Among the things that every investor ought to know before initiating a business in California, Yes, a business license or business tax registration certificate is among the requirements. The following section discusses an approximation on the general cost of acquiring a business license in California.
Statewide Fee
California does not have one general business license for the state. Nevertheless, most of the corporations are subjected to meet an annual minimum tax to the California Franchise Tax Board. This tax vary from $800 per year for most corporation or LLCs’ to $100 per year for any business formed out of state. This annual tax is not paid by some classes of businesses for instance partnership and sole trade.
Local Business License Fees
On top of the state tax certificate you will also require a license or permit from your city or county – or both. License fees differ across individual California locales but usually start from $25- $150 for the new registration. The local municipality will fix the annual renewal fee you are required to pay in future depending on your type of business and its size. For instance, Los Angeles is $98 for the initial year and $84 thereon for ordinary business license.
Special Area / Sector Specific Permits
Apart from the conventional business licenses your business may need to register for other activities, permits or licenses depending on the nature of your business. Special license may include those for restaurants and bars, auto mechanics, construction firms and others. There’s an application fee with these permits that can vary considerably, from only $25 to frequently exceed hundreds of dollars.
On average, you will need anything from $100 to $1500 to fully legally register your California business when you include state, local, and operation permits and fees. These costs depend greatly on the exact location where your business is situated, size the kind of work that you do. You should be certain to find all the licenses that apply to your county and city when starting your business early.