Free guide · Ecommerce in California

How to start an ecommerce business in California.

California is the largest and most trend-setting consumer market in the country, which makes it powerful ground for a direct-to-consumer brand. Beauty, wellness, and creator-led brands in particular thrive on the state's culture and audiences. Be aware of the costs before you form here, especially the state's annual franchise tax, but for the right brand the market more than earns it back.

Start with a product

The best ecommerce products to sell from California.

These eight are tuned to California's real strengths, from what sells to how it ships. Tap any one to explore it and find more like it inside the platform.

1. 1
   Direct-to-consumer beauty and skincare

   California sets beauty trends, giving a skincare or cosmetics brand real credibility.

2. 2
   Wellness and supplement brands

   A health-conscious, high-income audience spends heavily on wellness products.

3. 3
   Creator and influencer-led brands

   Los Angeles is the global center of the creator economy, helping brands build audiences fast.

4. 4
   Sustainable and eco-friendly goods

   Strong environmental values make green products resonate with California buyers.

5. 5
   Specialty and organic food brands

   The state's food culture and farms support premium packaged goods that ship nationwide.

6. 6
   Activewear and athleisure

   An active, style-aware population drives demand for fitness apparel.

7. 7
   Home and lifestyle products

   Design-forward home goods sell well to a large, style-conscious audience.

8. 8
   Print-on-demand and merch brands

   No inventory is needed, and the creator scene makes merch a natural fit.

Why California works for online business.

California is the largest economy in the United States and the country's trend-setting consumer market, which is ideal for direct-to-consumer beauty, wellness, and creator brands. Be aware of one clear cost: the state charges an $800 minimum annual franchise tax on LLCs and corporations, and income tax rates are among the highest in the country. For a brand that can tap into California's audience and culture, the sheer size of the market can more than earn those costs back.

Registering an online business follows the same path as any other business in the state. For the full picture, read our complete guide to starting a business in California.

The steps to launch.

1. 1

   Form your business with the California Secretary of State

   Most online sellers form an LLC for liability separation. File directly with the California Secretary of State and pay only the state's own filing fee. Note California's $800 minimum annual franchise tax on LLCs and corporations. Our free name generator checks the matching web domain with every store name it suggests.

2. 2

   Get your EIN free from the IRS

   The Employer Identification Number is your business tax ID, required by processors and banks. The IRS issues it directly at irs.gov in minutes, at no charge. Get the EIN at irs.gov ↗

3. 3

   Register for a California seller's permit

   Register with the California Department of Tax and Fee Administration for a seller's permit so you can legally collect and remit sales tax on orders shipped to California customers.

4. 4

   Pick your platform: Shopify, Etsy, or Amazon

   Shopify gives you your own branded store, Etsy connects you to a handmade and vintage marketplace, and Amazon offers the largest built-in audience. Many sellers combine them as they grow. When you set your prices, our free pricing and margin calculators help you cover fees, shipping, and profit.

5. 5

   Set up payments and a business bank account

   Connect a payment processor to accept cards, and open a business bank account with your EIN and formation documents to keep business money separate from personal money.

6. 6

   Handle sales tax nexus as you grow

   Selling into other states can create a sales tax obligation there once you cross their thresholds. Track where your customers are and register in new states as you reach them.

On sales tax: California requires online sellers to collect sales tax on taxable goods sold to California customers, so register for a seller's permit with the California Department of Tax and Fee Administration before you start selling.