If you are thinking of starting a business in California, then it is a must to obtain a business license. Your business should be registered even if it is small or home-based or yields less profit. Individual city governs general business license, and they are known by different names. Even the cities in the same State have different names for business licenses. Some also call them a business tax certificate. For example, if a person has a business in San Diego and wants to open another business in Anaheim then, he will need a business tax certificate in San Diego and a business license in Anaheim where both are the same things with different names. Let us have a look at the procedure to obtain a business license.
- Locate the suitable Business Permit Office
- The Governor’s Office of Economic Development in California offers a web-based permit assistance program known as CalGold. This helps to find the suitable permit office where business owners must contact.
- Select your country or city to find the local agency that is responsible for the issue of business permits. Click on the search icon.
- There is a box in which you can type the business type or click on “view all,” where you will find the list of business types. Then click on the applicable business type.
- Once you click the search button, possible “Licenses and Permits” will appear. The second entry state, “Business License-Business Tax Certificate.” With the information that is given on the right side, you can determine how and where to contact the suitable licensing office. The phone number, address, website, and fax should be listed.
- Apply for Business License
- Availability of Form
- Once you get the information from CalGold regarding the business license office, it’s time to visit the office in person or visit their website if you require additional information. You will find online forms of some offices such as Alameda city that offers a PDF of Business license application. You can take the print and fill it before mailing. Cities as San Diego also provides online business tax certificate or via U.S. mail.
- Form Completion
- The form will ask you to provide the information such as Name of Business, Address of Business, Contact Information (email, mailing address, website address, and phone number), Business Type (Whether partnership or LLC etc.)Social Security Number (SSN)or Federal Tax ID Number(FEIN), Addresses and names of each owner, annual sales expected and a number of employees in the business.
- Fee Payment
For applying for the business license, you need to pay the fee. The business size and the number of employees in business will affect the fee you need to pay. Generally, it ranges from $50 -$100. - Additional License Requirement
- Depending on business nature and type, you may require additional licenses. Business such as Car washing requires an additional license of Car Washing and Polishing Registration Certificate,” which is issued from the “Division of Labor Standards.” Likewise, if you plan on leasing or selling products, then a seller permit is necessary. You can get it online by the California State Board of Equalization.
- Other licenses businesses include a (Beauty Salon) Barbering and Cosmetology license, an Alcoholic Beverage License, (grocery store) Product Dealers License, (Restaurant) a Sales and use Permit and (Automobile Dealer) Vehicle Dealer License.
- You can revisit the “Permit and Licenses” search results on CalGold to find the need for additional certificates.
- Not all listed licenses and permits will apply. For example, there may be a result of “Building Permit” even when you are establishing a law firm. In this case, you have to visit the state’s legal incubator program or contact an attorney to decide the licenses you need to apply.
- Form Rejection
- Reason behind Denial
There are many reasons for application rejection, such as:
- Misrepresentation in the form.
- Fail to clear objectionable points.
- In the last five years, if a person has been found convicted of a crime that illustrates an inconsistency with carrying an activity or business.
- Appeal
Once there is a denial of the application then a person can file a notice by visiting the clerk’s office. There is a time limit such as a diamond bar gives 15 days.
- Hearing
The person has to appear on hearing that will held before the city council or some other body. A witness can also be presented. The final decision is given by the city council.