PermitDueHow to Get a Business License in California
March 16, 2026 · Daniel Amar·Last updated: March 16, 2026
California does not have one business license
This trips people up constantly. There is no single "California business license" you can apply for and be done. Instead, you are dealing with multiple agencies at the state, county, and city level — each with their own application, fee, and timeline.
I have walked through this process with dozens of business owners, and the number one mistake is assuming that filing your LLC means you are licensed to operate. It does not. Your LLC is a legal entity. Your business license is permission to operate in a specific location. You need both, and they come from different places.
Step 1: Register your business entity with the Secretary of State
Before anything else, you need to formally register your business structure with the California Secretary of State.
- LLC: File Articles of Organization (Form LLC-1). Costs $70. You can file online through bizfileOnline.sos.ca.gov.
- Corporation: File Articles of Incorporation. Also $70.
- Sole proprietorship or general partnership: No state filing required, but you will need a DBA (Fictitious Business Name Statement) filed at your county clerk — more on that below.
Processing time is about 5 business days for online filings. If you mail it in, expect 5 to 10 weeks. Yes, weeks.
Step 2: Get your EIN from the IRS
Your Employer Identification Number is free and takes about 10 minutes to get online at irs.gov. You need this before you can open a business bank account, hire employees, or file taxes. Do this right after your entity is formed.
Step 3: File your Fictitious Business Name (if applicable)
If your business operates under any name other than your legal name (for LLCs, this means anything other than the exact LLC name), you need to file a Fictitious Business Name Statement (DBA) with your county clerk. This costs $10 to $80 depending on the county, plus you are required to publish the name in a local newspaper for four consecutive weeks. The publication runs another $30 to $100.
This is not optional. Operating under an unregistered fictitious name is a misdemeanor in California.
Step 4: Register with the California Franchise Tax Board
Here is the part that surprises people. California charges an $800 minimum annual franchise tax for LLCs and corporations — and it is due even if your business earns zero revenue. The Franchise Tax Board (FTB) will send you a bill. For LLCs, this is due by the 15th day of the 4th month after your LLC was formed.
New LLCs formed on or after January 1, 2024 are exempt from the $800 fee for their first tax year. But it kicks in year two regardless of revenue.
Step 5: Get your city or county business license
This is the actual "business license" most people think of. Almost every city and county in California requires one, and you cannot legally operate without it.
The process varies by city, but it generally looks like this:
- Go to your city's business license or tax department website (or visit in person)
- Fill out an application with your business name, address, type of business, and expected revenue
- Pay the fee — this ranges from $50 to $500+ depending on the city and your business type
- Some cities charge a flat fee; others charge based on gross receipts
In Los Angeles, the business tax registration is based on gross receipts and starts around $100. In San Francisco, you need a Business Registration Certificate that costs $100 to $900 depending on revenue. In San Diego, the business tax certificate is about $34 to $75 for most businesses.
If you are not sure which agency handles it for your city, check the CalGold portal — it is a state-run tool that tells you exactly which permits and licenses you need based on your business type and location.
Step 6: Get your seller's permit (if you sell tangible goods)
If you sell physical products, you need a seller's permit from the California Department of Tax and Fee Administration (CDTFA). This is free to obtain, but it obligates you to collect and remit sales tax. Apply online at the CDTFA website.
Even if you only sell online, if you have a physical presence in California, you need this.
Step 7: Industry-specific permits
Depending on your business type, you may need additional state licenses:
- Restaurants and food service: Health permit from your county health department, plus food handler certifications
- Bars and alcohol: Liquor license from the Department of Alcoholic Beverage Control (ABC)
- Contractors: License from the Contractors State License Board (CSLB)
- Salons and barbers: License from the Board of Barbering and Cosmetology
- Retail with food: Food facility registration with your county environmental health division
What it costs: California business license fees
| Item | Cost | Frequency |
|---|---|---|
| LLC filing (Secretary of State) | $70 | One-time |
| Franchise Tax Board minimum tax | $800 | Annual |
| Fictitious Business Name (DBA) | $10 - $80 + publication | Every 5 years |
| City business license / tax certificate | $50 - $500+ | Annual |
| Seller's permit (CDTFA) | Free | One-time (but ongoing reporting) |
| EIN (IRS) | Free | One-time |
| County health permit (food businesses) | $200 - $1,000 | Annual |
| Professional licenses (varies) | $50 - $500+ | Varies |
Timeline: how long does it take?
| Step | Processing Time |
|---|---|
| LLC filing (online) | 3 - 5 business days |
| LLC filing (mail) | 5 - 10 weeks |
| EIN | Immediate (online) |
| City business license | Same day to 2 weeks |
| Seller's permit | Same day (online) |
| DBA filing + publication | 4 - 6 weeks |
| Health permits | 2 - 8 weeks (includes inspection) |
| Liquor license (ABC) | 60 - 180 days |
California-specific gotchas
- The $800 franchise tax is due even if you make no money. New business owners get blindsided by this constantly. If you formed an LLC in October, you owe $800 by the following April 15th — and then another $800 for the next tax year.
- Home-based businesses still need a license. Working from home does not exempt you. You still need a city business license, and your city may require a home occupation permit with restrictions on signage, customer visits, and deliveries.
- CalGold is your friend. The CalGold portal maintained by the Governor's Office of Business and Economic Development is the single best starting point. Enter your business type and location, and it spits out every permit you need with links to the issuing agencies.
- City requirements vary wildly. Los Angeles, San Francisco, San Jose, and Sacramento all have completely different business license processes. Do not assume what works in one city applies to another.
- Statement of Information: Within 90 days of forming your LLC, you must file a Statement of Information (Form LLC-12) with the Secretary of State. Costs $20. Miss it, and the SOS can suspend your LLC.
What happens if you skip it
Operating without a business license in California can result in:
- Fines of $100 to $1,000+ per day depending on the city
- Back taxes plus penalties from the Franchise Tax Board
- Inability to enforce contracts (unlicensed contractors cannot sue for payment)
- Suspension of your LLC by the Secretary of State
- Criminal misdemeanor charges in some jurisdictions
It is not worth the risk. The total cost to get properly licensed in California is usually $1,000 to $2,000 in the first year. The fines for not doing it can be multiples of that — in the first month.
Get your California permits sorted
California has a lot of moving parts. State filing, county DBA, city license, tax registration, industry permits — it adds up. But each step is individually straightforward once you know what it is and where to go.
If you want to see every permit your specific business needs in your specific California city, use the free permit checker. It takes two minutes and gives you the full list with links to the actual agencies. No guessing, no calling around.
Already have your permits? Make sure you do not let them expire — the penalties in California are steep.