Last updated: September 2025
Quick Help (Start Here)
- City business license (Business Tax Certificate): Apply through the City of Modesto. Use CalGold to confirm the exact office, forms, and fee schedule for Modesto and your business type. Source: CalGold – City/County Permit Contacts (official State of California permit portal).
- Check your zoning before you sign a lease. Confirm your address is allowed for your business type with the City of Modesto Planning/Zoning. Start from the City website. Source: City of Modesto – Official Site.
- If you sell taxable goods, you need a California Seller’s Permit (free). Register before you start selling. Source: CDTFA – Register for a Permit and CDTFA – Find Your Sales Tax Rate.
- Register your legal entity (LLC/corporation) with the California Secretary of State. Many sole proprietors don’t file with the state. Source: California Secretary of State – bizfile Online.
- Get your EIN (free) from the IRS if you hire employees or want a business bank account under your business name. Source: IRS – Apply for an EIN Online.
- If you hire employees, register with EDD for California payroll taxes. Source: EDD – Payroll Taxes.
- If you use a business name not your own personal legal name, file a Fictitious Business Name (DBA) with Stanislaus County and publish it in a newspaper for 4 weeks. Source: Stanislaus County Clerk‑Recorder and state rule in California BPC §17917 (FBN publication).
- Typical unavoidable cost: California minimum annual tax for most LLCs, LPs, and corporations is $800 each year. Source: California FTB – LLC Annual Tax.
- Help by phone: CDTFA sales tax 1‑800‑400‑7115, IRS business line 1‑800‑829‑4933, EDD employer tax assistance 1‑888‑745‑3886, CSLB contractors 1‑800‑321‑2752.
What “business license” means in Modesto
The “business license” in the City of Modesto is a local Business Tax Certificate. It’s not a professional license. Many businesses still need state or county permits (food, contractor, cosmetology, auto repair, alcohol, etc.) on top of the city certificate. The exact steps depend on where you’re located (city limits vs. unincorporated county), what you sell, how you operate (home-based or storefront), and whether you have employees.
- City/County finder for permits and contacts: CalGold – State of California Permit Portal (official, maintained by GO‑Biz).
- City of Modesto home page (departments, planning, permits, business tax): City of Modesto – Official Site.
- If your address is outside Modesto city limits (unincorporated Stanislaus County), you may need county approvals before any city steps. Check: Stanislaus County – Official Site.
Reality check:
- The city business license alone doesn’t let you do activities that need state licenses (e.g., contractor work, auto repair, serving alcohol). Each has separate rules, inspections, and timelines.
- Zoning and building code issues delay openings more than anything else. Verify the site first.
- Timelines vary by workload and your paperwork quality. Expect a few days to a few weeks for basic city licensing if zoning is compatible and no plan reviews are needed. Complex uses (restaurants, bars, manufacturing) take longer.
At‑a‑Glance: What you’ll likely need
Use this table as a checklist. Always verify using the linked official sources.
| Item | Who issues it | Typical cost | When you need it | Where to get it |
|---|---|---|---|---|
| City Business Tax Certificate (Modesto “business license”) | City of Modesto (Finance/Revenue) | Varies by business type and size; verify fee schedule | Before operating in city limits | City of Modesto – Business/Finance and CalGold – City/County Contacts |
| Zoning clearance / Home Occupation | City of Modesto Planning | Varies; may require a Home Occupation Permit for home‑based | Before applying for city license or signing a lease | City of Modesto – Planning/Zoning |
| Fictitious Business Name (DBA) | Stanislaus County Clerk‑Recorder | Varies by county fee schedule; plus newspaper publication cost | If not using your legal personal name | Stanislaus County Clerk‑Recorder |
| Seller’s Permit | California Department of Tax and Fee Administration (CDTFA) | $0 (no fee; deposit may be required) | If you sell or lease taxable goods | CDTFA – Register |
| EIN (Employer ID Number) | IRS | $0 | If you have employees or want a business bank account under business name | IRS – Apply for EIN |
| Entity registration (LLC/corporation) | CA Secretary of State (SoS) | Fees depend on entity and filing; verify on SoS site | If you form an LLC or corporation | SoS – bizfile Online |
| Annual minimum state tax | California Franchise Tax Board | $800/year for most LLCs, LPs, LLPs, corporations | After formation (some exceptions may apply) | FTB – LLC Annual Tax |
| Employer payroll registration | California EDD | $0 | If you pay employees in CA | EDD – Payroll Taxes |
| Health permit (food) | Stanislaus County Environmental Resources (DER) | Varies by facility type | If you handle food | Stanislaus County – Environmental Resources |
| Contractor license | Contractors State License Board (CSLB) | Varies; application, exam, bond | If contract value is $500 or more (labor + materials) | CSLB – Licensing |
| Alcohol license | CA Dept. of Alcoholic Beverage Control (ABC) | Varies by license type | If selling/serving alcohol | ABC – Licensing |
Step 1: Confirm zoning for your address (don’t skip)
Action first:
- Before you lease or buy property, confirm the address is zoned for your exact business use with the City of Modesto Planning/Zoning.
