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What to Consider When Starting Your Californian Business


Are you about to start a business in California? Then you need to make sure that you have done your research when it comes to starting your company in the state.

California is a great place to start a business, and as of last year, California is the 5th largest economy in the world. Running a business in California can be a confusing experience. There is a lot of information to take in and many rules to follow.

This article explores what you need to consider when starting your business in California.

Consider a Business Idea

California is the most populous state in the United States. It is also one of the most diverse states in the country. This diversity has led to a thriving economy and a variety of booming industries. Before starting any business, you need to think of the idea and research it.

You will also need to check your interests, skills, availability, and the reasons you want to set up the business. These will be the fuel to your business.

Think of the Legal Structure

The legal structure of a business is another crucial decision you will make. It will determine how your business is taxed, what type of liability protection you have, and how much control you have over your company.

There are four legal structures for a California business: sole proprietorship, partnership, corporation, and limited liability company (LLC). You must determine the kind of business you want to set up as the legal structures and requirements differ.

For example, a California courier services company that operates as a sole proprietorship is different from another that chooses to run as a limited liability community (LLC).

Think of Your Business Name

A business name is the first impression a customer will have of your company. It is important to consider your business name when starting a business in California. The name should not be the same as or similar to an existing entity which would confuse customers.

In case you’re struggling to find the perfect name, you might want to consider using a business name generator to help you brainstorm creative and unique options.

It also shouldn’t contain worlds prohibited by law or obscene and vulgar words. If you feel stuck finding a name, you can always contact a business consultant to help you out.

The Required California Licenses and Permits

The state has many different licenses and permits that you need to consider when starting a business in California. While all fall under business licenses, they are different from one to another. For example, if you are in the food and beverage industry, you will need to fulfil different requirements compared to a person setting up a dry-cleaning business.

Once you have decided on the business, you must check out the California business conditions and determine if you can fulfil them.

Insurance and Taxation

California is home to some of the world’s largest companies. It also has some of the highest taxes in the country. This means that when starting a business in California, you need to consider insurance and taxation needs and other factors such as labour laws and regulations. By understanding these regulations, you stay out of trouble with the concerned authorities.

Set Up Your Fixed Assets

Fixed assets are hugely important to a new business. They’ll help you accrue revenue and grow the business. Your business will likely need property or equipment to be successful. This could range from a retail site and a warehouse to heavy machinery and equipment. As a new business, you’ll need to sort out your fixed assets at the outset. These fixed assets will come with a multitude of contract options, and you’ll also need to work out the accounting treatment for each asset in line with GAAP ASC 360. Setting up these fixed assets can be a little overwhelming when you’re first going into business, but they’re needed to ensure business success. Whether in California or anywhere else in the USA, make sure you dedicate time to setting up your fixed assets.


Starting a business in California can be an inspiring time. It is important to understand the steps involved and know what you should consider when getting started. We hope that this article was able to help you to get your business started in the right direction.