The state of California is known for its rich history and beautiful natural beauty. The state is also a place where entrepreneurs are welcomed with open arms and business owners can easily register their business name. In this article, we will discuss the steps that you need to follow to register a business name in California.
In California, there are many business entities which can be used by the businesses to operate their business activities. But if you want to start your own business then it is best to register your business name using a sole proprietorship.
Sole proprietorship is the simplest business entity where you only need to register one business name to start your business. You don’t need any license to start your business and you don’t have to pay any fees to register your business name.
You will also need to obtain a Business Tax Identification Number (BTIN) before starting your business. The BTIN is also known as a Federal Employer Identification Number (FEIN) and it is required by the federal government to operate a business in the United States.
The steps to register a business name in California are:
1: Determine the type of business you are planning to start
If you want to start a business in California then you must first determine which type of business entity you are going to use. There are two types of business entities that can be used by the businesses to operate their business activities. These are limited liability companies and sole proprietorships.
Limited liability companies (LLCs)
LLCs are also known as partnerships. It is a business entity where you need to register a business name with a legal address. The owners of an LLC are known as members and they will have unlimited liability. This means that if any member of the LLC fails to fulfill his or her obligations then it will affect the entire business.
Sole proprietorship
A sole proprietorship is the simplest business entity where you don’t need any license to start your business. You only need to register one business name and one business address for your business. The owner of the sole proprietorship is also known as a natural person and he or she will have unlimited liability.
2: Determine the legal requirements
Before starting your business, it is best to determine the legal requirements that are required by the state. It is important to understand the legal requirements to avoid any legal issues later on.
The legal requirements for sole proprietorships are:
You need to obtain a Business Tax Identification Number (BTIN)
If you want to start a business in California then you need to obtain a BTIN. It is also known as a Federal Employer Identification Number (FEIN). You can get a BTIN from the Department of Finance.
You need to register your business name
To register your business name you need to file a certificate of authority with the Secretary of State’s office. The certificate of authority will contain the name of your business, your legal address and the name of your business agent. The name of the business agent is known as a registered agent.
3: Obtain a business license
The state of California requires every business entity to have a business license. A business license is required to operate your business. The business license will be issued by the city or county in which you are planning to operate your business.
The steps to obtain a business license are:
Visit the local business licensing office in the city or county where you want to start your business
You need to provide your business name and business address along with other necessary documents
After you have provided all the documents, you will get a business license
4: Register your business name
After obtaining a business license, it is best to register your business name. You will need to provide your business name, address, and contact information to the Secretary of State’s office.
You can register your business name online using the Secretary of State’s website. The registration process is very simple and it takes only a few minutes.
5: Obtain a tax identification number
The state of California requires every business entity to obtain a federal tax identification number. The tax identification number is also known as a Federal Employer