Why it matters:
- If the use isn’t allowed, you’ll face delays, costly changes, or denials.
- Certain uses require a Conditional Use Permit (CUP), parking studies, or building improvements.
How to check:
- Start at the City site: City of Modesto – Official Site. Look for Planning/Zoning or Permitting.
- Use CalGold to find local contacts: CalGold – Modesto Contacts.
- Ask about your exact use (e.g., “nail salon with 4 chairs,” “small coffee shop with seating,” “auto detail in warehouse,” “small daycare”). Different uses can have different requirements in the same zone.
Typical documents to prepare:
- Property address (APN if you have it).
- Short written description of operations (hours, customer volume, deliveries, equipment, number of employees, any outdoor activity, parking needs).
- Sketch/floor plan if interior changes are planned.
Timeline:
- Basic zoning confirmation can be same day to a few business days.
- CUPs or variances can take weeks to months.
Reality check:
- Utility capacity (grease interceptors for restaurants, electrical load for manufacturing), fire sprinklers, ADA compliance, parking ratios, and noise limits often drive cost and time more than the business license itself.
What to do if this doesn’t work:
- Ask Planning for similar zones nearby or alternative sites.
- Use the SBDC to help evaluate sites and lease clauses that shift build‑out costs to landlords. Local SBDC finder: SBA – Find Local Assistance (SBDC, SCORE, WBC).
- If you need to operate in county jurisdiction instead, confirm with Stanislaus County Planning for zoning in unincorporated areas.
Step 2: Choose your structure and (if needed) register with the CA Secretary of State
Action first:
- Choose your business structure (sole proprietor, partnership, LLC, corporation). If forming an LLC or corporation, file with the California Secretary of State.
Where to file:
- Online: California Secretary of State – bizfile Online (official).
Key filings and typical fees (confirm on SoS site):
- Articles of Organization (LLC). Historically $70 filing fee; verify current fees: SoS – LLC Filings and bizfile Online.
- Articles of Incorporation (stock corporation). Historically $100 filing fee; verify current fees: SoS – Corporation Filings.
- Statement of Information. Due within 90 days of formation for LLCs and corporations, then every two years for LLCs and annually for corporations. Fees vary by entity (historically $20 for LLCs and $25 for corporations). Verify at: SoS – Statements of Information.
- Name reservation (optional). Historically $10; verify at: SoS – Name Reservation.
Taxes to plan for:
- California Franchise Tax Board annual minimum tax for most LLCs, LPs, LLPs, and corporations: $800 per year. See: FTB – LLC Annual Tax.
- LLCs with California-source income may also owe an LLC fee based on total California income. See: FTB – LLC Fee.
Required documents (typical):
- Completed formation documents (Articles) and registered agent information.
- Statement of Information (within 90 days).
- Operating Agreement (LLC) or Bylaws (corporation) – not filed but needed for bank accounts and internal governance.
Timelines:
- Online filings can be same day to a few business days, depending on SoS workload.
- Paper filings can take longer.
