California Small Business Compliance Requirements
The state and federal requirements that may apply to a small business or LLC in California — registrations, taxes, licenses, and ongoing renewals. Which ones apply to you depends on your entity type and how you operate.
Advisory guide — always verify with the linked official sources. Last reviewed 2026-06-13.
25 California requirements to know
These come from California state agencies. Not all apply to every business — each is labeled with who it applies to. Still figures out which are yours.
Statement of Information (LLC)
Applies to: California LLCs
Filed with the CA SOS. LLCs file Form LLC-12 every 2 years (biennial). SI-550 is the annual CORPORATION form, not for LLCs.
Agent for Service of Process
Applies to: California LLCs (and corps/LPs/LLPs)
Statutorily required (Corp Code 17701.13(a)): designate and continuously maintain an agent to receive legal documents.
Professional entity (not a standard LLC)
Applies to: CA licensed professionals (e.g. therapists)
In California a licensed professional generally cannot use a standard LLC (Corp Code 17701.04(e)). Use a sole proprietorship, a professional corporation, or a partnership.
Applies to licensed professions (e.g. LMFT, attorney). Confirm your specific professions rule.
Articles of Organization (LLC)
Applies to: California LLCs
Forms your LLC with the CA Secretary of State via bizfileOnline; $70 base filing fee.
Operating Agreement
Applies to: California LLCs (single- or multi-member)
CA LLCs are statutorily deemed to have an operating agreement (Corp. Code §17701.10) — it may be oral, written, or implied and is not filed with the state, but a written one is required by most banks and lenders.
Not optional in CA: every LLC is deemed to have one. Keep a written copy for banking/lending.
Fictitious Business Name (DBA)
Applies to: Businesses operating under a name different from the legal entity / owner name
Filed with the county clerk where the business is located; CA also requires newspaper publication. Rules and forms vary by county.
County-administered; requirement + publication rules vary by county. CA FBN statements expire after 5 years.
Articles of Incorporation (ARTS-GS)
Applies to: California corporations
Forms your corporation with the CA Secretary of State. (An S-corp is a corporation with a federal tax election — it still files Articles of Incorporation.)
Draft — confirm the correct form for your corporation type with the CA SOS.
Statement of Information — corporation (SI-550)
Applies to: California corporations
CA corporations file a Statement of Information annually (LLCs file biennially on LLC-12).
Draft — confirm annual cadence/fee with the CA SOS.
Certificate of Limited Partnership — Form LP-1 (CA)
Applies to: California limited partnerships
To form a California limited partnership you must file a Certificate of Limited Partnership (Form LP-1) with the California Secretary of State.
Confirm the current filing fee and form with the CA SOS.
LLP registration — Form LLP-1 (CA)
Applies to: California professional LLPs
California allows LLPs only for certain licensed professions (law, accountancy, architecture, engineering, land surveying). If eligible, register by filing Form LLP-1 with the California Secretary of State.
CA LLP status is limited to specific licensed professions; confirm eligibility and the current fee with the CA SOS.
Fictitious Business Name — general partnership (CA)
Applies to: California general partnerships using a trade name
A California general partnership has no entity-formation filing with the state — it forms automatically when two or more people carry on a business as co-owners for profit (Corp. Code §16202). If you do business under a name that does not include the surname of every partner, or a name that suggests other owners (e.g., "& Company," "& Associates"), you must file a Fictitious Business Name statement with the clerk of the county where your principal place of business is located, within 40 days of starting business (Bus. & Prof. Code §§17900, 17910). A written partnership agreement is strongly recommended.
FBN filing is triggered only by using a name other than the partners' surnames, and statements generally expire after 5 years. Confirm county procedures.
California Sellers Permit
Applies to: Sellers of tangible goods in CA
Required to sell tangible goods in CA; free permit from CDTFA, with recurring sales-tax returns on your assigned frequency.
California Resale Certificate
Applies to: Buyers reselling goods
Lets you buy inventory tax-free for resale; no expiration - retain accepted certificates as documentation.
LMFT license (Board of Behavioral Sciences)
Applies to: Licensed marriage & family therapists in CA
Your license to practice. Renews every 2 years with 36 CE hours, including 6 hours of Law & Ethics each period.
For licensed marriage & family therapists.
Local business license
Applies to: Businesses operating in a California city
Most CA cities require a local business license / business tax certificate to operate; city-issued (e.g. LA Office of Finance), typically renewed annually.
Exact requirement + issuing office vary by city/county - look up yours via CalGold.
Cottage Food Operation permit (Class A / Class B)
Applies to: Home-kitchen makers of approved non-potentially-hazardous (non-TCS) foods in CA
CA Homemade Food Act (AB 1616, 2012; caps raised by AB 1144, 2021). Class A = registration, direct sales only, $75k annual cap; Class B = permit, direct + indirect, $150k annual cap; administered by county environmental health.
Selling prepared/hot meals from a home kitchen is a separate path: MEHKO (AB 626) where the county has opted in. Caps are inflation-adjusted.
Food Handler Card
Applies to: Individuals who handle food for a CA food business
ANSI-accredited food handler training; the CA card is valid exactly 3 years (HSC §113948).
Food handler requirement and validity period vary by state; CA is a fixed 3-year card.
