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Hands down the best video I have seen as far as the legality of working in California goes. Thank you so so much for your help. I’ve seen many different videos and your video is the most direct and open about what you need and order and that there is much more than that and not a simple beginner steps video like most others I’ve seen.
Found this video helpful especially the Privacy Policy on the business website. You are the first person that I've heard that from. Thank you for your 12 tips!
California has the most insane laws for operating a business. I owned a car stereo business there for 15 years and was forced to buy a license each year for something we had absolutely no involvement with. We sold and installed car stereos but had to (in addition to a sales and installation license) had to pay for a "Small Appliance Repair" license. We did not deal with any small appliances and did no repairs of any kind.
I love this video so much as I am brewing ideas for a new business in San Joaquin County. You said these are the minimum but if you made a 4 hour video with more info I would watch it! I am for sure a bit lost when looking into all of the legal stuff that comes as the foundation of a business!
I'm planning on selling wax melts in California, firstly through Esty . just to confirm i will be needing all the 12 requirements as stated in your video ? many thanks
If you are *only* selling via Etsy, they are a marketplace facilitator so they will handle the sales tax (so you don't need a seller's permit unless you need it to buy wholesale or because you are selling outside of Etsy). Whether you need a business license or permits depends on your county / city / town -- go to their websites and see what they require.
Hi, thank you so much for this video-- it's SO helpful! In one of your responses to a previous comment, you mentioned that waiting to form an LLC until it's profitable might be a strategy. I jumped the gun and formed my LLC already... do I have to complete the rest of the steps in this video? So far, I registered my LLC, and received my EIN. Can I stop where I'm at now to see if it's (profitability-wise) worth pursuing, or am I now in the system and have to complete all of these steps?
If you just formed the LLC in California and you haven't started business yet, you can dissolve it using the short form cancellation bpd.cdn.sos.ca.gov/llc/forms/llc-3--4-7.pdf and if it has been *less than 15 days*, you are except from the $800/year franchise fee (www.ftb.ca.gov/file/business/types/limited-liability-company/index.html). If it has been longer and/or you've already made sales under the LLC, might as well keep using it since you already owe the $800/year franchise fee.
Hi Elizabeth. Would you consider making a video about how to get into law school? I am considering applying to law school. Also, would you share your thoughts about going to law school after 50? Thank you! I enjoy your videos very much!
I recommend you go on the website of your town (or if unincorporated, your county) and look for info about “opening a business” and permits - calling them (or going in person) is even better.
Thanks for sharing. Great information in this video. I have a question regarding the business name: if finding out that someone has taken your name and went and registered it, would/could a social media account's creation date hold up in court when trying to get it back?
Great info!!! Question for you what if you’re buying a pre exciting business like a restaurant. Do the license’s and permits stay with the restaurant, or do you need to get new licenses and permits if your not changing anything?
So first it depends if you are buying the legal entity (like the LLC or corporation) - if yes then stuff transfers to a certain extent but will need to be amended to reflect the new owner. But if you’re just buying the business assets (or it was a sole proprietor or partnership) then you’d probably need new stuff - but check with each one bc sometimes there is a special provision for an ongoing business.
Hello, this is great information. I am going to watch the DBA video that you have, but wondering if I should start a new business or create a DBA if we have an online retail business?
Thank you so much !! You put everything in one video! I’m going to make a list then go look at everything you mentioned for my city ☺️. I’m opening a Crystal store online but some ppl say I should wait to see if I even make sales to get an LLC or sole proprietorship ? What are your thoughts ?
You're welcome! A sole proprietorship is what you have automatically. It can be a good strategy to start out with a SP to see if your business idea works, and then form the LLC once you are making some money.
Hi! All your videos have been so helpful! I am currently starting a clothing company to sell on Shopify. I have filed trademark and LLC to protect my assets before selling, but am still researching/navigating other licenses required before selling. I was hoping you could guide me in right direction on some of these questions I still have: 1. I will be launching much later this year November maybe and expect to do minimal if any business.. do I need the California $800 business license or are there exemption forms I have to fill out since I already created LLC? 2. I am receiving lots of random documents in mail asking for document $$ fees. These have been labeled “state and federal labor law postings”, “Safety Manuel order form”, “California Certificate of Status”, “2024 state & federal all in one labor law poster”. Are these required if I will be the owner and the only employee of my business? Thank you! Any guidance would be greatly appreciated because it is very overwhelming figuring out what is necessary/not for an individual starting off with no background in business!
