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California business license: who issues it and what else you need

By Nation 11 min read

Quick answer

California has no general statewide business license: you get one from the city if your business is in an incorporated city, or from the county if your business is in an unincorporated area, and the state's small business office (CalOSBA) notes that most local governments require a business license. If you sell taxable goods, you also register with the California Department of Tax and Fee Administration (CDTFA) for a seller's permit, and the CDTFA charges no fee for it. Law checked on 3 Oct 2026 on the CalOSBA guide at calosba.ca.gov and the CDTFA site at cdtfa.ca.gov; cities and counties add their own rules, and this page is general information, not legal or tax advice.

Nation, an AI store builder, publishes this page. It is pre-launch, with a waitlist on withnation.ai, so it is not in the fee comparison. See where Nation fits.

Does California have a statewide business license?

No. California does not issue one general business license for the whole state. The California Office of the Small Business Advocate (CalOSBA) explains that most local governments require a business license, and the Governor's Office of Business and Economic Development (GO-Biz) says businesses obtain business licenses and other permits from appropriate cities or counties. The California Secretary of State does not issue licenses or permits for business entities.

The state runs separate registrations tied to what you sell and how you set up. The table lists each one, law checked on 3 Oct 2026.

What a California home maker may need, and who issues it
RegistrationIssued byWho needs itFee or limit
City or county business licenseYour city, or your county in an unincorporated areaBusinesses in cities and counties that require oneSet locally: each city has its own tax rate, structure, and requirements
Seller's permitCDTFAAnyone engaged in business in California who intends to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retailCost: no fee; the CDTFA may require a security deposit to cover any unpaid taxes owed if the business later closes
Temporary seller's permitCDTFAIssued to individuals with no permanent place of business; it covers a selling period of 90 days or less at one locationCost: free
Resale certificateYou fill it in for your supplier, for example CDTFA-230, General Resale CertificateSellers buying items to resell, or materials that will become a physical part of an item that will be held for resaleNo application: the CDTFA does not provide resale certificates
Cottage food registration or permitLocal agency: your local Environmental Health DepartmentHome kitchens making certain non-potentially hazardous foods from the approved listGross annual sales limit in 2026: $88,878 (Class A) or $177,756 (Class B)
License to Sell Nursery StockCalifornia Department of Food and Agriculture (CDFA)Required for any person who sells plants for planting, propagation, or ornamentation in California$150 minimum license fee, plus a sales location fee of $150 per sales location
Fictitious business name (DBA)Filed with the county in which the principal place of business is locatedAnyone trading under any business name other than the owner’s last name; file within the first 40 days of operating your businessFees determined by the county or city
LLC (optional)Secretary of State, then the Franchise Tax BoardOnly owners who choose to form an LLC$70 to file, plus $800 a year

Cities and counties can add their own rules, such as zoning or home occupation permits. This page is general information, not legal or tax advice.

How to get a business license in California

The order below fits most people who sell things they make from home.

  1. Find out whether you are in a city or an unincorporated area

    Your address decides which office licenses you: the city if it is inside city limits, the county if it is in an unincorporated area. If you are not sure, check the address with your county before you apply.

  2. Check the zoning for a home business

    CalOSBA's advice is to consult your local planning department to be sure your business activities are permitted. Example: for a license in unincorporated Contra Costa County, you need one of these documents: County Land Use Verification, Home Occupancy Form, or Short-Term Rental Form. The county adds that once zoning and planning approval is secured, you may complete the online Business License application.

  3. File your business name if you need one

    File a fictitious business name statement with the county if you trade under any business name other than the owner’s last name. The business name section below has the deadline and the publication rule.

  4. Apply for the city or county license

    Apply to the city's business license or business tax office, or to the county's office if you are in an unincorporated area. The fee and the documents you need are set there, because each city has its own tax rate, structure, and requirements.

  5. Register with the CDTFA if you sell taxable goods

    Register online for a seller's permit; online registration is free. The seller's permit section below covers who needs one and what it costs.

  6. Add any permit your product needs

    Food made at home needs a cottage food registration or permit from your local Environmental Health Department. Plants need a License to Sell Nursery Stock from the CDFA.

City or county: how to find your licensing office

To find the office for your address, use CalGold, the state's permit assistance tool at calgold.ca.gov. Pick your city or county and your business type, and it gives you contact information for the agencies that issue permits. CalGold does not issue permits or licenses, and it says its information may still be incomplete, so confirm the details with the office itself.

Contra Costa County shows how the two levels fit together. If you work only inside a city, you do not need to apply for a County business license. If your business is in a city and you also do business in the county's unincorporated area, you need a business license from both the city and the County.

The local license is often a tax. Contra Costa County's tax collector notes that most California cities and counties have a business license tax ordinance, and that each city has its own tax rate, structure, and requirements. Example: the City of Los Angeles Office of Finance requires all individuals or entities conducting business activities within the City of Los Angeles to hold a Business Tax Registration Certificate.