Real-world example:
- A two‑member LLC for a local landscaping company files Articles online via bizfile, gets approved in 1–3 business days, files the initial Statement of Information within 90 days, and budgets $800 for the FTB annual tax even in a slow first year.
What to do if this doesn’t work:
- If your filing is rejected, use the specific error notes on bizfile to correct. For help, try the SBDC (free) via SBA – Local Assistance.
- If you’re unsure about liability/tax impacts, consult a CPA or attorney. The State Bar’s lawyer referral can help: California Lawyers Association – Find a Lawyer or check your local county bar association.
Step 3: Get an EIN (free)
Action first:
- If you plan to hire employees, open a business bank account, or want vendor onboarding to go smoothly, apply for an EIN.
Where:
- Online with the IRS (free): IRS – Apply for EIN.
Cost:
- $0.
Documents:
- Responsible party name, SSN/ITIN, and your entity details (if you formed an LLC/corporation).
Timeline:
- Immediate issuance online for most applicants.
What to do if this doesn’t work:
- If online isn’t available, you can fax Form SS‑4. See: IRS – Form SS‑4.
- For help: IRS Business & Specialty Tax Line: 1‑800‑829‑4933.
Step 4: Register for California payroll taxes (if you hire)
Action first:
- If you will pay employees in California, register with EDD for payroll taxes (UI, ETT, SDI, and PIT withholding).
Where:
- EDD e‑Services for Business: EDD – Payroll Taxes.
Cost:
- $0 to register (you will owe payroll taxes based on wages).
Documents:
- EIN, legal entity details, business start date, and payroll start date.
Deadlines:
- Register within 15 days of paying over the threshold to become an employer (thresholds vary — check EDD rules). See: EDD – Employer’s Guide.
What to do if this doesn’t work:
- Call EDD Taxpayer Assistance Center: 1‑888‑745‑3886.
- Use SBDC or SCORE mentoring for payroll setup and compliance: SBA – Resource Partners.
Step 5: Get your Seller’s Permit (if you sell taxable goods)
Action first:
- If you sell, lease, or rent tangible personal property that’s normally taxable in California, get a Seller’s Permit.
Where:
- CDTFA Online Registration: CDTFA – Register.
Cost:
- $0 fee for the permit. CDTFA may require a security deposit based on expected tax liability (refundable if accounts are in good standing). See: CDTFA – Seller’s Permit.
Find your sales tax rate:
- Rates are address‑specific due to district taxes. Use the official tool: CDTFA – Find a Sales and Use Tax Rate. Do not rely on a ZIP code alone.
Documents:
- EIN/SSN, business address, projected sales, and ID.
Timeline:
- Often same-day online; sometimes 1–3 business days if review is needed.
Reality check:
- Filing frequency (monthly/quarterly/annual) depends on your sales volume. Late filings trigger penalties and interest.
What to do if this doesn’t work:
- Call CDTFA Customer Service: 1‑800‑400‑7115 (TTY: 711). Official contact: CDTFA – Contact Us.
Step 6: Apply for the City of Modesto Business Tax Certificate (“business license”)
Action first:
- Once zoning is confirmed, apply for your City business license.
Where:
- Start from the City site: City of Modesto – Official Site. Navigate to Business/Finance/Revenue or “Business Licenses.” If unclear, use the official State directory to find Modesto’s license office and forms: CalGold – City/County Contacts.
Cost:
- Fees vary by business type, size, and sometimes gross receipts or employee count. Always verify the current fee schedule and any renewals on the City page.
Common info you’ll need:
- Business name and address (if home‑based, note that the City may have home‑occupation rules).
- EIN or SSN, state entity number (if LLC/corp).
- Description of business activity.
- Number of employees.
- Start date in Modesto.
Typical timelines:
- Straightforward office‑based or home‑based businesses: a few business days if complete.
- Uses requiring inspections (e.g., fire, building) or extra approvals take longer.
Reality check:
- Plan for possible Fire Prevention or Building Safety clearances for certain occupancies. Verify if your business triggers inspections.
