4 How To Start A Small Business In California

(doylc.com) How To Start A Small Business In California - Small businesses are defined by the average number of employees they have in a year and their average annual revenue. In addition, a small business can adopt any for-profit structure as long as it is registered in the United States; independently owned; and are not dominant in their field at national level. US Small Business Administration US government agency focused on helping small businesses Go to Source To start a small business in California, choose a business structure, plan your business, register your business, and fulfill as needed any additional requirements.

• Choosing a corporate structure

Research and plan your business and personal goals. Before you start your business, take some time and determine what you want to achieve. Starting a business is not an easy task and you should be confident in your skills before embarking on this journey. Write down your personal and business goals to get an idea of ​​what you want to do. This exercise will also help you decide how to structure and plan your business.

The Small Business Administration offers an assessment to help you through this process. Additionally, they offer a small business planner that walks you step-by-step through the creation process. Use these resources as you see fit.

Get business support. California offers a number of resources for entrepreneurs and business people. Use these resources to get help starting your business. Contact some of these resources and ask to set up meetings or go to events. These organizations can help you find the path that's right for you. Some of these resources include:

The California Business Incentives Gateway website, https://cbig.ca.gov, which catalogs and showcases many of the business support programs available in California in a searchable database.

small business development centers;

California Association for Local Economic Development;

service core of retired executives; and

Centers for International Trade Development.

Hire a lawyer. When you decide on a corporate structure, you will inevitably make numerous decisions that affect your legal rights and the legal rights of those who will work for you. For these reasons, you should consider hiring a business lawyer to guide you through the legal aspects of choosing a business structure and starting your business.

Ask family and friends if they can give you a recommendation. Talk to people who have started businesses in the past or people who make a living from the business.

Take advantage of the California State Bar Attorney Referral Service. You can call (866) 442-2529 and speak to someone about your needs. They will then put you in touch with a number of qualified lawyers.

Conduct initial consultations so you can speak face-to-face with any prospective attorney. This gives you the opportunity to get to know them and assess their ability to successfully help you launch your business. Be sure to ask about fees.

Choose a structure. California offers a number of business structures that you can use to achieve specific things. Choose the corporate structure that best suits your needs. You can choose from the following types:

A society that exists separately from you, the owner. While a corporation can protect you from personal liability in some cases, a corporation is taxed, as are shareholders.

A limited liability company (LLC) which provides liability protection like a corporation but is not taxed as a corporation. Instead, the LLC's income is usually taxed by the individual on its income.

A partnership formed by two or more people conducting business for profit. Each owner is personally liable for the liabilities of the partnership. Gains are taxed as individual income.

A sole proprietorship, which is a business owned by one person. The owner is personally taxed on income and personally liable for the company's debts.

• How to planning business in California

Create a business plan. This plan should include the financial, managerial, marketing, manufacturing, and production information needed to run your business successfully in its first 5 years. You need to present your business plan to investors, potential partners and other professionals.

The US Small Business Administration (SBA) and other organizations have instructional articles on creating a business plan.

Finance your business. Many people start looking for funding before submitting any official paperwork. Check the California Business website for ideas on who to contact. In general, you should approach banks and other financial institutions, governments, and venture capital firms.

Choose a location. Due to its large economy, different cities in California offer access to different customers. For example, San Diego is known for its science and engineering companies, Los Angeles supports many entertainment companies, and San Jose is known for its technology companies.

Contact the local chambers of commerce in these and other cities to get an idea of ​​how the infrastructure in each location can work to your advantage.

Choose a name. It's a good idea to choose a name that identifies the type of business you will have. Complete a Name Availability Request form at http://bpd.cdn.sos.ca.gov/corp/pdf/naavinquiryform.pdf and return it to the Office of the Secretary of State. You can check up to 3 names at a time.

Reserve a name for up to 60 days before submitting your official business records. You must fill out a form and make a $10 payment to reserve it for that period. You can find the form at http://bpd.cdn.sos.ca.gov/corp/pdf/name-reservation-request-form.pdf.

