California Business License: A Requisite To Do Business

2007-11-09 05:11:17

( Automobiles )



Whether your business is operating as corporation or not, you are required to obtain a California business license to do business in the state. And regardless of your business size or name, most cities require all businesses including home businesses to register with the tax collector of the city where they do business. Or, if your business is located in an unincorporated or rural area, a registration with the county clerk is usually required.

You may also need to get a specialized California business license if you engage in selling firearms, liquor, or food. The state may also require professionals to have another form of license to practice in California. For instance, a real estate salesperson or broker has to get a California real estate license before that person would be allowed to engage in the business of real estate.

If you wonder why you have to register with the local tax collector by getting a California business license, then you should realize that the local, state and federal governments need to tax incomes generated from the business. The registration requirement is the local government's way of monitoring your business to ensure that they can collect taxes that your business owes. In fact, they apply different criteria as basis for various taxes, such as net profits or gross income, number of machines or vehicles, total payroll or size of your workforce, or even seating capacity.

You will be charged with a California business license fee according to the category of your business. This fee is often non-refundable and payable upon submission of your application for a California business license. If you do not have the time to process your California business license, a number of companies have been offering their services to do the job for you. You can find them through your local phone directory or the internet.


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