California Business License in 2026: City Licences, the Seller's Permit and State Registrations

If you searched for a "California business license" expecting one state form, you will not find it. California leaves general business licensing to its several hundred cities and, in unincorporated areas, to its counties. The state runs a separate set of registrations: the Secretary of State for companies, the Department of Tax and Fee Administration (CDTFA) for sales tax, the Employment Development Department (EDD) for payroll and dozens of boards for regulated trades. This guide shows which layers apply to you, what they cost in 2026, and links to our city guides for Los Angeles, San Francisco, San Diego and San Jose. Figures were checked with each agency in October 2026.

Quick answer

California has no statewide general business license. You get a business license or business tax certificate from your city, or from your county if you are outside city limits. Separately, anyone selling taxable goods needs a free seller's permit from CDTFA, entities register with the Secretary of State, and regulated trades need a state board licence.

• Seller's permit: Free, though CDTFA may ask for a security deposit

• City licence costs vary: $34 a year in San Diego, from $55 in San Francisco

• LLC articles: $70, plus the $800 annual tax

• Fictitious business name: file with the county within 40 days of starting

Does California have a state business license?

No. There is no single licence that every California business buys from Sacramento. The state's own permit-finding tool, CalGold, run by the Governor's Office of Business and Economic Development (GO-Biz), makes the point indirectly: it says it does not issue permits or licences and sends you to the agencies responsible for each one. CDTFA is more direct. Its seller's permit FAQ states that a seller's permit is not a business license and tells applicants to contact their city or county business license department for that.

So the word "license" means three different things in California. First, there is the local general licence, which most cities call a business license, business tax certificate or business registration certificate. It is usually a tax on doing business in that city rather than a test of competence. Second, there are state registrations such as the seller's permit and employer account, which exist to collect taxes. Third, there are occupational licences for regulated work, issued by state boards after exams, experience checks or inspections.

Most small businesses need at least one item from each of the first two layers. Only regulated trades need the third. The rest of this guide takes them in the order a new owner usually meets them.

What most California businesses actually need

Think of California's requirements as a stack. A freelance graphic designer might touch only two layers; a café owner touches almost all of them.

An EIN from the IRS is free. You need one for an LLC with more than one member, a corporation or any business with employees, and many sole proprietors get one anyway to keep their Social Security number off client forms.

Your city or county business license

This is the layer people mean when they say "California business license", and it is entirely local. Each city writes its own ordinance, so the name, the formula and the deadline all change at the city line. Some cities charge a flat fee, some charge by employee count, and the largest charge a tax on gross receipts.

Look at how much the big four differ. Los Angeles issues a Business Tax Registration Certificate and taxes most businesses on gross receipts, but exempts small businesses with worldwide receipts under $100,000 if they file their renewal on time by the last day of February; our Los Angeles business license guide covers the classes and rates. San Francisco requires a Business Registration Certificate within 30 days of starting, priced on San Francisco gross receipts from $55 upward; see our San Francisco guide. San Diego charges $34 a year for businesses with 12 or fewer employees, explained in our San Diego guide. San Jose's business tax starts at $222.89 for one or two employees, set out in our San Jose guide.

Local licence costs in California's largest cities (2026)

City	What it is called	Starting cost	Our guide
Los Angeles	Business Tax Registration Certificate	Exempt under $100,000 receipts if filed on time	LA guide
San Diego	Business Tax Certificate	$34 a year (12 or fewer employees)	San Diego guide
San Jose	Business Tax Certificate	$222.89 a year (1–2 employees)	San Jose guide
San Francisco	Business Registration Certificate	$55 a year (receipts up to $100,000)	SF guide

Los Angeles

What it is called

Business Tax Registration Certificate

Starting cost

Exempt under $100,000 receipts if filed on time

Our guide

LA guide

San Diego

What it is called

Business Tax Certificate

Starting cost

$34 a year (12 or fewer employees)

Our guide

San Diego guide

San Jose

What it is called

Business Tax Certificate

Starting cost

$222.89 a year (1–2 employees)

Our guide

San Jose guide

San Francisco

What it is called

Business Registration Certificate

Starting cost

$55 a year (receipts up to $100,000)

Our guide

SF guide

Nearly every local licence also carries a state-mandated disability access fee of $4. The Division of the State Architect reports that the fee, which was due to drop back to $1 in 2024, now stays at $4 indefinitely, with cities keeping 90% to fund accessibility training and inspection programmes.

