Start My Business
1. Choose a Business Idea
Identify a business concept that aligns with your skills, interests, and market demand. Consider factors like competition, market size, and potential for growth.
2. Create a Business Plan
Outline your business goals, target market, marketing strategy, financial projections, and organizational structure. A business plan can be helpful for securing funding and guiding your business growth.
3. Decide on a Business Structure
Choose a legal structure for your business. Common options include:
- Sole Proprietorship: Owned by one person, with no formal business entity.
- Partnership: Owned by two or more people, with shared responsibilities.
- Limited Liability Company (LLC): Provides liability protection for owners.
- Corporation: Offers liability protection, with more complex structure and compliance requirements.
Each structure has different tax and legal implications. Consider consulting with a business attorney or accountant for advice.
4. Choose a Business Name
Select a unique business name that is not already in use by another California business. You can check name availability with the California Secretary of State. If you plan to operate under a different name (a “Doing Business As” or DBA), you’ll need to file a fictitious business name statement.
5. Register Your Business
Depending on your business structure, you’ll need to register with the California Secretary of State:
- Sole Proprietorship and General Partnership: No state-level registration required, but check local requirements.
- LLC and Corporation: Register articles of organization/incorporation with the California Secretary of State.
6. Obtain an Employer Identification Number (EIN)
Apply for an EIN with the IRS if you plan to hire employees, operate as a corporation or partnership, or need a separate tax ID for your business.
7. Obtain Business Licenses and Permits
Research the specific licenses and permits required for your business. This may include local business licenses, health department permits, professional licenses, and more. Requirements vary based on industry and location.
8. Register for State Taxes
9. Open a Business Bank Account
Separate your personal and business finances by opening a business bank account. This helps with accounting and protects your personal assets.
10. Obtain Business Insurance
Consider business insurance to protect your business from risks such as liability, property damage, or workers’ compensation claims. The type of insurance required depends on your business structure and industry.
11. Set Up Accounting and Recordkeeping
Establish a system for tracking income, expenses, and taxes. Use accounting software or hire an accountant to ensure accurate financial records and compliance with tax laws.
12. Market Your Business
Develop a marketing strategy to reach your target audience. Consider online marketing, social media, print materials, networking, and other methods to promote your business.