Assuming you have a great business idea and the entrepreneurial spirit to make it happen, there are a few key things you need to do to get your business up and running in California. Part of being a responsible business owner is making sure you have all the proper documentation in order before you open your doors (or website) to the public.
In the following article, San Diego experts for business formation walk you through the process of everything you need to do to get your business up and running.
What documents do you need to start a business?
California has specific requirements for businesses, so it’s crucial that you’re aware of what’s needed from the beginning. To save you some time and stress, we’ve compiled a list of essential documents every new business owner in California is required to have:
1. Business plan
A business plan is one of the most essential terms every entrepreneur should be familiar with. It’s the document that outlines your business goals, strategies, and how you intend to achieve them. It’s important to have a business plan not only for yourself and your partners but also for investors or lenders who may be interested in supporting your new venture.
2. DBA certificate
A DBA, or “doing business as,” certificate is required if you’re operating under a name other than your personal legal name. You can apply for a DBA through the county clerk’s office in the county where your business is located.
3. Federal tax ID number
Every business needs a Federal Tax ID Number, also known as an Employer Identification Number (EIN). This number identifies your business for tax purposes and allows you to open a bank account and apply for business licenses and permits. You can apply for an EIN online through the IRS website.
4. Seller’s Permit
If you’re selling any type of goods or services in California, you must have a Seller’s Permit. This permit allows you to collect customer sales tax and remit it to the state. You can apply for a Seller’s Permit online through the California Department of Tax and Fee Administration website.
5. Licenses and permits
Depending on the type of business you’re operating, you may need one or more licenses or permits from the state of California. For example, if you’re opening a restaurant, you’ll need a food handler’s license. You can find out what licenses and permits are required for your business by searching the Business Licensing Wizard on the California Business Portal website.
6. Certificate of Good Standing
A Certificate of Good Standing, also known as a Certificate of Existence, is a document that proves your business complies with state laws and regulations. Banks and other financial institutions require this certificate before they’ll lend money to your business or open a line of credit. You can request a Certificate of Good Standing from the California Secretary of State’s office.
7. Articles of Incorporation
If you’re forming a corporation in California, you’ll need to file Articles of Incorporation with the Secretary of State’s office. These articles must include information such as the name and address of your corporation, the names of its directors, and the number of shares it’s authorized to issue.
8. Operating Agreement
An Operating Agreement is a document that outlines the ownership and management structure of your LLC. This agreement should be created even if you’re the only owner of your LLC, as it can help prevent disagreements down the road.
9. California LLC Statement of Information
The California LLC Statement of Information is a form that must be filed with the Secretary of State’s office every two years. This form provides updates on changes to your LLC, such as the addition or departure of members.
Who are San Diego’s leading experts offering business formation?
There are a lot of things to think about when you’re starting a new business. But one of the most important things is ensuring your business is set up correctly from a tax standpoint. That’s where David York’s Tax Service specialists come in.
We can help you with everything from setting up your business entity to ensuring you’re taking advantage of all the available tax breaks. We’ll work with you to make sure your new business is on solid footing from a tax perspective, so you can focus on making your business a success. If you’re starting a new business in San Diego County or anywhere in the region, give us a call. We’d be happy to help you get your business off to a great start!