California business license guide
How to Get a Business License in California
Last checked: April 26, 2026
California business licensing is not one form from one office. Most small businesses need to check several layers: city or county rules, state tax accounts, state industry licenses, zoning, and sometimes federal permits.
The most important first step is to match your business activity with your exact location. A home-based designer in Sacramento, a food seller in Los Angeles County, a contractor in San Diego, and an online retailer in San José may all need different approvals.
The short answer
California does not give most businesses one single statewide general business license through the Secretary of State. The California Secretary of State says it does not issue business licenses or permits for business entities and points business owners to CalGOLD for license and permit research.
That does not mean you can skip licensing. You may need a city or county business license, business tax certificate, zoning approval, seller’s permit, employer payroll tax account, fictitious business name filing, professional license, health permit, building permit, fire approval, or federal permit.
Start with your city or county, then check California state agencies and federal rules that match your business type.
Quick start: the first places to check
- Write down your exact business activity. Be specific. “Retail clothing store,” “mobile car wash,” “home bakery,” “online handmade goods seller,” and “general contractor” point to different agencies.
- Confirm your business location. Check whether your address is inside a city or in an unincorporated county area. This decides which local license office and zoning office to contact.
- Use California’s CalGOLD permit tool. Search by city or county and business type. CalGOLD does not issue permits, but it points you to agencies that may.
- Check your city or county business license office. Many California cities call the local license a business tax certificate, business registration certificate, business operations tax certificate, or business license.
- Check state tax and industry rules. If you sell taxable goods, check the California Department of Tax and Fee Administration for a seller’s permit. If you hire employees, check the Employment Development Department. If your work is regulated, check the right state board.
- Do not open before zoning and special permits are cleared. A local business tax certificate is often not the same as zoning approval, health approval, fire approval, or a professional license.
California facts box
| Question | California answer |
|---|---|
| Statewide general business license? | California does not use one statewide general business license from the Secretary of State for most businesses. The Secretary of State says it does not issue licenses or permits for business entities. |
| Main permit finder | CalGOLD, California’s permit assistance tool. It helps identify local, state, and federal permit contacts by location and business type. |
| State entity filing portal | bizfile California, the Secretary of State’s online portal for business filings, searches, and records. |
| California DBA term | California commonly uses “Fictitious Business Name,” often shortened to FBN. FBN statements are filed with the county where the principal place of business is located. |
| Sales tax permit name | California uses the term “seller’s permit,” handled by the California Department of Tax and Fee Administration. |
| Employer payroll tax account | Employers register with the Employment Development Department for an EDD payroll tax account. |
| Local license names | California cities use different names, such as Business Tax Registration Certificate, Business Tax Certificate, Business Registration Certificate, Business Operations Tax Certificate, or Business License. |
| State industry examples | Contractors may need CSLB licensing, alcohol businesses may need ABC licensing, cannabis businesses may need Department of Cannabis Control licensing, and many professions are regulated through boards under the Department of Consumer Affairs. |
Which government layer handles what
Do not treat every filing as a “business license.” California uses different names for different approvals. The office you contact depends on the type of requirement.
| Layer | Common California examples | Where to start |
|---|---|---|
| Federal | EIN, federal permits for activities such as alcohol, firearms, aviation, agriculture, transportation, broadcasting, or imports | IRS EIN page and the SBA federal licenses and permits guide |
| California state | LLC or corporation filing, seller’s permit, EDD employer account, state professional or industry license, franchise tax or business tax filings | Secretary of State, CDTFA, EDD, FTB, DCA boards, CSLB, ABC, DCC, and other state agencies |
| County | Fictitious Business Name filing, county health permits, county business license in unincorporated areas, environmental health approval | Your county clerk, county tax/business license office, and county environmental health department |
| City or local | Business tax certificate, business registration certificate, zoning clearance, home occupation permit, sign permit, building permit, fire approval, police-regulated business permit | Your city finance office, business license office, planning/zoning office, building department, or fire department |
| Private platform | Marketplace rules for Etsy, Amazon, Shopify, delivery apps, payment processors, landlords, lenders, insurers, or trade groups | The platform or private contract. These rules do not replace government licenses. |
Watch the wording. An LLC, a seller’s permit, a fictitious business name, and a local business tax certificate are different things. One does not automatically replace the others.
