Free guide · California

How to start a business in California.

Business formation in California runs through the California Secretary of State, the official government office. You can file there directly for just the state's own filing fee, and nobody can legalize your business "better" than the state itself. Fees change, so the current number is always on the official site.

Storing it saves Start a Business to your idea vault with the full checklist, free, so you can come back and launch when California paperwork day arrives.

Start with an idea

The 10 hottest business ideas to start in California right now.

Registration comes later. First, the fun part: the idea. These ten are tuned to California's real economy right now. Tap any one to explore it and find more like it inside the platform.

1. 1
   Software and AI product studios

   The world's deepest tech talent pool and capital sit right here.

2. 2
   Content creation and influencer businesses

   Los Angeles is the global capital of media and creator economy work.

3. 3
   Specialty and organic food brands

   California's food culture and farms feed premium consumer brands.

4. 4
   Solar and clean-energy installation

   Aggressive climate policy and sun make renewables a booming trade.

5. 5
   Wine, craft beverage, and agritourism

   Napa, Sonoma, and Central Coast regions draw premium tourism dollars.

6. 6
   Home renovation and ADU construction

   High home values and ADU-friendly laws keep builders in demand.

7. 7
   Wellness, fitness, and beauty services

   Health-conscious, high-income consumers spend heavily on self-care.

8. 8
   Ecommerce and DTC brands

   Huge population and logistics network make direct-to-consumer viable.

9. 9
   Immigration and multilingual professional services

   One of the most diverse populations in the world needs these services.

10. 10
    Tourism experiences and tours

    From beaches to national parks, California is a top global destination.

Why California is a great place to build.

California is the largest economy in the United States and would rank among the largest in the world on its own, with unmatched access to talent, capital, and customers. Be aware of the costs: the state has an $800 minimum annual franchise tax on LLCs and corporations, and among the highest income tax rates in the country. For the right business, the sheer size of the market more than earns those costs back.

Local help for California founders.

California founders have real, free help within reach. The state's Small Business Development Center (SBDC) network offers no-cost advising, and volunteer mentors through SCORE chapters have built businesses like yours. The Secretary of State and state commerce resources publish plain guides on formation, licensing, and taxes, so lean on them before you ever pay a middleman.

California, specifically.

From Silicon Valley to Hollywood to the Central Valley's farms, California is where a big idea can find a big audience. San Francisco and San Jose drive tech, Los Angeles drives culture, and San Diego blends biotech with the beach. It is expensive and competitive, but no state dreams bigger.

The six steps, in order

1. 1

   Pick your business structure

   Most first businesses in California choose an LLC for the liability separation between the business and your personal life. Sole proprietorships are simpler but offer no separation; corporations fit businesses raising investment.

2. 2

   Check that your business name is free

   Search the California Secretary of State's business registry to confirm nobody in California already holds the name, and check the matching web domain at the same time. Our free name generator checks the domain with every name it suggests.

3. 3

   File your formation documents with the California Secretary of State

   This is the official step that makes the business real. File directly on the state's own site and pay only California's filing fee. Every state requires a registered agent with a physical address in the state; if you live in California, you can usually be your own.

4. 4

   Get your EIN free from the IRS

   The Employer Identification Number is the business's tax ID. The IRS issues it directly at irs.gov in about five minutes, at no charge. Never pay anyone for an EIN alone. Get the EIN at irs.gov ↗

5. 5

   Check for licenses and permits

   Many businesses also need a city or county business license, and some industries need California state licenses. The California Secretary of State's site and your city hall list what applies.

6. 6

   Open the business bank account and connect payments

   Keep business money separate from day one: it protects the legal separation your LLC exists for and keeps taxes clean. Bring your EIN and formation documents to the bank. Our free Get Paid directory lists business banks and payment processors in the order to set them up.