Nearly every business needs at least one type of license or permit to operate legally in California. Unfortunately, figuring out exactly what licenses you need to operate in your area or in your specific industry can be a tedious task. Depending on the type of business you have, you may need to obtain a local, county, state, or federal business license. Luckily, California makes this a little easier through the CalGold website. This tool allows you to search by city or county and type of business to see what permits you need and the regulatory agency that governs them.
California Local Business License
The most basic type of business license you will need is a Business Operations License. This is often simply called a “Business License” or “General License” and usually also includes a Business Tax Certificate. These are the most common licenses and apply to essentially all types of businesses and are more or less the same in every city and county in California.
If the name you are doing business under does not match the name you registered your business under with the Secretary of State, you may need or want to file a fictitious business name (FBN) or trading name (DBA) for your business.
Restaurants, coffee shops, fitness facilities, and other businesses that have a stake in people's health need public health permits. Chefs, cooks, baristas, and servers also need food handler certification to work in the food industry. These permits often require some form of training or testing.
A pesticide applicator license will likely be required for any agricultural activity that uses any type of pesticide, and obtaining one may require some studying and passing an exam.
Additional local permits
Additional permits that you may need to obtain at the city or county level when starting a business in California include:
Zoning and land use permits. These are needed if the land your business operates on isn't zoned properly for the type of business you operate. Building permits. You may need a building permit if you're building a new building or renovating an existing one. Fire department permits. These are needed if your business uses flammable materials and serves the public, such as restaurants, gyms, daycares, hotels, and nursing homes.
These permits are not the same as a business license, but you should find out whether you need to obtain one before starting your business.
California Statewide License
In California, some business licenses are regulated statewide rather than at the local level. The most common is the Sales and Use License, also known as a Vendor License. Businesses that sell or lease tangible property must obtain a Vendor License before the first sale is completed.
If your business sells, manufactures, imports, or distributes alcoholic beverages, you must apply for the appropriate license with the California Department of Alcoholic Beverage Control and register to pay alcoholic beverage taxes with the Department of Tax and Fee Administration.
You may also need several other California licenses to operate your business, and if you're unsure, you should use the CalGold permitting website to do further research.
Federal Licenses and Permits
Most small businesses are not required to obtain federal licenses or permits, but depending on the size of your business and what you do, you may be required to obtain a federal license. Common business areas that are likely to require a federal business license include:
Agriculture The sale, supply, distribution or importation of alcohol Aviation Firearms, ammunition and explosives Fish and wildlife Commercial fishing Maritime transportation Mining and drilling Nuclear power Radio and television broadcasting Transportation
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