Do you need a business license in California?
Of course you do! In California, if you operate ANY type of business you need a general business license. This even applies to home-based businesses, or a business that does not make very much money. If you are in business in any city in California, no matter how small, you need to apply for a business license in your city.
 CLICK THE LINKS TO YOUR CITY BELOW TO APPLY FOR A BUSINESS LICENSE
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Do I get a business license from the city, county, or state in California?
General business licenses are governed by each individual city where you do business. They are also called by different names, even though they are cities in the same State! Some cities in California call them a business license, others call them a business tax certificate. For example, if you have a restaurant business in Anaheim and then open another restaurant in San Diego, you will need a business license in Anaheim and a business tax certificate in San Diego, but they are really both the same thing. The reason for this is that each city in California is allowed to charge fees for any business located in its jurisdiction as a tax collection mechanism and also as a way to track economic development statistics. So, if you are going to open several business locations you need a business license in every city where you open a location with employees. For most businesses, the problem with filing for a business license and paying the fees in multiple locations is not a problem. This would most likely apply to franchises and large retail chains.
However, do not be confused about the general business license required by each city, and the other types of licenses applicable to businesses that are required by counties and the State of California. Several county and state licenses are required for different types of trades and businesses in order to protect the public health and safety, such as gun dealers and tattoo artists. Some cities require these types of licenses too. These types of licenses are IN ADDITION to the general business license required by the city. The state of California may also have different licenses that you will need to get in addition to the city general business license, such as a Seller’s Permit from the California State Board of Equalization. For more general information about county and state business licenses, go to our main business license page by clicking here.
How do I get a business license in California?
You need to fill out an application that you can obtain from your city’s offices or city hall. Most cities have forms that you can download, print and mail or hand-deliver to the city office and require you to pay a fee, usually between $50 and $100, but often depends on the size of your business (how many employees you have). This is usually not a common factor, as most businesses in California are small businesses. Many larger cities now allow you to apply for a business license online! Visit your cities business license website by choosing your city from the list below.
What information do I need to fill out the business license application in California?
Every city has a different business license form, however, most of them are very similar. You can expect to be asked the following information:
Business Name
Business Address
Mailing Address (if different from the main address)
Phone Number
Type of Business (LLC, Corporation, Partnership, or Sole Proprietor)
Federal Tax ID Number (Employer Identification Number or EIN) obtained from the IRS (If you are a sole proprietor, this is your social security number)
Sellers Permit Number (If you sell goods in California you will need this before getting a business license)
Each individual owner’s name, address and phone number
Driver’s license number
Type of Business to be conducted
Number of Employees
Expected Annual Sales
In many cities, there is an annual fee that is required to be paid every year. For some cities, the fee is fixed, but for others it depends on your sales revenues. This makes it more expensive to do business in one city versus another, but normally the fee is only a small percentage of sales. Many cities allow you to pay by credit card, but most still require a written check.
The city will usually mail you some type of license or certificate with a business license number within a few weeks.
Apply for a business license now by visiting your city's website using the links above.