Unincorporated areas and county licences

Outside city limits, the county decides. Counties tend to license by activity rather than charging everyone. Los Angeles County is a good example: its Treasurer and Tax Collector requires a County Business License only for 110 listed activities that may affect public health, welfare or safety, such as restaurants, motor vehicle repair, massage establishments, tow trucks, secondhand dealers and tobacco shops. The county also licenses those activities inside the contract cities of Malibu, Santa Clarita and Westlake Village. If your activity is not on the list, you do not need a county licence at all. Some licences are granted on payment; others need sign-off from the fire department, sheriff, public health or regional planning first.

Other counties work differently, and a few require a general licence for every business in unincorporated territory. Call your county treasurer or tax collector and ask which applies to your address.

The California seller's permit

For shops, restaurants, online sellers and wholesalers, the seller's permit is the state requirement that matters most. CDTFA says you must hold one if you are engaged in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax at retail. That covers individuals, partnerships, LLCs and corporations, and it covers wholesalers as well as retailers.

The permit is Free. CDTFA may, however, ask for a security deposit to cover tax that could go unpaid if the business closes, and it sets the amount when you apply. You register online through CDTFA's free system, and every partner, officer or LLC manager provides some personal details. Once issued, the permit must be displayed at your place of business. If you sell at one location for 90 days or less, such as a seasonal Christmas tree lot, you apply for a temporary seller's permit instead.

California registration figures (2026)

Free

Seller's permit

Security deposit may apply

$70

LLC articles of organization

$800

Annual LLC or corporate minimum tax

11.75%

Highest combined sales tax rate

This is also the answer to the common search for a "wholesale business license California". There is no separate wholesale licence for ordinary goods. A wholesaler holds the same seller's permit, uses it to accept resale certificates from retail customers, and issues its own resale certificates to suppliers. Our resale certificate guide explains the CDTFA-230 form. Some products carry extra state licences on top: CDTFA itself issues the cigarette and tobacco products retailer's licence, and alcohol, firearms and prescription drugs have their own regulators.

Pure service businesses usually do not need a seller's permit. CDTFA notes that repair and installation labour is generally not taxable, while work that creates new tangible goods, such as custom jewellery, can be. Once you hold a permit, you collect the state rate of 7.25% plus district taxes, which push the combined rate as high as 11.75%. Remote sellers must register once their California sales pass $500,000. Our California sales tax guide covers rates by city and filing schedules.

Business name: fictitious business name statements

California calls a DBA a fictitious business name, and it is filed with the county clerk, not the state. Anyone trading for profit under a name that does not include their surname must file. A sole proprietor called Ana Ruiz trading as "Ruiz Catering" generally does not need one; trading as "Golden Coast Catering" does. An LLC or corporation needs one too if it trades under anything other than its exact registered name.

County clerks state that the statement must be filed within 40 days of starting to transact business under the name, in the county of your principal place of business. After filing, you publish it in a newspaper of general circulation once a week for 4 consecutive weeks, beginning within 45 days of filing, and the publisher or you return an affidavit of publication to the clerk. The statement lasts 5 years, or until the facts in it change.

Fees are set by each county. Los Angeles County charges $26 for one name and one registrant, plus $5 for each extra name or registrant; San Diego County charges $54. The newspaper notice usually costs more than the filing. Banks generally ask to see a filed statement before opening an account in a trade name. Our DBA guide compares the rules in other states.

Registering an LLC or corporation

Forming an entity is optional for a sole proprietor, but most owners who want liability protection file with the Secretary of State through bizfile Online. LLC articles of organization (Form LLC-1) cost $70. The Secretary of State's form page says the initial Statement of Information (Form LLC-12, $20) is due within 90 days of registration and every two years after that. A late statement can bring a $250 penalty. From August 1, 2026, filing the statement online requires a bizfile user access login.

The larger cost comes from the Franchise Tax Board. Every LLC and corporation doing business in California owes a minimum annual tax of $800, and there is no longer a first-year exemption. LLCs with total California income of $250,000 or more owe an additional LLC fee on a sliding scale. Our California LLC cost guide works through the full budget, and every entity needs an agent for service of process.

California deadlines to diary

Within 40 days of trading

File a fictitious business name statement with the county clerk

Within 90 days of forming

LLC initial Statement of Information ($20)

Within 15 days of passing more than $100 in quarterly wages

Register with EDD as an employer

Every year

$800 minimum tax to the Franchise Tax Board; city licence renewal

Every 5 years

Refile and republish your fictitious business name

Hiring staff: the EDD employer account

Employers register with EDD for unemployment insurance, the employment training tax, state disability insurance and personal income tax withholding. EDD's rule is that you must register within 15 days once you pay more than more than $100 in wages in a calendar quarter. Household employers have a higher trigger. Registration is free, but the payroll obligations start immediately, and California's minimum wage is $16.90 an hour statewide, with many cities higher. Workers' compensation insurance is required from the first employee.