The $800 is not a business license -- ti is a tax for all LLCs, so it is required. Those random mail documents are scams. You can just get free PDFs of the forms you need from the state.
i had an LLC i never conducted business with so i dissolved it. but I do plan to start a sole prop. do i need a new EIN or do i have to do something with my EIN from my LLC first?
Yes your sole prop needs its own EIN. Many people don't close their IRS EIN account if the business never made any money, but there is a process (from the IRS website): "To cancel your EIN and close your IRS business account, you need to send us a letter that includes: -The complete legal name of the business -The business EIN -The business address -The reason you wish to close the account If you kept the notice, we sent you when we assigned your EIN, you should enclose a copy of it with your EIN cancellation letter. Send both documents to us at: Internal Revenue Service Cincinnati, OH 45999"
Hello I was wondering if you know where I can get my certification as a Woman owned small business in california. I've searched on Google it gave me a ton of 3rd party sites. And this has been stressful. Maybe you can help?
Hm it seems like for California they have small business cert & minority vet cert, but not women. caleprocure.ca.gov/pages/sbdvbe-index.aspx But the federal govt has women cert - www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contracting-program
I searched the USPTO and there's no match for my business name. Great, but do I also need to set up a DBA or just the trademark is good enough? Thanks!
You only need to do a DBA if the business name is different than the legal name (like if you are sole prop, if the business name doesn't include your legal name).
Great information. I recently bought an existing business. It's currently a retail, non-food, brick and mortar business with 1 employee. I have the EIN, and Seller's permit. I just need to know what other licenses I need. I'll eventually have an e-commerce site as well. Any help or suggestions is most appreciated.
Look at your local city/town/county to see if they have a general business license that is required. And if they have any license or permits for your particular type of business. Usually you can find on their website (or you can go down there in person)
Thank you so much for this video!! Super helpful. I just subscribed to your channel! I have a question and I am not sure if it’s related to here. In mainly worried about retirement. When you open a sole prop and pay for taxes does it include SSS retirement too? I’m thinking of doing this full time and quitting my job but I’m worried about retirement.
That's a great question! When you file your taxes as a sole prop, it will include "self employment tax" which is social security and medicare taxes. So you are still putting into the social security retirement fund. You can also put money in a regular/Roth IRA, a SEP IRA, or even an individual 401(k). The limits are different - like for an individual 401(k), assuming you have no employees, you can put in both the employee portion ($19.5K) *plus* the employer portion (up to 25% of compensation / $58K) (the numbers change each year). So there are a lot of options!
Here's a guide for hair salons in California www.cdtfa.ca.gov/industry/barbers-beauty-shops.htm it says that wigs and hairpieces are subject to sales tax (probably hair extensions would be included in that, eh?), but the services you provide as part of hair extensions would not be sales taxable.
Hello Elizabeth, amazing video. Quick question, how can I get receive/get a Sales Tax ID, if I have no employees, after providing all the information concerning my new business, I'm prompted with "Your business is not subject at this time. If you hire employees, you will need to register after paying $100 in wages in a calendar quarter." Thank you in advance!
Thanks for the info. I have a question about a business online that is not selling or manufacturing or providing any service. A record label that is only collecting royalties for the label and for the artists
great video and very informative. I do have one question and I hope you are still monitoring this channel, I am mentoring a 16 year old and she is interested in starting a business what are some resource I can read or use to help me understand how someone at this age can be part of all the process and documentation. Help LOL
Thank you for the video. In your personal opinion, is it a good idea if I use my Wix provided Private Policy and Terms/Conditions templates? Then, have an attorney review it before posting it on my website? I am an emerging California artist/painter and my aim is to do it correctly and to save some money at the same time. Thanks for any help
I haven't looked at their policies/terms but company-provided terms like that are usually a good place to start. Read them through and make sure that their policies/terms are actually what you are doing. Especially look for stuff like if you have recurring charges or non-refundable payments, or other special terms you might need.
Thank you for all this useful information. I am about to file an LLC in California, I did a Trademark Search of the word that I want to use for my new company, the word was trade marked, and all the results shows the status: Dead and Cancelled. Can I still use this word? Do I need to file a Trademark if I want to use the world along with Engineering after the word? Thank you in advance.
