10 Steps to Starting a Business in California

Are you contemplating starting a business in California?18. - Any good business owner knows that the flow of
This is a guide to setting up a business in the sunnycustomers into their store is the lifeblood of their
paradise of California.business. But not all business owners know where and
California is a fantastic place to start a business, withhow to advertise their services. Here are a few ideas:
several enormous cities like Los Angeles, San19. - Offline
Francisco and San Diego.20. - Set up business in a high traffic area
The population and diversity of the state is enough to21. - Be sure your signage on the front of your
begin just about any business you could imagine, andbusiness makes you easy to see. It should be big
thrive.enough to be easily read from the road, and bright
Here are a few things you should consider whenenough to stand out from those around it.
starting your California business:22. - Your signage should make it immediately clear, to
someone driving by with only a second to glance at it,
1. Where in the city is your market demographic?exactly what your business does.
2. - The cities of Los Angeles, San Francisco and San23. Yellow pages
Diego are enormous, with many different pockets of24. Billboards
demographics. Even the smaller communities in25. Bus benches
California like Sacramento, Stockton, Bakersfield and26. Poster boards
Palm Springs are large communities by any other state27. Hand out flyers
standard. You may want to research in what location28. Host groups and clubs at your business
of the city your particular business would be best29. Attend local business networking functions
suited.30. Local newspapers like the la times (
3. What does business space cost in your desired31. Internet
location?32. - Los Angeles Citysearch (
4. - Different parts of the city will have wildly varied33. - San Francisco Citysearch (
monthly lease costs. For example, in Los Angeles,34. - Los Angeles Craigslist (
Melrose Avenue or Downtown LA will have much35. - San Francisco Craigslist (
higher rates than Culver City or North Hollywood36. - You can find a version of the above web sites
would.for almost any of the larger cities in California by
5. What kind of business entity should you form?putting the city name at the front of the url.
6. - Learn how to set up a California Incorporation ([37. - PPC ads on Google ( or Yahoo (
7. - Read about places to form a DBA, or "Doing38. - Pay-per-click ads can be targeted to a very
Business As".localized area. You can ensure that only people surfing
8. Get a Federal EIN numberthe internet in the Los Angeles area (for example) will
9. - You can file for an EIN as soon as you get yoursee your ads. They will appear only when they're
EIN from the IRS ([ or you can have your incorporatoractually looking for your product, or reading something
get it when you file your incorporation.similar to what you offer.
10. Get a business license39. Stay current on your California Tax Laws.
11. - Get a Los Angeles business license (40. - One thing that can ruin a new business quickly is
12. - Search in Google for the term "(city name)falling behind on taxes. Make sure you don't make that
business license" and you will be presented with resultsmistake! Make a solid effort to understand what you
for your particular city.need to know about California taxes - talk to your
13. Set up a bank accountaccountant about it!
14. - You need your EIN and Incorporation (or DBA)41. Set up a web site
paperwork before you can open a bank account and42. - Customers expect to be able to find you on the
deposit checks made out in your company's name.Internet.
Once you have this paperwork, it's a fairly easy43. - Without a web site, you take away a potentially
process. You just walk into your local branch, and theylucrative advertising avenue (see the Internet
should help you get set up. The only bank I don'tadvertising tips above).
recommend is Washington Mutual, who wanted original44. - Many places like Yahoo ( make it easy to setup
copies of paperwork that the state of California hadyour own website, with your own domain name.
kept. I had the certified copies from the state of45. - Find a domain name. I always use GoDaddy ( to
California, but Wamu would only accept the originals.register my domain names. I've found that DomainsBot
I've had better luck with California National Bank, they( is a great tool to find a cool domain name. Once you
have very good customer service.find it with DomainsBot, you can register it with
15. Find an accountantGoDaddy.
16. - Lack of bookkeeping is one of the top reasonsThey say that 9 out of 10 businesses fail within the
new businesses fail. As the owner of the business,first 5 years. Most businesses are not financially or
you'll be very business running your operations, and thelegally ready to succeed. If you follow the simple steps
books will fall behind. Be sure to set up your books,in this article, you'll be better prepared to run a
and hire a good accountant at the outset so that thislong-term and profitable business. Los Angeles is ready
doesn't become a problem.for you - you need to be ready to handle Los Angeles!
17. Find advertising spaceOh yeah, and have fun!