California state registration and tax accounts
California has state-level filings and tax accounts, but they are not all “business licenses.” The right path depends on your business structure and activity.
Entity filing with the Secretary of State
If you form a California LLC, corporation, limited partnership, or similar entity, you generally file with the California Secretary of State. The Secretary of State’s bizfile California portal lets businesses file, search, and order business records online.
A sole proprietor usually does not form an entity with the Secretary of State just to start operating. But a sole proprietor may still need a local business license, FBN filing, seller’s permit, employer account, zoning approval, or professional license.
Statement of Information
California LLCs and registered foreign LLCs must file a Statement of Information with the Secretary of State within 90 days of registering and every two years after that. The Secretary of State’s LLC-12 instructions list the Statement of Information filing fee as $20. Corporations and other entity types have their own filing rules, so check the current Secretary of State instructions for your entity.
Franchise Tax Board
The California Franchise Tax Board handles state income tax and franchise tax matters. The FTB states that every corporation incorporated, registered, or doing business in California must pay the $800 minimum franchise tax, with listed exceptions for some first-year and short-year situations. LLCs, partnerships, and other entity types have different tax rules. Check the FTB before you choose an entity or assume a tax amount.
| State item | What it does | Agency | Important note |
|---|---|---|---|
| LLC, corporation, or other entity filing | Creates or registers a legal business entity in California | California Secretary of State | This is not the same as a city business license. |
| Statement of Information | Keeps entity contact, management, and agent information current | California Secretary of State | LLCs have an initial 90-day filing and biennial filing schedule. |
| Seller’s permit | Lets a business sell or lease taxable tangible personal property in California | CDTFA | Needed by many retailers, wholesalers, makers, and online sellers. |
| Employer payroll tax account | Used to report and pay California payroll taxes | EDD | EDD says employers must register within 15 days after paying more than $100 in wages in a calendar quarter. |
| Industry or professional license | Authorizes regulated work, such as contracting, many licensed professions, alcohol, cannabis, or insurance | Depends on the industry | Check the specific board or department before advertising or taking jobs. |
DBA and fictitious business names in California
California commonly uses the term Fictitious Business Name, or FBN. Many people call this a DBA, trade name, or assumed name.
The California Secretary of State says fictitious business names are filed with the county where the principal place of business is located. Counties set their own filing steps and fee pages.
County rules matter. For example, Orange County says an FBN statement is filed in the county of the principal place of business. It also says the registrant must publish the statement once a week for four consecutive weeks in a legally adjudicated newspaper of general circulation in the county where the FBN is filed, with the first publication within 45 calendar days from the filing date.
Practical tip: Search your county FBN records before you file. Also check the Secretary of State business search if you plan to form an LLC or corporation. An FBN filing does not create an LLC, protect a trademark, or replace a local business license.
Seller’s permits and sales tax
If you sell products, start with the California Department of Tax and Fee Administration. California calls this a seller’s permit, not a “sales tax license.”
CDTFA says you must obtain a seller’s permit if you are engaged in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. CDTFA says this applies to individuals, corporations, partnerships, and LLCs, and that both wholesalers and retailers must apply.
CDTFA also provides online registration for permits, licenses, and accounts. Its registration system asks questions about your business activities and identifies the permits and licenses required through that system.
Examples that often need a seller’s permit
- Retail stores
- Online sellers shipping taxable goods from or into California
- Makers selling physical products
- Wholesalers
- Temporary sellers, such as some seasonal or event sellers
Do not confuse these: A seller’s permit is a state tax permit. A city business tax certificate is local. You may need both.
If you hire employees in California
If you hire employees, you may need federal and California employer setup before payroll starts.
The IRS issues EINs for federal tax purposes. The IRS says you can get an EIN directly from the IRS for free and warns that you never have to pay a fee for an EIN.
