1. Determine the type of business entity to create.
Consider the advantages and disadvantages of different business types such as Sole Proprietorship, LLC, Corporation, S Corporation, and Partnership.
2. Choose a business name and register it with the California Secretary of State.
Verify that the proposed business name is not already registered with another entity in California. Once approved, register the name with the Secretary of State and obtain a Certificate of Registration.
3. Create an Employer Identification Number with the IRS.
This is necessary for both tax and identification purposes.
4. Obtain required local permits and licenses.
Check with the local jurisdiction to determine what permits and licenses are necessary for running a business in a specific area.
5. Register with California Employment Development Department.
This is necessary to comply with state labor laws and employment regulations.
6. Open a business bank account in California.
This is needed to keep personal and business finances separate.
7. File for necessary trade names, trademarks, or copyrights as needed.
This is to protect intellectual property and prevent competitors from using a similar name or logo.
8. Consider purchasing appropriate insurance coverage for your business.
Check with an insurance provider to ensure that the business is fully protected against potential risks.
9. Investigate tax requirements and pay estimated taxes as needed.
Check with the California Franchise Tax Board to learn about taxation requirements and filing deadlines. Make sure to pay estimated taxes as necessary.