To start a business, validate the idea, pick a structure, register with your state, get a free EIN from the IRS, register for state taxes, get your licenses and permits, open a business bank account, and get insurance. Pick your state and business type below to get that roadmap in order, with official links and state filing fees.
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California · LLC
Typical ranges, not quotes
About $350-$2,000 on top of state fees
Online store or ecommerce · LLC · solo · no employees
Filing fees, licenses, and insurance are wasted on an idea nobody pays for. Talk to 10-20 potential customers, check competitors, and try to pre-sell before you register. Score the idea with Idea Score's AI report to see demand, competition, and risks first.
Recommended: LLC. With partners, employees, or physical products, an LLC keeps business debts and claims away from your personal assets for a modest state fee. A sole proprietorship costs less but offers no liability protection. Pick a corporation only if you plan to raise outside investment.
Your name must be distinguishable from businesses already registered in your state. Also check trademarks and the domain name before you print anything.
This filing creates your LLC. You'll name a registered agent: a person or company with a physical address in the state who accepts legal mail during business hours. You can be your own registered agent if you meet the state's rules.
California: Most businesses must pay a minimum $800 annual franchise tax to the Franchise Tax Board.
Even single-owner companies benefit from a written agreement: banks may ask for it and it supports your liability protection.
A single-owner business without employees can use the owner's SSN, but a free EIN keeps your SSN off invoices and W-9s and most banks ask for one. Apply directly with the IRS; never pay a website for an EIN.
Selling taxable goods usually means collecting sales tax and filing returns. Register before your first sale. Online sellers may also owe tax in other states once they pass those states' economic nexus thresholds. A few states have no statewide sales tax; the tax agency page tells you what applies.
Most cities and counties require a general business license or tax registration, even for online and home-based businesses. Call or search your city and county clerk's site.
Regulated activities (food, alcohol, childcare, construction, health, finance, firearms, transport, and many trades) need a state or federal license before you operate. Look up your activity on the state business portal.
Keeping business money separate makes taxes easier and helps protect your liability shield. Bring your EIN, formation documents, and ID.
Record every sale and expense from day one and keep receipts. A spreadsheet works at first; accounting software saves time at tax time.
No one withholds tax from business profit. If you expect to owe $1,000 or more for the year, the IRS generally expects quarterly estimated payments. Set aside a share of every payment.
Covers customer injuries and property damage claims. Landlords, clients, and event organizers often require it. Many insurers bundle it with property coverage as a business owner's policy (BOP).
Covers claims that a product you made or sold caused injury or damage. Marketplaces and wholesale buyers may require it. It's often part of a general liability policy, so ask.
Most states require LLCs to file a recurring report to stay in good standing; missing it can mean late fees or administrative dissolution. California LLCs file a biennial report with a $20 fee (Statement of Information, due within 90 days of forming and every two years after).
Add license renewals, sales tax filing dates, estimated tax deadlines, insurance renewals, and payroll filings to one calendar. Then launch and track your first customers.
Note: Beneficial ownership (BOI) reporting: FinCEN exempts companies created in the United States and U.S. persons (interim final rule, March 2025, made final in August 2026). Only entities formed under foreign law and registered to do business in a U.S. state must report. There is no fee to file directly with FinCEN. FinCEN: Beneficial ownership information https://www.fincen.gov/boi
Disclaimer: General information, not legal or tax advice. Requirements and fees change; confirm on the official state pages linked above. Data verified on October 23, 2026.
Business startup checklist
Talk to potential customers, check competitors, and try to pre-sell before you spend money on filings.
Pick a sole proprietorship, LLC, or corporation based on owners, liability risk, and plans to raise money.
Search the name in your state's business registry, then file a DBA or your LLC or corporation formation documents.
Apply for an Employer Identification Number directly with the IRS online. It is free.
Get a sales tax permit if you sell taxable goods, and register for withholding and unemployment insurance if you hire.
Get your city or county business license plus any state, health, zoning, or industry permits.
If you hire, collect Form I-9 and W-4, report new hires, get workers' compensation, and set up payroll.
Separate business money, set up bookkeeping, and plan for quarterly estimated taxes.
Get general liability insurance, plus professional or product liability coverage when your business needs it.
Calendar annual reports, license renewals, and tax deadlines, then launch.
Get your EIN only from IRS.gov; it is free. Federal license and permit guidance is on the SBA. The checklist covers 10 phases.
Common questions
Validate the idea, choose a structure, search and register your business name with your state, get a free EIN from the IRS, register for state taxes, get local and state licenses and permits, set up payroll if you hire, open a business bank account, get insurance, and calendar your annual filings. The checklist above puts these in order for your state and business type.
Apply online at IRS.gov. An EIN (Employer Identification Number) is free and the online application issues it right away. Websites that charge for an EIN are not the IRS. You need one if you hire employees or form a partnership, multi-member LLC, or corporation; it's optional but recommended for a single-owner business.
Almost always. Most cities and counties require a general business license or tax registration, even for online and home-based businesses, and regulated activities such as food, alcohol, childcare, and many trades need state licenses. Check your city or county clerk and your state's business portal, linked in the checklist.
Search the name in your state's official business entity search to make sure it's available. An LLC or corporation registers its name when it files formation documents with the state. A sole proprietor or partnership using a name other than the owners' legal names files a DBA (assumed or fictitious name) with the state, county, or city.
It varies by state. The main up-front cost is the state's filing fee for articles of organization, which ranges from $35 to $500 among the states whose fee we verified on official pages. Many states add an annual or biennial report fee or a state LLC tax. Pick your state in the checklist to see the filing fee from the state's official page, or a link to check it where we couldn't verify the number. The EIN is free.
Keep planning
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