California employers also need to check the Employment Development Department. EDD says that if you operate a business and employ one or more employees, you must register as an employer and set up an EDD payroll tax account within 15 days of paying more than $100 in wages in a calendar quarter.
- Get an EIN from the IRS if your structure or payroll needs one.
- Register for an EDD payroll tax account if you meet California’s employer registration rule.
- Check workers’ compensation, wage, payroll, and workplace posting rules.
- Do not treat an independent contractor decision as simple. Worker classification can have tax and labor consequences.
Industry and professional licenses
Some California businesses need a state license because of what they do. This is separate from local business licensing.
| Business type | California agency to check | Why it matters |
|---|---|---|
| Contractors and many construction trades | Contractors State License Board | CSLB says businesses or individuals who construct or alter structures in California must be licensed if the project requires a building permit, employee labor is used, or the total cost of one or more contracts is $1,000 or more. |
| Licensed professions and consumer services | Department of Consumer Affairs license search and the specific board | DCA’s license search verifies many licenses issued by DCA boards and shows status and discipline information where available. |
| Alcohol sales, service, distribution, or manufacturing | California Department of Alcoholic Beverage Control | ABC handles licensing, education, and enforcement for alcoholic beverage businesses. |
| Cannabis businesses | Department of Cannabis Control | DCC licenses and regulates commercial cannabis activity. Local approval may also be required. |
| Cottage food operations | California Department of Public Health and county environmental health | CDPH maintains the approved cottage food list but says it does not permit or register cottage food operations. Check your county for the registration or permit process. |
| Insurance agents, brokers, adjusters, and business entities | California Department of Insurance | Insurance licensing is handled by CDI, and the agency offers license lookup tools. |
Use CalGOLD as a cross-check. CalGOLD lets you search by business type and location. If your business type is not listed, CalGOLD says to use “General Business Information.”
Home-based businesses in California
A home-based business can still need a local business license, zoning approval, and state tax permits. The rules depend on your city or county, the type of work, whether customers or employees come to the home, whether you store inventory, whether you prepare food, and whether you change the property.
California cities handle home businesses differently. Sacramento says a home occupation permit is needed in addition to the city business operations tax when a business is operated from a residence. San Diego’s home occupation rules treat a home occupation as a business conducted by a resident on the premises and include cottage food operations that meet the applicable rules.
Questions to ask before you work from home
- Is my address inside city limits or in an unincorporated county area?
- Does my city require a home occupation permit?
- Are customers, students, clients, deliveries, or employees allowed at the home?
- Can I store inventory, equipment, chemicals, food, or vehicles at the home?
- Do signage, parking, noise, or traffic rules apply?
- Does my lease, HOA, landlord, or insurance policy restrict business use?
City and county licenses are often the main “business license” layer
In California, the local layer is often where the everyday business license happens. The exact name depends on the city or county.
Los Angeles calls it a Business Tax Registration Certificate. San Diego calls it a Business Tax Certificate. San José calls it a Business Tax Certificate and says people may hear it called a business license or business permit. San Francisco uses a Business Registration Certificate. Sacramento uses a Business Operations Tax Certificate. Long Beach uses the term Business License.
Examples from large California cities
| City | Local term | Official starting point |
|---|---|---|
| Los Angeles | Business Tax Registration Certificate | LA Business Navigator: Business Tax Registration Certificate |
| San Diego | Business Tax Certificate | City of San Diego Business Tax Program |
| San José | Business Tax Certificate | City of San José Business Tax and Registration |
| San Francisco | Business Registration Certificate | San Francisco Treasurer and Tax Collector: Register a Business |
| Fresno | Business License and Tax Certificate | City of Fresno Business License and Tax Certificate |
| Sacramento | Business Operations Tax Certificate | City of Sacramento Business Operations Tax |
| Long Beach | Business License | City of Long Beach Apply for a Business License |
| Oakland | Business Tax Certificate | City of Oakland Business Taxes, Licenses and Permits |
A local certificate may not be full approval. San José says its business tax certificate does not mean approval for zoning, fire rules, occupancy, or other permits or licenses that may be required by city, county, state, or federal government. Treat that as a useful warning for California local licensing in general.
