Business Quick Start Guide Business Consultants

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BUSINESS

CONSULTANTS

BUSINESS QUICK START GUIDE

Free One-on-One Consulting is Available

Small business technical assistance centers are available throughout the State

of California to provide you with direct one on one support

at no cost to you.

To find your nearest center, visit business.ca.gov/centers

BUSINESS QUICK START GUIDE

FOR BUSINESS CONSULTANTS

A business consultant refers to a person who provides advice to businesses, often focused on a

specific area of expertise. Business consultants frequently operate as sole proprietors but may

also work in partnerships or form companies. Below is a list of local, state, and federal

requirements that may apply to these business types.

AT THE STATE AND FEDERAL LEVEL:

California S

ecretary of State (SOS) Filing – Not necessary for sole proprietors, but if you

intend to form a corporation, limited liability company, or partnership; you must file with

the SOS.

o SOS F

orms: http://www.sos.ca.gov/business/be/forms.htm

Income T

axes – All businesses are required to file State income tax with the Franchise Tax

Board (FTB) and Federal taxes with the Internal Revenue Service (IRS):

o FTB:

https://www.ftb.ca.gov/businesses/index.shtml?WT.mc_id=Global_Businesses_Tab

o IRS: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Business-Taxes

Sales &

Use Tax – If you will be selling tangible property, consult the California Department of

Tax and

Fee Administration (CDTFA) for a Seller’s Permit. You may also qualify for a Resale

Certificate. Note: These activities were formerly administered by the Board of Equalization (BOE).

o Seller’s P

ermit info: http://www.cdtfa.ca.gov/services/permits-licenses.htm

o Resale Ce

rtificate info: https://www.boe.ca.gov/sutax/faqresale.htm

For E

mployers – If your business will have employees, be advised of the following:

o Wages, Hours, & Working Conditions – Businesses with employees must comply with laws

establishing minimum standards for wages, hours, and working conditions. Consult the

California Department of Industrial Relations website at

http://www.dir.ca.gov/dlse/dlse.html.

o Worker’s Compensation – Businesses with employees must maintain Worker’s

Compensation Insurance coverage. Consult the California Department of Industrial

Relations website at http://www.dir.ca.gov/dwc/employer.htm.

To ﬁnd a center near you for free consulting, visit centers.calosba.ca.gov

BUSINESS QUICK START GUIDE

FOR BUSINESS CONSULTANTS

o Employment Development Department (EDD) Registration – An employer is

required to file a Registration Form within 15 days after paying more than $100 in

wages to one or more employees. Please consult the California EDD website at

http://www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employ

er.htm#business_sub je

ct.

● Federal E

mployer Identification Number (EIN) – Employers with employees, business

partnerships, and corporations, must obtain a Federal EIN from the IRS. Businesses can

obtain appropriate federal income tax forms from this location. Please consult the IRS

website at

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employ

er-Identification-Number-(EIN)-Online

AT TH

E LOCAL LEVEL:

● Business L

icense – Most local governments require a business license (or business tax

registration). If your business will be located in an incorporated city, contact the city. If

your business will be located in an unincorporated area, contact the county.

● Zoning –

Whether you will be a home-based business or will occupy commercial space,

consult your local planning department to be sure your business activities are permitted. If

your business will be located in an incorporated city, contact the city. If your business will

be located in an unincorporated area, contact the county.

● Fictitious B

usiness Name – A Fictitious Business Name or Doing Business As (DBA) statement is

required when: the business name does not include the surname of the individual owner(s)

and each of the partners; the business name suggests the existence of additional owners; or

the nature of the business in not clearly evident by the name of the business. This is always

obtained from the county in which a business is located.

● Small B

usiness Development Center – You can also check in with your local Small Business

Development Center (SBDC) as well. The SBDCs provide assistance to small businesses starting

or growing and offer free advice and consulting. To find an SBDC closest to you, click this link

and enter your zip code:

http://americassbdc.org/home/find-your-sbdc/, the

y may be better

equipped to advise you on local requirements.

ONLINE PE

RMIT ASSISTANCE TOOL:

You c

an use our online permit assistance tool, CalGOLD (www.calgold.ca.gov) to identify local, state,

and federal permit information for businesses. The online tool provides webpage links, application

To ﬁnd a center near you for free consulting, visit centers.calosba.ca.gov

BUSINESS QUICK START GUIDE

FOR BUSINESS CONSULTANTS

forms, and contact information for the various agencies that administer and issue these permits. For

permits and registrations administered by the State of California, CalGOLD also includes a Forms and

Fee Finder with direct links to applications and fee information. Once at the website, input your city and

type of business. If your business is not listed, you can select "General Business Information” for a list of

general requirements.

CONSIDERATIONS:

This Q

uick Start Guide is only one source of information among the many sources that are available to

you. You may wish to consider multiple sources in order to make an informed decision. You are solely

responsible for making a decision about how to form and create your business. You are responsible for

determining whether the information you obtain through your use of this Guide is suitable for your

purposes.

Although w

e go to great lengths to make sure our information is accurate and useful, we

recommend you consult a lawyer if you want legal advice or any other individual or service

provider for specific guidance. We offer this for informational purposes only.

PROP 6

Proposition 6

5, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986, requires

businesses to provide a clear and reasonable warning before knowingly and intentionally exposing

anyone to chemicals that are known to state to cause cancer or birth defects or other reproductive harm.

It is important to know that a product that receives certification from the United States Food and Drug

Administration, or another federal agency or state agency, is not necessarily exempt from California

requirements for chemical exposure warnings. Businesses should be aware of the levels of harmful

chemicals in their products and of applicable Proposition 65 requirements. For more information on

Proposition 65 and how to comply with its requirements, please visit

https://oehha.ca.gov/proposition-65

To ﬁnd a center near you for free consulting, visit centers.calosba.ca.gov