What to do if this doesn’t work:
- If your application stalls, ask the City which department is holding it (Planning, Fire, Building, Finance). It’s okay to request a direct contact.
- If you cannot find the right portal, use CalGold to retrieve Modesto’s business license contact and call ahead.
Step 7: File a Fictitious Business Name (DBA) if needed
Action first:
- If you operate under a name different from your legal personal name (sole prop) or legal entity name (LLC/corp), you must file a Fictitious Business Name (FBN) with Stanislaus County and publish it.
Where:
- Clerk‑Recorder: Stanislaus County Clerk‑Recorder – FBN.
Publication rule (state law):
- You must publish the FBN in a legally adjudicated newspaper once per week for 4 consecutive weeks, and the first publication must start within 30 days of filing. Source: California BPC §17917.
Cost:
- County filing fee plus publication cost set by the newspaper. Fees vary; confirm on the Clerk‑Recorder site.
Documents:
- Owner(s) name and address, business name, business address. If an LLC/corp, the CA SoS file number.
Timeline:
- Filing: same day to a few days.
- Publication: 4 weeks minimum.
- Proof of publication must be filed as directed by the county/newspaper.
What to do if this doesn’t work:
- If your chosen name is rejected or already in use, pick a new one. The Clerk‑Recorder can explain naming rules.
- If you miss the 30‑day publication window, file again or follow the Clerk’s guidance to get back into compliance.
Step 8: Industry‑specific permits and inspections
Action first:
- Identify every state/county/City permit needed for your specific business type using CalGold. It routes you to the correct agencies. Source: CalGold.
Common Modesto/California examples:
- Restaurants and food prep (health permit). Stanislaus County Environmental Resources issues permits and inspects facilities. Source: Stanislaus County – Environmental Resources (DER).
- Alcohol sales or service. California Alcoholic Beverage Control (ABC) license; mandatory 30‑day notice posting, background review, and local input. Source: ABC – Licensing Overview.
- General contractors and specialty trades. Contractors State License Board (CSLB) license required for jobs $500 or more (labor + materials). Source: CSLB – Who Needs a License.
- Auto repair. Bureau of Automotive Repair (BAR) registration required. Source: BAR – Auto Repair Program.
- Cosmetology/barbering. State Board license required for professionals and establishments. Source: Barbering & Cosmetology – Licensing.
- Weights & measures. If you use scales or meters for commercial transactions, contact the county sealer of weights and measures. Start with: CDFA – Division of Measurement Standards.
Timelines:
- Health permits: plan 2–4+ weeks depending on plan review and inspections.
- ABC licenses: at least 30 days for the posting period; often 45–90+ days overall depending on license type and background check. See: ABC – License Process.
- CSLB: application, exam(s), bonding, and background checks can take several weeks to months. See: CSLB – Application Process.
What to do if this doesn’t work:
- Use CalGold to confirm agency contacts and required steps: CalGold.
- Ask for a “pre‑application” meeting with the relevant department (e.g., Health, ABC) to spot issues early.
Step 9: Home‑based businesses and home occupation rules
Action first:
- If you operate from home within Modesto city limits, confirm Home Occupation rules and whether a Home Occupation Permit is needed.
Where:
- City of Modesto Planning/Home Occupation information via the City site: City of Modesto – Official Site. If unclear, use CalGold to retrieve the City’s contact for home occupations.
Common limits (typical in California; verify locally):
- No excessive traffic, noise, or signage.
- Limited employees and client visits.
- No hazardous materials or certain equipment.
- Some activities (food production, auto repair) have special restrictions.
What to do if this doesn’t work:
- If your home use isn’t allowed, ask Planning about alternatives: small office co‑working, light‑industrial flex space, or retail suites permitted for your business type.
- If you are outside city limits, confirm Stanislaus County home occupation rules via Stanislaus County – Planning/Permits.
Step 10: Building, fire, sign, and occupancy permits
Action first:
- Before build‑out, adding seats, installing a hood, erecting a sign, or changing the use of a space, contact the City’s Building and Fire departments.
Where:
- City of Modesto – Building, Fire, and Planning start point: City of Modesto – Official Site.