Apply for intellectual property protection. If you want a unique name or logo, consider applying for trademark protection with the United States Patent and Trademark Office (USPTO). If you meet certain criteria, your brand will continue to protect your intellectual property in the future. You can apply online through the USPTO website.

Designate a registered agent. This person or entity must be a California resident and will be designated to receive service of process (ie, court records) if you are sued.

There are companies that you can engage to act as your registered agent. They pay a small fee and in return they will be your registered agent.

Drafting of operating agreements. It's always a good idea to draft documents that explain how your business is run and managed. When forming an LLC, you must actually have one. Company agreements address some, if not all, of the following issues:

members, their dues and profit sharing;

management of the company;

rights and obligations of members;

interest transfers;

termination of membership;

Resolution; and

Changes to the Operating Agreement.

How to registration of business in California

Prepare your required documents. The type of document you need to file with the Secretary of State depends on the corporate structure you choose. All documents and forms can be found on the Secretary of State's website. Use the forms below for the following types of businesses:

Articles of Association if you form a corporation. This form asks you to provide the Secretary of State with the company's name, purpose, registered agent and corporate address. The various forms can be found at http://www.sos.ca.gov/business-programs/business-entities/forms/#cacorp.

Articles of Association if you form an LLC. This form will ask for the name, address, registered agent of the LLC and how the LLC is managed. The form can be found at http://bpd.cdn.sos.ca.gov/llc/forms/llc-1.pdf. In addition to filing the articles of incorporation, you must also file, but are not required to file, an operating agreement.

Declaration of company status if you form a general partnership. In this form you will be asked for the name, address, names of partners and designated representatives of the partnership. The form can be found at http://bpd.cdn.sos.ca.gov/gp/forms/gp-1.pdf.

If you are founding a sole proprietorship, you do not need to submit any documents.

File your documents. In California, you must either mail the required forms in or hand them in to the Secretary of State.

To send your documents by mail, mail them to "Secretary of State, Business Entities, PO Box 944260, Sacramento, CA 94244-2600" along with the required fee.

To turn in your forms in person, bring them to "1500 11th Street, 3rd Floor, Sacramento, CA 95814".

Pay the required fees. You must pay a fee for each type of submission.

If you are filing articles of incorporation, the fee is $100.

If you are filing articles of incorporation, the fee is $70.

If you file a partnership power of attorney, the fee is $70.

Register your fictitious company name. A fictitious company name must be entered if you are a sole proprietorship doing business under a name that does not include your legal name; a partnership; or a company doing business under a name that is not its legal name.

They do not register that name with the Secretary of State. Instead, you must contact your city or county clerk or clerk where the principal place of business is located and ask how to do this.

• Fulfill additional requirements

Obtain an Employee Identification Number (EIN). Your business likely requires an EIN, which is used by the Internal Revenue Service (IRS) for tax purposes. You can apply for an EIN if your principal place of business is in the United States and you have a social security number or tax identification number. You can apply online through the IRS website and will receive an EIN once you complete the application.

Register for state taxes. In California, certain businesses are required to register for state taxes that are levied against you each year. If you have filed the necessary documents with the Secretary of State to incorporate your business, your information has been submitted to the California Franchise Tax Board and you do not need to do anything else.

You may also be responsible for certain corporate taxes, payroll taxes, and sales, property, and use taxes. Be sure to log into all required departments.

Obtain licenses and permits. Most cities and counties require you to apply for and obtain certain licenses and permits in order to conduct business. These permits and licenses may include parking and fire protection measures.

Contact your city's business licensing department to determine what to do.

Submit regular reports. From time to time you will need to submit updates regarding your company to the Secretary of State. In California, these documents are called Statements of Information. They usually have to be submitted either annually or every two years.

You can usually submit these reports online, but sometimes you may need to submit them by mail or in person.