State occupational licences

The third layer is professional licensing, and California has a great deal of it. The Department of Consumer Affairs oversees 36 boards and bureaus that issue more than 280 licence types to more than 3.4 million licensees, from accountants and architects to security guards and auto repair dealers.

The licences small businesses most often hit are these. Contractors need a Contractors State License Board licence for any job where labour and materials together reach $1,000 or more; the application fee is $450 and you must post a $25,000 bond. Salons need an establishment licence from the Board of Barbering and Cosmetology, which costs $50, plus individual licences for each stylist or manicurist. Bars and restaurants serving alcohol need a licence from the Department of Alcoholic Beverage Control. Food businesses need a health permit from the county environmental health department, and home kitchens selling food go through the county's cottage food registration; see our cottage food guide.

CalGold is the quickest way to build a list for your activity and city. Enter your business type and location, and it returns the state and local agencies to contact. Treat its output as a starting point; it warns that its information may be incomplete.

How to get set up in California, step by step

Getting legally set up in California

1. 1

   Choose your structure

   Stay a sole proprietor or form an LLC or corporation through bizfile Online ($70 for an LLC). Budget for the $800 annual tax.

   California LLC cost guide
2. 2

   File a fictitious business name if you use one

   File with the county clerk within 40 days of starting, then publish the notice for four weeks.

3. 3

   Get an EIN

   Free from the IRS; needed for entities, employers and most bank accounts.

   EIN guide
4. 4

   Apply for a seller's permit

   Register online with CDTFA before your first taxable sale. Display the permit at your premises.

   California sales tax guide
5. 5

   Get your city or county licence

   Apply to the city where you operate, or to the county treasurer if you are in an unincorporated area. Check zoning and home occupation rules first.

6. 6

   Clear occupational and health permits

   Use CalGold to list state boards and county health or fire permits for your activity.

7. 7

   Register with EDD when you hire

   Within 15 days of paying more than more than $100 in wages in a quarter.

Worked examples: first-year costs

These examples use state and city figures checked in October 2026 and leave out optional extras such as legal help or registered agent services.

A freelance web developer in San Diego, sole proprietor. He works under his own name from his apartment, so he needs no fictitious business name. Web development is a service, so no seller's permit. San Diego still requires its Business Tax Certificate at $34 a year, plus a home occupation check under the city's zoning code. First-year licensing cost: about $34, plus the $4 state fee if the city adds it separately.

An online boutique in Oakland, single-member LLC. The owner files LLC articles for $70 and the Statement of Information for $20, gets a free seller's permit, and files a fictitious business name with Alameda County because the shop trades under a brand name. She registers with the City of Oakland for its business tax. Her biggest state cost is the $800 minimum tax due to the Franchise Tax Board. State costs before city tax and newspaper publication: about $890.

A handyman in unincorporated Los Angeles County. He trades as "Canyon Fix-It", so he files a fictitious business name with the county clerk for $26 and publishes it. Handyman services are not among LA County's 110 licensed activities, so he needs no county business licence. He must keep each job below $1,000 in labour and materials, or get a CSLB licence before quoting larger work.

California setup checklist

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• City business licence or tax certificate, or county licence if unincorporated and your activity is listed
• Seller's permit from CDTFA if you sell or lease taxable goods
• Fictitious business name filed and published, if trading under a brand
• LLC or corporation filed with the Secretary of State, plus Statement of Information within 90 days
• EIN from the IRS
• EDD employer account once wages pass $100 a quarter
• State board licence for regulated work (CSLB, BBC, ABC, DCA)
• Health, fire and zoning approvals for your premises

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Common mistakes and how to fix them

The first mistake is paying a website for a "California state business license". Filing services sell packages under that name, but the state issues no such document. The real requirements are the city or county licence and the state registrations described here, and most of them cost little or nothing.

The second is assuming the seller's permit covers everything. It does not replace the city licence, and the reverse is also true: a city licence does not let you collect sales tax. If you discover you have been selling without a permit, register with CDTFA straight away and file the returns you missed; waiting increases penalties and interest.