What to review:
- Change of Use/Occupancy requirements.
- Tenant improvements and plan reviews.
- Fire code compliance (exits, alarms, sprinklers).
- Sign permits.
Timelines:
- Simple over‑the‑counter permits: a few days.
- Plan review and inspections: several weeks to months depending on complexity.
What to do if this doesn’t work:
- Ask for a plan check meeting or “pre‑submittal” to clarify corrections.
- Consider hiring a local architect or engineer for code‑heavy projects and shop drawings (especially for restaurants and assembly uses).
What it costs (and how to budget)
Below is a planning view. Verify each fee via the official links. Do not sign a lease until you understand build‑out and permit costs.
| Cost item | Typical range | What drives cost | Source |
|---|---|---|---|
| City Business Tax Certificate | Varies based on business class, gross receipts, or employees | Business type/size; renewals annually | City of Modesto and CalGold |
| California Seller’s Permit | $0 (security deposit may apply) | CDTFA review of expected tax | CDTFA – Seller’s Permit |
| EIN | $0 | None | IRS – EIN |
| Entity filing (LLC/corp) | Verify on SoS; historically LLC $70, corp $100 | Expedited service, paper vs. online | CA SoS – bizfile Online |
| Statement of Information | Verify on SoS; due within 90 days | Entity type | CA SoS – Statements |
| FTB annual minimum tax | $800 per year (most entities) | Entity type and income | FTB – LLC Annual Tax |
| FBN filing + publication | County filing fee + 4‑week publication | Number of owners; newspaper | Stanislaus Clerk‑Recorder + BPC §17917 |
| Health permit (food) | Varies by facility and risk category | Menu/processes; plan review | Stanislaus DER |
| CSLB contractor license | Application/exam fees + bond | Classification(s), experience, fingerprinting | CSLB – Fees & Licensing |
| ABC license | Varies by license type | License type, location, conditions | California ABC |
Filing timelines you can actually plan around
These are realistic planning windows in California. Actual times vary by workload and completeness.
| Task | Typical timeline | Notes |
|---|---|---|
| Zoning confirmation | Same day to 1–5 business days | Complex uses may require CUP (weeks/months) |
| City business license review | 1–10 business days | Longer if inspections or plan reviews required |
| Seller’s Permit (CDTFA) | Same day to 1–3 business days | Account setup and filing frequency assigned |
| EIN | Immediate online | Keep confirmation letter for banks |
| CA SoS entity filing | Same day to a few business days | Paper filings take longer |
| Statement of Information | Due within 90 days | Mark calendar for renewals |
| FBN filing | Same day to a few days | Publication runs 4 consecutive weeks within 30 days of filing |
| Health permit (food) | 2–8+ weeks | Plan review + inspections |
| ABC license | 45–90+ days | 30‑day posting required |
| CSLB license | Several weeks to months | Exam scheduling and background |
Real‑world Modesto examples
Example A: Home‑based Etsy seller (Modesto address)
- Confirms home occupation rules and applies for City business license.
- Registers for a free Seller’s Permit with CDTFA because they sell taxable goods and will collect and remit sales tax.
- Files an FBN if using a brand name not their legal name and publishes for 4 weeks per BPC §17917.
- Gets an EIN ($0) and opens a business bank account.
- Plans quarterly CDTFA returns based on assigned frequency.
What to do if this doesn’t work:
- If home occupancy limits client pickups or inventory, consider a small storage unit or flex space properly zoned; recheck zoning first with the City.
Example B: New café with seating (inside city limits)
- Requests a zoning confirmation and early meeting with Planning, Building, Fire, and Health (DER) to understand grease interceptor needs, restrooms, ADA routes, and seating counts.
- Files entity with SoS (LLC or corporation), gets EIN ($0), and notes $800 FTB annual minimum.
- Submits tenant improvement plans, secures building permits, and schedules inspections.
- Registers with CDTFA for Seller’s Permit; if selling beer and wine, starts ABC process (expects 30‑day posting and possible 45–90+ days timeline).
- Applies for City business license after confirming all occupancy requirements.
