I need a what?

Starting a business is new, exciting, and overwhelming. At the same time fighting the apprehension of "can I really do this?" It is understandable that the most organized person may overlook a tiny but important detail. Working in local government, it was always surprising how many people did not realize that they needed a local business license to operate.

So what is a business license? Many California counties and cities require businesses to obtain a business license before conducting business in their jurisdiction. This requirement applies to all businesses, including one-person, or home-based operations. Some cities in the State of California call them a business license, others call them a tax certificate. Regardless of what it is called, each city in California charges a fee for any business that is providing a service or selling goods as a tax collection mechanism, and as a way to track economic development statistics. Typically, you will need to provide the licensing authority with the owner's and business's name and address, additional contact information, business type and structure, federal tax ID number, numbers of employees, and projected annual sales. Licenses and/or permits are generally easy to obtain and can be approved withing a few weeks depending on the city or county.

You may be thinking to yourself, "I am ok, I registered my business with the State of California." Filing for incorporation is not the same as obtaining a business license in the city where you are conducting business. Incorporating your business is solely for tax purposes and liability protection.

You also may be thinking, "I am an online seller, I am not really conducting business in a particular city." As mentioned above, home-based businesses need a business license from the city in which they are operating to conduct business. In some cases, you also may need to obtain a home occupation permit. When starting a business, it is always a prudent decision to contact your local municipality to inquire on what licenses are needed to operate.

A local business license is a small part of what business may need to operate legally and without penalty. If you are feeling overwhelmed or concerned about making a mistake, seek assistance to help you navigate the process. If you are not ready to seek assistance, a great place to start is Cal Gold. CalGold may help you determine the appropriate permits for you business and provide contact information for licensing agency. No matter how you decide to move forward take advantage of the resources that are available to you!