In order to locate a sole proprietorship in California, you must first select a business name and confirm that it is available. Using the California Secretary of State’s online business search tool, you can determine whether your chosen company name is available. You can register your business with the California Secretary of State once you have confirmed that the name you want is accessible.
Contrary to corporations and limited liability companies (LLCs), sole proprietorships are not required to register with the California Secretary of State. The county clerk in the county where your business is located must receive a fake business name declaration if you want to conduct your business under a name other than your own.
Depending on the nature of your business, you may need to obtain one or more licenses or permits if you intend to run it in California. The particular licenses and permits needed will change depending on the region and sector of your company. By occupation and area, the California Department of Consumer Affairs offers a searchable database of licenses and permits needed.
You should be aware that creating an LLC rather than a sole proprietorship requires filing paperwork with the California Secretary of State and paying a filing fee. As of 2021, it will cost $70 to register an LLC in California. In addition, a yearly franchise tax that is based on the LLC’s earnings is imposed on LLCs in California.
Last but not least, you can get a certificate of good standing in California by getting in touch with the Secretary of State’s office in California. A certificate of good standing attests to your company’s legitimacy in California and confirms that it complies with all legal obligations. As of 2021, a certificate of good standing costs $5 and is only good for six months.
Choosing a business name, registering your company, and acquiring any necessary licenses or permissions are the final steps in forming a sole proprietorship in California. You should be aware of the additional registration and franchise tax requirements if you are thinking about creating an LLC instead. And if you require a certificate of good standing, get in touch with the Secretary of State’s office in California.