What to do if this doesn’t work:
- If the site needs heavy upgrades, get contractor bids and reconsider the lease or request landlord contributions. Ask DER if a limited menu/temporary permit is possible while upgrades are underway.
Example C: General contractor (B‑license) headquartered in Modesto
- Ensures CSLB license is active for jobs $500+ (labor + materials). Keeps bond/current insurance.
- Applies for a City business license (office). Confirms whether any storage yard or fabricating work is allowed at the address.
- Registers for EIN ($0), EDD payroll ($0) if hiring.
- Remembers that jobs in other cities may require additional local business licenses.
What to do if this doesn’t work:
- If a jobsite is in unincorporated county, check Stanislaus County requirements and permits. Use CalGold for the exact jurisdiction and contacts.
Taxes and accounts to set up correctly
- Sales and use tax: Use CDTFA – Find a Sales Tax Rate to set correct rates for your specific address.
- California income/franchise tax: Budget the $800 annual minimum for LLCs, LPs, LLPs, and corporations (exceptions or first‑year rules can change; verify at FTB). See also the LLC fee based on total California income: FTB – LLC Fee.
- Employer payroll accounts: EDD for UI/SDI/PIT: EDD – Payroll Taxes.
- Federal income/payroll taxes: IRS account setup and EFTPS for payments: IRS – EFTPS.
What to do if this doesn’t work:
- Call CDTFA 1‑800‑400‑7115 for sales tax questions.
- Call EDD 1‑888‑745‑3886 for employer tax setup.
- Call IRS Business line 1‑800‑829‑4933 for federal questions.
Common Modesto business types and permits (quick matrix)
| Business type | City Business License | Seller’s Permit | County Health | State Board/License | Other |
|---|---|---|---|---|---|
| Home‑based online retail | Yes | Usually yes | No | No | FBN if using trade name |
| Restaurant/Café | Yes | Yes | Yes (DER) | ABC if alcohol | Building/Fire permits |
| Mobile food (truck/cart) | Yes (check mobile vendor rules) | Yes | Yes (DER mobile) | ABC if alcohol | Encroachment/special event permits |
| General contractor | Yes | Maybe (if selling materials) | No | CSLB | Jobs in other cities may require local licenses |
| Salon/Barber shop | Yes | Possibly (retail products) | No | Board of Barbering & Cosmetology | Building/Fire tenant improvements |
| Auto repair | Yes | Possibly (parts retail) | No | BAR | Hazardous materials rules may apply |
Common mistakes to avoid
- Skipping zoning checks and signing a lease with hidden build‑out costs.
- Forgetting the Statement of Information within 90 days (SoS). Missing it leads to penalties and suspension.
- Not publishing the FBN within 30 days for 4 weeks as required by BPC §17917.
- Using the wrong sales tax rate by relying on ZIP codes instead of the official address lookup: CDTFA Rate Finder.
- Ignoring the $800 annual minimum tax for LLCs/corporations/LPs/LLPs.
- Opening without health permits or final inspections (for food).
- Contractors starting jobs $500+ without a CSLB license and bond.
- Letting city licenses or permits lapse by missing renewal notices.
- Not registering with EDD when you start payroll, which triggers penalties.
- Assuming a trade name is protected just because you filed an FBN. An FBN is not a trademark. Consider USPTO if brand protection matters: USPTO – Trademarks.
What to do if things get stuck (Plan B options)
- Use CalGold to confirm you’re dealing with the correct agency: CalGold.
- Ask the City to identify the specific department causing the delay and request the reviewer’s contact.
- Get help writing a simple “scope of operations” and plan set. SBDC counseling is free: SBA – Resource Partners.
- If a site won’t work due to zoning/building constraints, ask Planning about permitted zones for your use and search there.
- If cash is tight due to permit/build‑out costs, talk with your landlord about tenant improvement credits, phased openings, or reduced rent during construction. Also review SBA microloans: SBA – Loans Overview (federal source).
Inclusivity, Diversity, and Accessibility Resources
Women‑owned businesses
- Federal WOSB/EDWOSB certification for federal contracting. Info: SBA – WOSB Program.
