of San Diego, because the Secretary of State issues no business licenses or permits.
For regulated trades, the Governor's Office of Business and Economic Development lists the extra permits and the agencies that issue them in CalGold.
How to start a small business in California
Sole proprietors open a business in California with no Secretary of State filing or annual LLC tax.
Form the LLC or corporation
A La Jolla consultant pays the Secretary of State $100 to form a corporation (2026). Each entity then files a California statement of information, an officer and address report, within 90 days.
Pay the annual LLC tax
Owners pay their first annual LLC tax on Form 3522 by the 15th day of the fourth month after filing (2026). A Carlsbad LLC formed March 10, 2026, pays by June 15, 2026.
Apply for a seller's permit
Retailers, from Gaslamp boutiques to Oceanside surf shops, need a San Diego seller's permit from the California Department of Tax and Fee Administration to sell or lease taxable goods.
Register as an employer
Employers get a free employer identification number (EIN) from the IRS after forming any LLC or corporation, then register with EDD. City of San Diego employers also pay at least the San Diego minimum wage and handle California employer payroll taxes through EDD.
How to open a business in San Diego
The San Diego County Assessor/Recorder/County Clerk records business names, and the county's 18 cities each set license rules.
Fictitious business name (DBA)
Owners and companies trading under another name file a fictitious business name, or DBA, within 40 days of opening. The County Clerk charges $54 for one name and one owner in 2026, and filers then publish a newspaper notice once a week for four weeks.
City of San Diego business tax
Every business in the City of San Diego, home-based ones included, needs a Business Tax Certificate, the city's business license, from the Office of the City Treasurer.
Chula Vista, Escondido, Carlsbad and Oceanside
Each issues its own business license through city hall.
Unincorporated San Diego County
The County of San Diego requires no business license in unincorporated areas such as Ramona and Lakeside, though owners there may still need county permits.
First-year franchise tax for LLCs and corporations
Corporations owe no FTB minimum franchise tax in their first taxable year, unlike LLCs (2026). A CPA can compare both before filing; start with how to choose a CPA.
