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 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
- FDA Food Facility Registration, Facilities that manufacture/process/pack/hold food (incl. coffee roasters); no small-business size exemption
- 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
- Business attorney, Every business benefits from a lawyer to call on
- CPA / tax advisor, Bookkeeping, tax filing, and planning
- Registered agent, Registered entities must name an agent for service of process
- General liability insurance, Baseline coverage for any business
- Product liability insurance, Businesses selling physical products
- Professional liability (E&O), Service businesses advising clients
- Children's product compliance consultant, Brands making products for children
- Food safety consultant, Food and beverage makers
- Manufacturer agreement, Brands that have products made for them
- Primary supplier agreement, Brands sourcing materials or inventory
- Overseas supplier agreement, Importers sourcing from overseas
- Service agreement template, Service businesses
- Client contract template, Service businesses with clients
- Cause partner agreement, Brands donating to a cause partner