California city guides on BusinessLicenseGuide.com
Use these city guides when your business is in one of these cities. Always verify current fees, deadlines, forms, and approval steps with the official city page before applying.
Los Angeles business license guide
For businesses checking the Los Angeles Business Tax Registration Certificate, zoning, city permits, and county/state layers.
San Diego business license guide
For businesses checking the San Diego Business Tax Certificate, local permits, county rules, and state permits.
San José business license guide
For businesses checking San José’s Business Tax Certificate and local approval steps.
San Francisco business license guide
For businesses checking San Francisco business registration, city permits, and state tax accounts.
Long Beach business license guide
For businesses checking Long Beach business licensing, special permits, county health, and state registrations.
Oakland business license guide
For businesses checking Oakland’s business tax certificate, zoning clearance, and local renewals.
Fresno business license guide
For businesses checking Fresno business license and tax certificate steps.
Sacramento business license guide
For businesses checking Sacramento’s Business Operations Tax Certificate and home occupation rules.
Step-by-step checklist for California
- Define the business activity. Write a short description of what you sell, where you sell it, who you sell to, and whether you provide services, goods, food, regulated work, or rentals.
- Choose a business structure. Decide whether you will operate as a sole proprietor, partnership, LLC, corporation, or other entity. Get tax or legal help if the choice affects liability, investors, payroll, or taxes.
- Search the business name. Check Secretary of State records if forming an entity. Check your county FBN records if using a fictitious business name.
- File entity paperwork if needed. Use California Secretary of State bizfile if you are forming or registering an LLC, corporation, limited partnership, or similar entity.
- File a Fictitious Business Name if needed. File with the county where your principal place of business is located. Follow your county’s publication, fee, renewal, and proof rules.
- Get an EIN if needed. Use the IRS directly. The IRS says EINs are free.
- Check the seller’s permit rule. If you sell or lease taxable tangible personal property, check CDTFA for a seller’s permit before making sales.
- Check your city or county license. Look for the local business license, business tax certificate, business registration certificate, or business operations tax certificate.
- Clear zoning before opening. Ask planning or zoning whether your activity is allowed at the address. Home-based, mobile, food, auto, manufacturing, and customer-visit businesses need extra care.
- Check health, fire, building, and sign permits. Restaurants, food sellers, salons, gyms, child care, lodging, warehouses, events, and storefronts often need more than a tax certificate.
- Check state industry licenses. Use CalGOLD and the correct state board for contractors, alcohol, cannabis, professional services, food operations, insurance, and other regulated work.
- Register as an employer if you hire. Check EDD, payroll tax, workers’ compensation, wage, and workplace rules before paying workers.
- Save proof and renewal dates. Keep copies of applications, certificates, permits, account numbers, approval emails, and renewal deadlines.
Common mistakes to avoid
- Assuming an LLC is a business license. An LLC is an entity filing. It does not replace city, county, tax, zoning, or industry permits.
- Skipping the city because you registered with the state. Many California cities require a local business tax certificate or registration even when you already formed an LLC.
- Using the wrong local office. Your city may handle incorporated areas, while the county may handle unincorporated areas. Confirm your address first.
- Opening before zoning approval. A business can have a tax registration and still be blocked by zoning, occupancy, building, fire, parking, or home occupation rules.
- Calling a seller’s permit a resale certificate. The seller’s permit is your CDTFA permit. A resale certificate is generally a document used between buyer and seller for qualifying resale purchases.
- Missing the FBN publication step. County FBN rules may include publication deadlines. Orange County says missing the 45-day first publication requirement makes the statement expire and requires a new filing.
- Ignoring special business permits. Alcohol, cannabis, contractors, food, massage, towing, sidewalk vending, tobacco, child care, and similar businesses often have extra rules.
- Relying on a marketplace or payment processor. Platform approval does not mean government approval.
What to ask when you contact the agency
Use this when you are not sure which office handles your situation. Before calling or emailing, have your business activity, city, county, address or general location, business structure, and sales method ready.