I'm Cali based. I just started an online crafting shop and I have received my sellers permit. Is a sellers permit the same as a business license?? And should I need the tax forms and EIN?
Sellers permit and business license are different. Business license is usually from your city/town. If you are a sole prop then you can use your personal social security number, but since getting an EIN is free, it is a good idea.
Overall yes (obviously website stuff doesn't apply if you don't have a website). You also need to figure out if you need any special permits because you are making and selling food (probably a "cottage food" operation), and you need to comply with food safety laws.
In some cities they require fire permits but I've always seen it as part of the general permit application. Of course every city is different. You go to the city about it -- the zoning or planning or business department will let you know what you need
Thank you so much! This video was really helpful! I have a question about Zoning if you see this, if I’m running an online business for accessories with no employees, just me, and no physical store front, would I still need a zoning permit for my home?
Depends on the city. Many places have a "home occupation" permit just for this purpose. In other places, as long as no employees, no people coming to your house, etc. then no permit needed.
Hi, thank you so much for this information. How do I know if I need a State Tax ID Number? Is there a website that will list the type of business that need in in CA? Another question I have, when can I get a business bank account? Right after I submit the LLC application or do I have to wait until it's processed?
If you need to pay sales tax (usually for selling products) then you need a seller's permit number. If you are going to have employees, then you need to register as an employer. Otherwise, you use your EIN for state stuff. The LLC need to be approved before you get a business bank account, because the bank will need to form that's stamped as filed.
Hi Naomie - I'm making a video on that question to post soon! The short answer is that if you use your home address for your home online business, it may be listed in some databases that are public (especially if you use it to file a DBA). Having a virtual address is great for many uses (on your website/emails, mail, sometimes for filings). Occasionally when you fill out a government form, they want both your physical address and a virtual. I have clients who use their home address, and others who do not because of privacy issues.
California does not have a state income tax ID for LLCs. If you are selling products (probably not as an event planner) you need a seller's permit / sales tax account. If you have employees, you need to create an account with EDD.
Elizabeth, First I would like to thank you for your information. I want to start a business here in CA I’m new to this field and to the Country as well . I want to do everything right so I’m covered in anyway shape or form. What type of attorney do I need to get everything done for me ?
If I’m starting a business relating to social media and entertainment, are there any special permits I would need? Considering it’s a business only working in the digital space.
Well it depends on what you are doing exactly, like there is a talent agency license www.dir.ca.gov/dlse/Talent%20Agency_License_and_Fee-Related_Talent_Services.htm
Hm it depends on the city/town and how the co-working place works. For many co-working places, you are just signing up for a membership (not a lease) -- where you may need your own permits is if you are signing a lease for space, which sometimes co-working spaces do if you want dedicated office space. Also in some city/towns the zoning is part of getting a business license / tax certificate (and you'd need a business license / tax cert) so you'd need to do that either way.
I live in Whittier CA, do I need a city license or can I just get an LA County license so I can be a mobile mechanic and service all cities within LA county?
Generally you need a business license from the most local government that applies to you. So a county business license is only for people who are in an unincorporated (non-city/town) area. The biggest thing a mobile mechanic business needs is the license from www.bar.ca.gov/
Hm so you could have your LLC and your family member enter into a partnership agreement, and then that legal business partnership gets a DBA. If you have the LLC get the DBA directly, then the LLC owns the business, and either you family member then would also co-own the LLC (which you may not want) or the family member is not an owner at all (probably not what they want).
Thank you for all the info. I’m starting a business as an Interior Designer with two jobs under my belt. I’m pretty sure I’m moving to DC next year, so I’m hesitant to start an LLC in California. I thought an FBN would be my best path to get my business legally underway with everything in place. Am i wrong about this? Thanks again for your time.
Hm yes I agree that if you are moving soon, it may make the most sense to start out as a sole proprietorship with a FBN. Then when you move to DC you can form your LLC over there.
