10 Steps to Starting a Business in California

Are you contemplating starting a business inknows that the flow of customers into their store is
California? This is a guide to setting up a business inthe lifeblood of their business. But not all business
the sunny paradise of California.California is a fantasticowners know where and how to advertise their
place to start a business, with several enormousservices. Here are a few ideas:OfflineSet up business
cities like Los Angeles, San Francisco and San Diego.in a high traffic areaBe sure your signage on the
The population and diversity of the state is enoughfront of your business makes you easy to see. It
to begin just about any business you could imagine,should be big enough to be easily read from the
and thrive.Here are a few things you should considerroad, and bright enough to stand out from those
when starting your California business:around it.Your signage should make it immediately
Where in the city is your market demographic?Theclear, to someone driving by with only a second to
cities of Los Angeles, San Francisco and San Diegoglance at it, exactly what your business does.Yellow
are enormous, with many different pockets ofpagesBillboardsBus benchesPoster boardsHand out
demographics. Even the smaller communities inflyersHost groups and clubs at your businessAttend
California like Sacramento, Stockton, Bakersfield andlocal business networking functionsLocal newspapers
Palm Springs are large communities by any otherlike the la times ( Angeles Citysearch ( Francisco
state standard. You may want to research in whatCitysearch ( Angeles Craigslist ( Francisco Craigslist (
location of the city your particular business would becan find a version of the above web sites for almost
best suited.any of the larger cities in California by putting the city
What does business space cost in your desiredname at the front of the url.PPC ads on Google ( or
location?Different parts of the city will have wildlyYahoo ( ads can be targeted to a very localized area.
varied monthly lease costs. For example, in LosYou can ensure that only people surfing the internet
Angeles, Melrose Avenue or Downtown LA will havein the Los Angeles area (for example) will see your
much higher rates than Culver City or Northads. They will appear only when they're actually
Hollywood would.looking for your product, or reading something similar
What kind of business entity should you form?Learnto what you offer.
how to set up a California Incorporation ( aboutStay current on your California Tax Laws.One thing
places to form a DBA, or "Doing Business As".that can ruin a new business quickly is falling behind
Get a Federal EIN numberYou can file for an EIN ason taxes. Make sure you don't make that mistake!
soon as you get your EIN from the IRS ( or you canMake a solid effort to understand what you need to
have your incorporator get it when you file yourknow about California taxes - talk to your accountant
incorporation.about it!
Get a business licenseGet a Los Angeles businessSet up a web siteCustomers expect to be able to
license ( in Google for the term "(city name) businessfind you on the Internet.Without a web site, you
license" and you will be presented with results fortake away a potentially lucrative advertising avenue
your particular city.(see the Internet advertising tips above).Many places
Set up a bank accountYou need your EIN andlike Yahoo ( make it easy to setup your own
Incorporation (or DBA) paperwork before you canwebsite, with your own domain name.Find a domain
open a bank account and deposit checks made out inname. I always use GoDaddy ( to register my domain
your company's name. Once you have thisnames. I've found that DomainsBot ( is a great tool
paperwork, it's a fairly easy process. You just walkto find a cool domain name. Once you find it with
into your local branch, and they should help you getDomainsBot, you can register it with GoDaddy.
set up. The only bank I don't recommend isThey say that 9 out of 10 businesses fail within the
Washington Mutual, who wanted original copies offirst 5 years. Most businesses are not financially or
paperwork that the state of California had kept. Ilegally ready to succeed. If you follow the simple
had the certified copies from the state of California,steps in this article, you'll be better prepared to run a
but Wamu would only accept the originals. I've hadlong-term and profitable business. Los Angeles is
better luck with California National Bank, they haveready for you - you need to be ready to handle Los
very good customer service.Angeles!Oh yeah, and have fun!Travis Giggy is a
Find an accountantLack of bookkeeping is one ofbusiness specialist and one of the Founders of A
the top reasons new businesses fail. As the owner ofwebsite dedicated to reviewing and listing the best
the business, you'll be very business running yourservices that provide online legal services like
operations, and the books will fall behind. Be sure toincorporation, forming an LLC, getting your last will
set up your books, and hire a good accountant atand testament, or getting a divorce. See our special
the outset so that this doesn't become a problem.California Incorporation portal here.
Find advertising spaceAny good business owner