- California procurement opportunities and small business certification: DGS – Cal eProcure (SB/DVBE).
Minority‑owned businesses
- MBDA Business Centers (business development, access to capital/contracts): MBDA – Find a Business Center.
- State procurement (Small Business/Microbusiness certification): DGS – Cal eProcure.
Disabled‑owned businesses
- Supplier diversity resources: Disability:IN – Supplier Diversity (national nonprofit).
- CA Civil Rights resources for anti‑discrimination and accommodations: California Civil Rights Department.
Veteran‑owned businesses
- California Disabled Veteran Business Enterprise (DVBE) certification: DGS – DVBE.
- VA resources for veteran entrepreneurship: VA – Office of Small & Disadvantaged Business Utilization.
LGBTQ+‑owned businesses
- National LGBT Chamber of Commerce certification: NGLCC – Supplier Diversity.
Immigrant‑owned businesses and language access
- California’s immigrant guide (state services, legal rights, language help): California – Immigrant Guide.
- CDTFA language assistance and translations: CDTFA – Language Resources.
- IRS forms and publications in other languages: IRS – Languages.
Accessibility and ADA
- Americans with Disabilities Act small business guidance: ADA.gov – Small Business.
- California access standards are enforced through building permits and inspections. Check with City Building Safety and your design professional.
Frequently Asked Questions (California‑specific)
- Do I need a business license in Modesto if I’m online only?
- If your business is based at a Modesto address (even home‑based), the City generally requires a Business Tax Certificate. Verify with the City: City of Modesto – Official Site.
- I sell on marketplaces (e.g., Etsy/Amazon). Do I still need a Seller’s Permit?
- If you sell taxable goods and your business has nexus in California, you typically need your own Seller’s Permit even if marketplaces collect some tax. Confirm with CDTFA: CDTFA – Register or call 1‑800‑400‑7115.
- How much is the California minimum franchise tax?
- For most LLCs, LPs, LLPs, and corporations, $800 per year. See: FTB – LLC Annual Tax.
- Do I need a DBA if I formed an LLC?
- Only if you operate under a name different from the exact legal name registered with the SoS. If you add words or drop “LLC,” file an FBN with Stanislaus County and publish per BPC §17917.
- When is the Statement of Information due?
- Within 90 days of formation (LLCs and corporations). Then every two years (LLCs) or annually (corporations). Source: SoS – Statements of Information.
- What sales tax rate do I charge in Modesto?
- Use the official address lookup because rates vary by location: CDTFA – Find a Sales and Use Tax Rate. Do not rely on ZIP codes.
- Do contractors need a city business license and a CSLB license?
- Yes. CSLB covers state licensing for jobs $500+, and the City business license covers operating within the city. Projects in other cities may require their local business licenses. Sources: CSLB and City of Modesto.
- How long does an ABC license take?
- At least 30 days for the posting period and typically 45–90+ days overall depending on the license type and background check. Source: California ABC – Licensing.
- Is a Seller’s Permit really free?
- Yes. $0 to register, but CDTFA may require a refundable security deposit. Source: CDTFA – Seller’s Permit.
- Do I need a health permit for a cottage food business?
- California Cottage Food Operations (CFO) need county registration or permitting and have specific allowed foods. Check Stanislaus County DER for local process: Stanislaus DER and statewide rules at CDPH – Cottage Food.
Documents checklist
- Entity documents (Articles, Statement of Information) if forming an LLC/corp.
- EIN confirmation letter.
- Lease or property use letter and floor plan for tenant improvements.
- Seller’s Permit registration confirmation.
- FBN filing receipt and proof of publication (after 4 weeks).
- Insurance certificates (general liability; workers’ comp if you hire; bond for contractors).
- Health/ABC/CSLB/BAR/Board licenses as applicable.
- City Business Tax Certificate approval.