The third is licensing only in your home city. Contractors, cleaners, photographers and mobile services that work across city lines can owe a licence in several cities. Ask each city's tax office how it defines doing business there.

The fourth is skipping the fictitious business name publication. Filing without publishing leaves the statement incomplete, and some banks will spot the missing affidavit. If you missed the deadline, refile and publish rather than trading on a lapsed statement.

The fifth is forgetting the Franchise Tax Board. A new LLC with no profit still owes the $800 minimum tax, and failing to pay can lead to suspension, which stops the LLC from defending itself in court or entering contracts. Diary the payment when you form the company.

The sixth is opening premises before the zoning and occupancy checks. Many cities will not issue a business licence for a storefront until planning has confirmed the use is allowed, so sign the lease only after you have asked.

Official California links

• CalGold — find permits by business type and city
• CDTFA — Obtaining a Seller's Permit FAQ
• CDTFA — Permits and licences
• Secretary of State — LLC forms and fees
• EDD — Register as an employer
• Department of Consumer Affairs — boards and bureaus
• LA County — Business licence general informationUnincorporated areas
• LA County Clerk — Fictitious business name fees

What to do next

Start with your city: find its business tax or licence office and check the home occupation or zoning rules for your address. Then decide on a structure with our California LLC cost guide, check your name with the LLC name checker, and apply for the free seller's permit if you will sell goods. Use our sales tax calculator to price at your local rate. If you operate in Los Angeles, San Francisco, San Diego or San Jose, our city guides have the exact fees and deadlines, and our business licenses overview compares other states.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does California have a statewide business license?

No. California does not issue one general business license. Your city issues a business license or business tax certificate, or the county does if you are in an unincorporated area. The state handles separate registrations: entities file with the Secretary of State, sellers get a seller's permit from CDTFA, employers register with EDD, and regulated trades are licensed by state boards such as CSLB or the Board of Barbering and Cosmetology.

How much does a business license cost in California?

It depends on the city. Examples for 2026: San Diego charges $34 a year for 12 or fewer employees, San Francisco's registration fee starts at $55, and San Jose's business tax base is $222.89. Los Angeles exempts businesses under $100,000 in gross receipts if they apply on time. Most cities also add the state's $4 disability access fee.

Is a seller's permit the same as a business license in California?

No. CDTFA says plainly that a seller's permit is not a business license. The seller's permit, which is Free, lets you collect and report sales tax on taxable goods. You still need a business license or tax certificate from your city, or from the county if you are outside city limits. Most retailers need both.

What is a wholesale business license in California?

California has no separate wholesale licence for general goods. A wholesaler applies for the same seller's permit as a retailer, because CDTFA requires it of anyone selling tangible goods that would ordinarily be taxable at retail. The permit lets you accept resale certificates from your buyers and issue them to your own suppliers. Some products, such as alcohol, tobacco or prescription drugs, need extra state licences.

Do I need a business license to work from home in California?

Usually yes. Most California cities require a business license or tax certificate for home-based businesses too, and many also require a home occupation permit or zoning clearance that limits customer visits, signs and employees. A freelancer working from home in San Diego, for example, still pays the city business tax. Check your city's municipal code before you start.

How long do I have to file a fictitious business name in California?

You must file a fictitious business name statement with the county clerk within 40 days of starting to trade under a name that does not include your surname. You then publish it in a local newspaper once a week for 4 consecutive weeks, starting within 45 days of filing. The statement lasts 5 years.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Obtaining a Seller's Permit — FAQ — California Department of Tax and Fee Administration · accessed 12 October 2026
2. 2.Permits & Licenses — California Department of Tax and Fee Administration · accessed 12 October 2026
3. 3.CalGold Business Permit System — Governor's Office of Business and Economic Development (GO-Biz) · accessed 12 October 2026
4. 4.Limited Liability Companies — California (Domestic) forms — California Secretary of State · accessed 12 October 2026
5. 5.Business License General Information — Los Angeles County Treasurer and Tax Collector · accessed 12 October 2026
6. 6.Fictitious business names — fees — Los Angeles County Registrar-Recorder/County Clerk · accessed 12 October 2026
7. 7.Fictitious Business Names — San Joaquin County Clerk · accessed 12 October 2026
8. 8.Step 1: Register as an Employer — California Employment Development Department · accessed 12 October 2026
9. 9.About Us — California Department of Consumer Affairs · accessed 12 October 2026
10. 10.Report: SB 1186 License Fee and Use for Construction-Related Accessibility — Division of the State Architect · accessed 12 October 2026