Would I need a business license for shopify account if I'm just starting out? Let's say by the end year I'm not making profits or make little and I decide to call it quits on my business. Im in orange county
You get a business license from your town/city. Sometimes they require it before you start, sometimes it is like 30 or 45 days from when you start, sometimes there is a special rule if you make under a certain amount of money where it is waived. Go on their website or even call them
Where can I find out more about requirements to operate an LLC with no employees in CA? I'm receiving letters saying I'm required to post employment laws whether I have 1-1000 employees. I know CA has laws up the kazoo but is this really necessary? Or are these entities trying to take advantage of me?
Hi, I'm interested in opening a lemonade stand and selling at the farmer's market and pop-up events. When I apply for the business license, will I need a home occupation permit as well if I prepare the drinks at home?
Three psychiatric nurse mental health practitioners are looking to start up a private practice (with a supervising physician) for medication management and TMS clinic here in CA. Can we do a partnership or have to do a nursing corporation?
What if I am living in California temporarily (because of military) but a resident of a different state...? Do I still need to take these steps to start an online shopify store in California?
It is based on where the business is located, not really where the owner is a legal resident. Some of the requirements would apply anywhere, though. For my clients who move a lot, sometimes that's why we set up an LLC so the business is located in a particular state (versus a sole proprietorship, which is located where you are).
Depends on what you are doing in CA. Like if it’s just you being owner, that’s not “nexus” with CA. But if you have a warehouse in CA, that’s “nexus” to need to register in CA.
For many businesses, a great option is to form an LLC that's taxed as an S-Corp. But it is less about the industry and more about other factors (such as business income, personal taxes, etc).
From California here 🙋 I'm on SSDI I want to register, get an EIN, license, etc. my business But I don't plan on making an income as of yet, this is due to my lack of testimonies for my business, I'm in the Business Plan phase. I'm starting a couples/marriage coaching business. My question is, will just "owning" my business without* making earnings affect my SSDI income?
Hm it might be a problem because it would show that you are capable of "work activity" - check out this article as a place to get started: www.disabilitysecrets.com/resources/disability/can-i-start-a-small-business-and-still-
Hm it really does depend on the circumstances and what choices you make. For a sole propreitorship, it could be a few hundred dollars minimum. For an LLC or corporation, would be over $1K (because of the $800 franchise fee)
Hello, I live in San Bernardino county and my city and county they ask for so many requirements. I want to simply sell my candle and soaps online on Etsy and Amazon. I already filed as DBA individual sole proprietor in my county, paid to get my business published to the newspaper for 4 weeks. I have a question. A month a go i asked abkut zoning at my city hall and the lady wasn't sure and it makes me nervous they might deny it because I live in a mobile home. Anyways, I'm debating to either use my SSN or to get a EIN even if i won't have employees. If we want to accomulate money for our retirement, can we do that with EIN or do we have to open IRA account?
If you want to save money for retirement and have it be tax-advantaged, you'd want to use an IRS (a Roth IRA is great if you are eligible) or another retirement program like a Solo 401k.
You'd need many of these items regardless of the the of business. If you don't have a website, you don't need a privacy policy. You may not need any special licenses/permits, if your type of product doesn't require that. So it is good to look at each step to confirm whether it applies to your business.
So if understand this right, if I have no employees I don't need a state tax id? Does that apply to digital product sellers as well? Thanks so much for any help or guidance you can give me and thanks for making these videos, they are a huge help!
So if you have no employees, you don't need to the EDD employment setup. Also right if you are only selling digital products that are delivered digitally (not by something like a USB drive) in CA, there's no sales tax under current CA law.
@@ElizabethPW So if I deliver my digital products/services via dropbox, is that count as delivering digitally, I know you mentioned the cloud in your example? I heard delivering via email somehow counts as physical, is that true?
Yes you should be able to get an EIN online with the ITIN: www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online the resale permit depends on the state -- you may need additional information like drivers license / state id number.
If you are a sole proprietorship, your taxes are part of your personal tax return. For a studio/photographer, you'd likely need what I discussed in the video, including what is needed for any in person business (permits, insurance).
Hello Ms. Weinstein, I'm expanding my existing business and need to set up a S-Corporation in California, what would be your recommendation for not only a Corporation, Worker's Comp and Medical Insurance?
I'm not sure of your questions exactly, but for medical insurance a small business should check out www.coveredca.com/forsmallbusiness/ and for worker's compensation I'd get that from the rest of your business insurance, you can look at www.thehartford.com/workers-compensation/california or www.nextinsurance.com/workers-compensation-insurance/ to get quotes.