Phone or email script
Hello, I’m trying to confirm the licenses, permits, tax registrations, and zoning approvals needed for a [business type] in [city] and [county]. The business will operate from [home-based / mobile / storefront / online / shared space] at [address or general location]. We will sell or provide [products or services], and we may [sell taxable goods / prepare food / hire employees / have customers visit / use vehicles / do regulated work]. Can you tell me which local business license or tax certificate applies, whether zoning or home occupation approval is needed, and which other city, county, state, or federal office I should contact before opening?
If the agency sends you to another office, write down the office name and ask for the official application link or fee page.
- The exact name of the license, permit, certificate, or tax account
- The agency or office that handles it
- Whether the rule applies to your location and business type
- Whether zoning, building, fire, health, police-regulated business, or home occupation approval is needed
- The official application link or form name
- The current fee page, renewal date, and late fee rule if available
- The name of the person or office you contacted and the date
- The next office to contact if the first agency does not handle the issue
Official California agency directory
Use official sources for final decisions. Rules, fees, forms, and deadlines can change.
- CalGOLD permit assistance tool — California permit finder by city or county and business type.
- California Secretary of State bizfile — business entity filings, searches, and records.
- California Secretary of State business entity FAQs — includes guidance that the Secretary of State does not issue business licenses or permits for business entities.
- California business search — search Secretary of State entity records.
- California Franchise Tax Board business tax information — state tax rules for businesses.
- CDTFA seller’s permit FAQ — seller’s permit rules for taxable sales and leases.
- CDTFA online registration — register for CDTFA permits, licenses, and accounts.
- EDD employer payroll tax account registration — California employer payroll tax account setup.
- Department of Consumer Affairs license search — check many California professional licenses.
- Contractors State License Board — contractor licensing and license lookup.
- California Department of Alcoholic Beverage Control — alcohol licensing and compliance.
- Department of Cannabis Control — commercial cannabis licensing.
- CDPH cottage food operations — approved cottage food list and state-level cottage food information.
- California Department of Insurance — insurance licensing and regulation.
- IRS EIN application information — federal employer identification number guidance.
- SBA licenses and permits guide — federal license and permit categories.
Review note
This guide was checked against California state, city, county, IRS, and SBA sources listed above. Local rules can change quickly, and California cities use different names for similar local registrations. Confirm current requirements with the official agency before filing, paying, opening, hiring, or signing a lease.
FAQ
Does California have one statewide business license?
California does not give most small businesses one single statewide general business license through the Secretary of State. The Secretary of State says it does not issue business licenses or permits for business entities. You may still need state registrations, a CDTFA seller’s permit, employer accounts, state industry licenses, and a city or county business license, tax certificate, or zoning approval.
Do I need an LLC before I get a California business license?
Not always. A sole proprietor may be able to apply for local licenses and tax permits without forming an LLC. An LLC or corporation is a state entity filing, not a business license. Your structure, taxes, liability concerns, and local application rules decide what comes first.
What is a California seller’s permit?
A California seller’s permit is a CDTFA permit for businesses that are engaged in business in California and sell or lease tangible personal property that would ordinarily be subject to sales tax at retail. It is different from a city business license or business tax certificate.
Where do I file a DBA in California?
California usually calls a DBA a Fictitious Business Name, or FBN. FBN statements are filed with the county where the principal place of business is located. County rules, fees, publication steps, and renewal rules can vary, so check your county clerk or clerk-recorder.
Do home-based businesses need a California business license?
They often do, but the answer depends on the city or county and the type of work. A home-based business may need a local business license or tax certificate, zoning clearance, a home occupation permit, a seller’s permit, or special permits for food, child care, beauty, repairs, storage, signs, or customer visits.
What should I do first to get licensed in California?
Start by confirming your business location and activity. Then search CalGOLD, check your city or county business license office, check zoning, and review state requirements such as CDTFA seller’s permits, EDD employer accounts, Secretary of State filings, and industry licenses.
Disclaimer
This article is for general information only. It is not legal, tax, financial, insurance, immigration, employment, safety, zoning, or professional advice. Business rules, fees, forms, and agency policies can change. Confirm important details with the official agency or a qualified professional before you act.