August 8, 2022

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Perhaps most of us have had the idea of starting a business. Where we can...

Perhaps most of us have had the idea of starting a business. Where we can do what we enjoy, have the freedom to do what we want, achieve satisfaction or stability in life, and become more flexible when gaining experience through facing challenges and puzzles in our job. Business-minded individuals are all dedicated to doing anything in order to achieve success or stability in their lives. They have the dream of being able to step up to this stage of their lives where they would have fewer financial concerns and more enjoyment in life by having a stable and sufficient source of income. Therefore, it is no doubt that planning to start a business is indeed a great idea as it could help us achieve personal fulfilment.

If you are in California, and you have the idea to start a business, yet you are still in the process of figuring out how to begin – it is totally alright. Being an entrepreneur is not easy. You may always have to start from scratch and begin a small process until it develops bigger progress. There are simple tips that says could help you start the process of building your business from scratch.

1. Finalize your chosen Business Idea

Once we have the idea of starting a business, we may already have an idea of what kind of business we want to build. However, if you have not chosen a business idea yet, you can take your time to explore and review some business ideas that you may want to consider. You can start with your interests, skills or capabilities, sources, accessibility, and the main reason that inspires you to start a business. It is also important to evaluate the feasibility of your business’s success by finding out if it will meet the needs and interests of the people in your community.

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Moreover, once your business idea is finalized, you may proceed with drafting a business plan which can help you in the process of coming up with a better idea of your startup costs, your possible rivals, and strategies that could help the flow of your business. A good business plan can attract investors and lenders that could provide more funds for the business.

2. Decide a Business Structure

The most common business structures you can consider are sole proprietorship, partnership, limited liability company (LLC), and corporation. It is important for you to choose which business structure you may want to consider that offers the liability protection you need for your business and tax and financial benefits for you and for your business.

Here’s a quick video guide on how to start an LLC in California:

3. Choose a Business Name

What will your business name be? Thinking of a business name may be a piece of cake, especially if you already have one in mind, but there is a whole process of business name registration. When selecting your business name, make sure you follow California’s naming guidelines, make sure it is connected with your chosen business structure, check if it does not have similarities to other business names, and that it is good enough to resonate with your potential customers. Once you have selected your business name and your domain is available, you can reserve it for 60 days by filing a Name Reservation Request Form.

4. Register your Business Entity

Sole Proprietorship

When forming a sole proprietorship in California, it shall be noted that filing any organization documents with the state is not that necessary.

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Creating a general partnership in California does not also need filing any organization with the state. However, as a form of formality, all partnerships should have a written document of their partnership agreement in case of any dispute between the partners.


When establishing an LLC in California, it is important to file Articles of Organization with the California Secretary of State (SOS). You may also need to hire an individual or corporate agent who will help you with the processes in California. Furthermore, although it isn’t required by the law, you should consider arranging an operating agreement that will tell about the basic rules of the operation of your LLC. Also, getting an LLC is quite simply now, when you can hire a professional company to do all the hard work for you.


The process of your corporation business registration is similar to the process of creating an LLC in Australia. However, instead of the operating agreement, you should prepare bylaws that establish your corporation’s internal operating rules, it is also not required by the law, and both bylaws and operating agreements are not filed with the state.

5. Pick a Business Location

Have you picked a location for your business? There are a few things that you have to consider when picking a location for your business: (1) Check California’s zoning regulations; (2) Refer your location according to your customers’ needs; (3) calculate how much it will cost when running your business to your chosen spot; and (4) Reevaluate your business plan if you can afford your chosen location when you are still starting.

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6. Get Insurance

Obtaining business insurance can help you protect your business and assets from unexpected disasters that may affect your business.

7. Get a Business Bank Account

Opening a separate bank account for your business can help you easily distinguish your personal and business income and expenses.

8. Get Business Permits and License

When you are planning to operate a business, it is a must for you to comply with the legal requirements. You must follow federal, state, and local government regulations. To do this, you are expected to apply for one or more business permits or licenses in order for you to operate your business legally. 

Therefore, to start a business in California, you will need to obtain permits or licenses depending on the type of your business you have. If you want to start the process of applying for your business permits and license, you may consider utilizing the following resources:

  • For the federal government, you can use the US Small Business Administration (SBA) guide.
  • As for the state government, you can apply for permits, licenses, and registration through the State of California’s CalGold website.
  • While for the local government, you can contact your local county clerk to discuss the process of obtaining business licenses and permits.

9. Preparing your Business’ Brand

This process may include defining your business brand and logo, which allows your customer to recognize your business. Moreover, once your business brand and logo are finalized, you can start getting an online appearance for your business by arranging a brand promotion on any social media platform.