Processed Food Registration (PFR)
Applies to: Commercial CA food manufacturers/processors (incl. coffee roasters); cottage operations exempt
CA CDPH Food & Drug Branch; annual; required to commercially process/package food in CA.
Separate Cannery License applies for low-acid / acidified canned goods.
Temporary Food Facility permit (events)
Applies to: CA food sellers at markets, fairs, pop-ups
Selling food at temporary events in California generally requires a Temporary Food Facility (TFF) permit from the county environmental health department where the event is held — separate from your regular permits.
Draft — permits are issued per event by the host county; confirm with the county environmental health office.
CA payroll tax registration (EDD)
Applies to: CA employers
Register with the CA EDD and file/pay UI, ETT, SDI and PIT withholding (DE 9 / DE 9C).
Draft — confirm registration thresholds with the CA EDD.
Workers' compensation insurance (CA)
Applies to: CA employers
California requires workers' compensation insurance for any employee.
Draft — coverage is mandatory for employees; confirm with the CA DIR/your carrier.
CA franchise tax — LLC ($800 minimum)
Applies to: California LLCs
If you have a California LLC, you generally owe the $800 minimum annual franchise tax (Form 568). LLCs formed on or after Jan 1, 2024 owe it from their first year. If your California receipts exceed $250k, an additional LLC fee applies.
Confirm the current $800 minimum, the post-2024 first-year treatment, and the gross-receipts fee tiers with the CA FTB or a CPA.
CA franchise tax — corporation ($800 minimum)
Applies to: California corporations
If you have a California corporation, you generally owe the $800 minimum annual franchise tax (Form 100, or 100S for an S-corp) — but newly formed corporations are exempt in their FIRST tax year. S-corps pay the greater of $800 or 1.5% of net income.
Confirm the first-year exemption and the S-corp 1.5% rate with the CA FTB or a CPA.
CA franchise tax — LP / LLP ($800 minimum)
Applies to: California LPs and LLPs
If your California partnership is an LP or LLP, you generally owe the $800 minimum annual franchise tax. General partnerships do not pay it.
Applies to LPs/LLPs only (not general partnerships); CA LLP status itself is limited to certain licensed professions. Confirm the $800 minimum with the CA FTB or a CPA.
Professional liability (E&O) insurance
Applies to: CA licensed professionals (e.g. therapists)
Covers malpractice / errors & omissions claims. Standard for licensed practices; some payers (e.g. Medi-Cal) and employers require it contractually.
Recommended, NOT legally required by the BBS. Payers/employers may require coverage.
Not sure which of these apply to you?
That's the hard part — and it's exactly what Still does. Answer a few questions about your business and Still builds your personalized list: what applies, what's due, and what to verify — then tracks it for you.
Build my compliance listFederal requirements that may also apply
- Copyright registration — Creators of original works
- FDA Food Facility Registration — Facilities that manufacture/process/pack/hold food (incl. coffee roasters); no small-business size exemption
- FDA Prior Notice (imported food) — Anyone importing food (e.g. green coffee beans)
- EIN confirmation letter (CP575) — Any business with employees or a separate entity
- W-9 on file (your business) — Businesses paid by clients/payers
- Federal trademark registration — Brands protecting a name/logo nationally
- HIPAA Notice of Privacy Practices — Practices handling patient health information that bill/transmit electronically (HIPAA covered entities)
- Children's Product Certificate (CPC) — Makers/importers of products designed primarily for children 12 and under
- FTC endorsement & #ad disclosure — Brands working with influencers/creators
- CAN-SPAM email compliance — Businesses sending marketing email
- Importer of record / customs & duties — Businesses importing goods from overseas
- Professional licensing, CE & insurance — Licensed professionals
- Business insurance (liability, product, E&O) — All businesses
- Cosmetic labeling (FDA / FPLA) — Cosmetic / personal-care brands
- Dietary supplement cGMP (21 CFR 111) — Dietary supplement brands
- Supplement Facts labeling + DSHEA claims — Dietary supplement brands
- Attorney licensing & trust accounting — Practicing attorneys
- Therapist licensing & ethics — Licensed therapists / counselors
- CPA license & CPE — Licensed accountants / CPAs
- Healthcare provider licensing — Licensed healthcare providers
- S-corporation election (Form 2553) — Businesses electing S-corp tax treatment
- S-corporation income tax return (Form 1120-S) — S-corporations
- C-corporation income tax return (Form 1120) — C-corporations
- Partnership return (Form 1065) — Partnerships
- Written partnership agreement — Multi-owner partnerships
- Quarterly payroll tax return (Form 941) — Employers with W-2 employees
- Federal unemployment tax (Form 940 / FUTA) — Employers with W-2 employees
- Annual wage statements (W-2 / W-3) — Employers with W-2 employees
- Employment eligibility verification (Form I-9) — Employers with W-2 employees
- New-hire reporting — Employers with W-2 employees
- Contractor 1099-NEC + W-9 collection — Businesses paying independent contractors
- Cause-marketing / commercial co-venturer — Brands advertising that sales benefit a charity
- Multi-state sales-tax nexus — Online sellers shipping to multiple states
- Cosmetic safety substantiation & adverse-event reporting — Cosmetic / personal-care brands
- FDA cosmetics facility registration & product listing (MoCRA) — Cosmetic / personal-care brands
- Investment adviser registration (Form ADV) — Advisers giving securities advice for compensation