How to Get a Business License in California (2026 Guide)

California does not issue a general state business licence. Business licences are handled locally: by the city if your business is inside city limits, or by the county if it is in an unincorporated area. On top of that, you may need a seller's permit from the state and a professional licence for regulated work. This guide walks a new California LLC through each step.

Step 1: Form the LLC and know the yearly state costs

A California LLC is formed by filing Articles of Organization (Form LLC-1) with the Secretary of State for $70. Two follow-up obligations catch many new owners out:

• Statement of Information (LLC-12): $20, due within 90 days of formation and every two years after that.
• $800 annual tax: every LLC pays the Franchise Tax Board at least $800 a year, starting in its first year — the temporary first-year exemption only covered 2021–2023. The first payment is due by the 15th day of the 4th month after you file.
• LLC fee: once total California income reaches $250,000, an extra fee applies on top of the $800 — $900 at $250,000–$499,999, rising to $11,790 at $5 million or more.

See our California LLC guide for every step, then get your free EIN from the IRS.

Step 2: Seller's permit (CDTFA)

If your business sells or leases goods that would normally be subject to sales tax, you need a seller's permit from the California Department of Tax and Fee Administration. The permit is free, although CDTFA may ask for a security deposit. If you only sell at one location for 90 days or less (a market stall or seasonal pop-up, for example), you can get a free temporary permit instead. A seller's permit is not a business licence — you still need your local one.

Step 3: City or county business licence

This is California's real "business licence". Most cities require it, and each city sets its own rules and fees. Examples from the largest cities:

• Los Angeles: every business operating in the city needs a Business Tax Registration Certificate from the Office of Finance — including anyone who works in the city 7 or more days a year. Businesses with worldwide gross receipts of $100,000 or less can claim the Small Business Exemption, but only if they register and file their renewal on time. Renewals are due on 1 January.
• San Francisco: register with the Treasurer & Tax Collector within 30 days of starting business. For 2026–27 the fee is $55 for up to $100,000 of San Francisco gross receipts and $95 up to $250,000, plus a $4 state fee. The registration year runs 1 April to 31 March.
• San Diego: a Business Tax Certificate costs $34 for businesses with 12 or fewer employees, plus a $4 state fee.
• San José: every business must register, and payment is due within 90 days of starting business. The amount depends on the type of business.

If your business is outside city limits, apply to your county instead. The state's free CalGold tool lists the local agencies and permits for your business type and location.

Step 4: State professional licences

The Department of Consumer Affairs oversees around 40 boards and bureaus that license professions such as healthcare, architects, engineers, barbers and cosmetologists, and private investigators. Contractors are licensed by the Contractors State License Board: since 1 January 2025 you need a licence for jobs of $1,000 or more (labour and materials), and for smaller jobs too if they need a permit or you use employees. Alcohol sales are licensed by the Department of Alcoholic Beverage Control.

Hiring staff: EDD registration

Once you pay more than $100 in wages in a calendar quarter, you must register with the Employment Development Department within 15 days.

Home-based businesses

Home businesses still need the local business licence or tax registration. Cities also set home-occupation rules. In Los Angeles, for example, there can be no signs visible from outside, at most one non-resident employee, at most two deliveries or pickups a day, and no more than one client visit per hour between 8am and 8pm. Many cities require a home occupation permit, so check your city's planning department.

Fictitious business name (DBA)

If your LLC trades under a different name, file a fictitious business name statement with the county clerk where your business is based — in Los Angeles County the fee is $26 for one name. The statement must then be published once a week for four consecutive weeks in an approved newspaper; state law gives you 45 days after filing to start. It lasts five years.

Checklist and costs

1. Form your California LLC — $70 (details).
2. File the Statement of Information within 90 days — $20.
3. Get your EIN — free from the IRS.
4. Get a seller's permit if you sell taxable goods — free.
5. Get your city (or county) business licence or tax registration.
6. Obtain any professional or contractor licence for your work.
7. Pay the $800 annual tax by the 15th day of the 4th month, then every year.

Not sure which local licences apply to you? Our business licence research service identifies every federal, state, county and city requirement for your California LLC, with forms and fees. Or start with the company: form your California LLC now.

General information, not legal or tax advice. Fees and rules are set by each city, county and agency and change over time — confirm with the issuing office before you apply. Checked October 2026.