Who to call (and where to find them)
| Topic | Agency | Phone | Link |
|---|---|---|---|
| Sales tax / Seller’s Permit | California CDTFA | 1‑800‑400‑7115 | CDTFA – Contact |
| EIN / Federal business tax | IRS | 1‑800‑829‑4933 | IRS – EIN & Business |
| CA employer payroll taxes | EDD | 1‑888‑745‑3886 | EDD – Payroll Taxes |
| State entity filings | CA Secretary of State | See website | SoS – bizfile Online |
| City licensing & permits | City of Modesto | See website | City of Modesto – Official Site |
| County FBN (DBA) | Stanislaus Clerk‑Recorder | See website | Stanislaus County – Clerk‑Recorder |
| County health permits (food) | Stanislaus Environmental Resources | See website | Stanislaus DER |
| Contractors | CSLB | 1‑800‑321‑2752 | CSLB – Licensing |
| Alcohol licenses | ABC | See website | California ABC |
| Free advisors (SBDC/SCORE/WBC) | SBA | See website | SBA – Resource Partners |
“What to do if this doesn’t work” for each major step
Zoning and site
- If zoning is incompatible, ask for a list of zones where your use is permitted and adjust your site search.
- Consider home‑based for early operations if allowed and then move when feasible.
Entity selection and filing
- If you’re unsure, start as a sole prop with an FBN and Seller’s Permit while you consult a CPA/attorney about an LLC/corporation to manage risk and taxes.
Seller’s Permit
- If CDTFA requests a deposit you can’t cover, ask about a lower estimate tied to realistic initial sales.
City business license
- If your application is pending, ask which department is reviewing. Offer to provide a simple operations plan and any missing documents.
FBN and publication
- If you miss the 30‑day publication start, contact the Clerk‑Recorder for the fix (often re‑filing or re‑publishing).
Health/ABC/CSLB
- Request a pre‑application consultation to identify required corrections ahead of time.
Long‑tail topics that matter in Modesto (and where to get the truth)
- How to look up the exact Modesto sales tax rate for my storefront address: CDTFA – Rate Finder.
- California Statement of Information due date for LLCs and corporations: within 90 days then biennial/annual: SoS – Statements of Information.
- Cottage food businesses in Stanislaus County, including Class A vs. Class B permits: Stanislaus DER and CDPH – Cottage Food.
- Modesto home‑based business rules (home occupation conditions): start at City of Modesto and contact Planning.
- Determine if my address is inside Modesto city limits or unincorporated county: Check your property tax bill or confirm via City/County GIS; start at City of Modesto or Stanislaus County.
Step‑by‑step recap (short version)
- Confirm zoning for your address with the City.
- Choose structure; if LLC/corp, file with SoS and calendar the 90‑day Statement of Information.
- Get EIN ($0).
- Register with CDTFA for a Seller’s Permit ($0) if selling taxable goods.
- Register with EDD ($0) if you’ll have employees.
- File FBN with Stanislaus County and publish 4 weeks within 30 days if using a trade name.
- Apply for the City of Modesto Business Tax Certificate.
- Secure industry‑specific permits and finalize inspections before opening.
About This Guide
- This guide links directly to official sources (City of Modesto, State of California, and U.S. agencies) and avoids guessing. When exact fees vary by business class or change frequently, you’ll see direct links to the current schedules instead of risky numbers.
- Core authority links used throughout:
- City of Modesto – Official Site: City licensing, planning, building, fire, and finance.
- CalGold – California Permit Portal: Official state directory for city/county permits.
- California Secretary of State – bizfile Online: Entity filings and Statements of Information.
- California FTB – Business Taxes: Annual minimum tax ($800) and LLC fee.
- CDTFA – Taxes and Fees: Seller’s Permit ($0), rate finder.
- EDD – Payroll Taxes: Employer registration.
- IRS – Business: EIN ($0).
- CSLB, ABC, BAR, Barbering & Cosmetology, Stanislaus DER, Stanislaus Clerk‑Recorder.
Disclaimer
- Programs, fees, rules, timelines, and contacts change. Always verify details directly with the City of Modesto, Stanislaus County, and the State of California using the official links in this guide.
- This guide is general information, not legal, tax, or financial advice. For personalized advice, consult a licensed professional.