@@ElizabethPW I appreciate your videos and this on especially bc I used it to incorporate our business! Is there a way that I can reach out to you if I have a question?
@@ElizabethPW do you have a video on what to do when you’ve told the irs that your S-Corp will start transacting business in Q2 but things get delayed and you want to start Q4 instead? Also, what if you’ve filed two DBA’s for your SCorp but one of those DBA’s is no longer transacting business so it won’t transfer to that S-Corp, is there a form needed to be filed with the state or IRS?
Ah so really the IRS cares more about the entire year so Q4 should be okay - it all goes on the same annual tax form. If you stop using a DBA the most you'd need to do is officially "abandon" the DBA with the county/state where you filed it - but it will automatically abandon when you don't pay renewal fees, so some people just do that.
This is kind of off-topic but I was wondering if you’re allowed to write some of your moving expenses off on your taxes if you move from California to Texas for your job?
Not for most people anymore, but there are a few exceptions. Here’s an IRS calculator that lets you know: www.irs.gov/help/ita/can-i-deduct-my-moving-expenses
I suspect one big issue for a rabbitry will be about permits and zoning - obviously that business would not be allowed everywhere. Also it depends upon the purpose (meat or selling as pets etc.) - you'd need to do whatever license is required for that aspect of the business, too.
If I want to start a small online business on my own. Is it more popular in general to get LLC or Sole proprietorship? I heard that LLC protects you from Liability but it comes with more paperwork. Just curious which one is generally more popular.
Sole proprietorships are the most popular - according to the IRS, 73% of businesses are formed that way. With my clients, many of them start out that way because it is less expensive and simple, and then up-level to an LLC when they are making more money. It can make sense to start out as an LLC in particular kinds of businesses, like if you have employees.
It is no problem as far as forming the LLC or Corporation or getting a DBA. The problem is if they have trademark rights over that name and then you start operating in a place where you might infringe those rights
Hello, I’m hoping to start my own at home esthetician business. In order for me to have a business in my home is there any advice you would give to me? I’m praying to only have my esthetics business in my home until it gives me enough cash to rent out a room at an actual salon. I just want to be on the safe side of owning a at home business
Hm the biggest issue for you, with clients in your home, is zoning / permits. Check with your city/town about “home occupation” businesses, to see if there are special rules or a permit required. Their website should have info
I made a website and want to start my e-commerce store. Can I start my business first to see if it even sells products before I do all of the legal things? or complete all of the legal requirements before I start?
Hm well certain things you can totally do later. Like you don't need an LLC or Corporation on day one. But some things it really depends -- like in some cities you are required to get a business license before you start (not in all). That's a good video idea though, for the minimum legal setup to test a business idea.
@@ElizabethPW I'm in Los Angeles, California too. Do we need a business license first before we start? I'm starting an e-commerce store. I agree that's a good idea.
@@ElizabethPW Also on google it says it will take 45 days to get a business license. Can we start our business after filing or do we have to wait 45 days to start our business?
If you apply for an LA business license (business tax certificate) you immediately get a temp one to use until you get the official one - business.lacity.org/start-business/register-your-business/business-tax-registration-certificate
Hello. Great video! I am a Nurse Practitioner wanting to start a House Calls/Telehealth practice in California (Bay Area). I filed for an LLC over 2yrs ago, but have never done anything with it besides paying to keep it registered and starting a bank account. Now, that I am really serious about the practice....I don't know if I can start this type of business as an LLC? Do I need a PLLC, S-corp, etc???
That's a great question! If you are practicing as an NP in California and you want to form a business entity, it needs to be a professional corporation (in CA we don't yet have professional LLCs). Usually people form a professional corporation that's taxed as an S-corp. My understanding is that you have to include "nursing" or "registered nursing" in the corporation name.
Hi, I have some doubts on doing an online business.I would like to sell acrylic paintings online.Do we require both business license and sellers permit to sell paintings?And would also like to know the other legal requirements for selling the paintings online.I am on H4 visa and do have EAD.Kindly help.
If your city/town/county in CA requires a business license, yes you'd need it to sell paintings. Yes you'd need to get a sellers permit to sell painting generally because they are a product, unless you only sell them on a marketplace facilitator site like etsy.
