It can be exciting to start a business in California and it also comes with several legal considerations. It requires thorough planning and research, but the investment of time and attention can support the business’s long-term success.
Deciding on a structure, name and location
It’s important to choose a business structure like a sole proprietorship, partnership, corporation or limited liability company, depending on the business owner’s needs. Each has specific tax and legal guidelines.
It can be helpful to create a business plan, in which it lays out all of the important aspects of the business.
The business owner will need to choose a name that is not already in use by another entity in California. A name search is available through the California Secretary of State. Then, the business name will need to be registered.
The business owner must also apply for the appropriate licenses and permits, pay taxes and decide where the business will be located. The business owner should be aware of building codes that apply at the location, along with any zoning regulations that permit or prohibit commercial use of the property.
California also has environmental regulations that the business owner must adhere to. These may apply to manufacturing businesses and other businesses that handle hazardous materials.
If the business will hire employees, it must follow wage and hour regulations, properly classify employees, and ensure that it meets accessibility requirements.
Some business owners consider hiring entities that are familiar with human resources functions, like payroll, time tracking and training.