1. Run the numbers first
Before you file anything, know what opening costs and what you can realistically earn. The Costs & revenue forecast calculator shows profit, staffing and break-even for your idea.
2. Choose and register your business structure
A corporation or LLC doing business in California generally must form or qualify with the Secretary of State and keep an agent for service of process. Which structure fits is a business and tax decision — talk to an adviser.
- File an initial Statement of Information within 90 days of registering. After that, corporations file every year; LLCs every two years.
3. Plan for California's $800 minimum tax
LLCs generally owe $800 a year, including the first year in 2026. New corporations are exempt from the $800 minimum in their first taxable year, though income tax can still apply.
4. Get an EIN from the IRS
You need one if you'll have employees or are a partnership or corporation. For 2026 payments, Form 1099-NEC generally applies to contractor payments of $2,000 or more.
5. Seller's permit (if you sell goods)
Taxable sales of physical goods generally require a free seller's permit from CDTFA.
6. File a DBA if you use a trade name
Operating under a name other than your legal or entity name means filing a Fictitious Business Name with your county and publishing it.
7. Register as an employer before payroll
Register with EDD within 15 days after paying more than $100 in wages in a calendar quarter. Eligible employers without a retirement plan must register with CalSavers or claim an exemption.
8. Get your city license and permits
Most cities require a business license plus zoning approval for your location. In Sunnyvale, see how to get a Sunnyvale business license.
Your exact list depends on your business
Restaurants, contractors, salons and real estate agents each have extra licenses. Pick your business to see every rule that applies, then track dates with the Deadline planner.
General information only, not legal or tax advice. Rules change — confirm each step with the official source linked above or a licensed professional before you act.