Example of a county fee: Contra Costa County's tax collector lists $100 plus $10 per employee a year for a business in its unincorporated area. Other cities and counties charge different amounts, so read the fee on the page of the office that licenses your address.

The CDTFA seller's permit for taxable goods

The CDTFA requires a seller's permit from anyone engaged in business in California who intends to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. The CDTFA's examples of such goods include furniture, giftware, toys, antiques, clothing, and so forth.

You generally need a permit once you make three or more sales of items subject to California sales and use tax in a 12-month period. The CDTFA charges no fee, but it may require a security deposit to cover any unpaid taxes owed if the business later closes.

The permit does not replace the local license. Asked whether a seller's permit is the same as a business license, the CDTFA answers no: you should contact your city and/or county business license department to obtain a separate business license.

If you sell only on an online marketplace, you are not required to be registered with CDTFA for a seller's permit when all of your retail sales of merchandise are facilitated by a marketplace facilitator registered as a retailer with the CDTFA. The condition covers all of your retail sales, so it no longer applies once you also sell through your own website or at a market stall.

Craft fairs and pop-ups follow the CDTFA's events rule: sellers at swap meets, flea markets and special events that make retail sales are required to obtain a seller's permit. A temporary seller's permit is issued to individuals with no permanent place of business and covers a selling period of 90 days or less at one location; it is free. If you already hold a seller's permit, you must register for a sub-permit for each of your temporary locations.

Buying materials without sales tax: the resale certificate

When you buy goods to resell, you can give your supplier a resale certificate instead of paying sales tax. The CDTFA says purchasers who are engaged in the business of selling tangible personal property may issue them. The general form is CDTFA-230, General Resale Certificate, and the CDTFA does not provide resale certificates, so you download and fill it in yourself. When a supplier accepts a valid certificate, the seller does not owe tax on that sale.

A certificate also covers materials that will become a physical part of an item that will be held for resale. Example: wax that becomes part of a candle you sell. Do not use it for products you will use rather than sell, or use for a personal purpose. Knowingly misusing one can bring a penalty of 10 percent of the tax or $500, whichever is greater, for each purchase.

Cottage food and nursery licenses for food and plants

Food made at home falls under California's cottage food rules. The California Department of Public Health (CDPH) does not permit or register cottage food operations; it maintains the approved foods list. You register or get a permit from your local Environmental Health Department, and a cottage food operation can prepare and package only certain non-potentially hazardous foods from the state's approved list, in a private home kitchen.

There are two classes. Class A operations sell home-kitchen prepared foods directly to the public, including by phone and internet, with gross annual sales up to $88,878 in 2026. Class B operations sell directly to the public or indirectly through restaurants and food markets, with sales up to $177,756 in 2026. Every operator completes a cottage food operator training within three months of registration/permitting.

Plant sellers need a License to Sell Nursery Stock from the CDFA, which is required for any person who sells plants for planting, propagation, or ornamentation in California. The minimum fee is $150, plus $150 per sales location. A fee-exempt license is issued by the county when total plant sales are less than $1,000 a year, all plants sold are the grower's own production, the plants are sold within the county in which they were grown, and the grower has reported to the agricultural commissioner the intention to make those sales.

Business name and LLC filings

You need a fictitious business name statement, often called a DBA, for any business name other than the owner’s last name. It is filed with the county in which the principal place of business is located, within the first 40 days of operating your business. You then publish the statement in a newspaper of general circulation within 30 days after filing, once a week for four successive weeks. The statement expires five years from the date it was filed in the office of the county clerk.

An LLC is optional for a small maker, and forming one does not replace the license: the Secretary of State says a new entity must obtain the necessary licenses and/or permits. Filing Articles of Organization costs $70, and the Franchise Tax Board charges an annual tax of $800, first due by the 15th day of the 4th month from the date you file with the Secretary of State.

Where Nation fits

Nation

Category: an AI store builder

Not ranked

Nation says one description of what you make builds the store, then agents handle orders, customers and delivery and run ads, content and social posts, with you approving the work. That list does not include business licenses or permits.

Limits today

  • Status: pre-launch, with a waitlist on withnation.ai.
  • Pricing and fees: not announced yet.
  • Shopper marketplace: no shopper marketplace has been announced.
  • Track record: no independent reviews or public stores yet.

Nation publishes this page. It is general information about California rules, not legal or tax advice.

Describe what you make

Questions about a California business license

Does California require a business license?

California does not require a single statewide business license. The license comes from your city, or from your county if your business is in an unincorporated area, and CalOSBA notes that most local governments require a business license. If you sell taxable goods, you generally also need a seller's permit from the CDTFA, which charges no fee for it.

How do I get a business license in California?

To get a business license in California, find out whether your address is inside a city or in unincorporated county land, check the zoning, then apply to that city's or county's license office. CalGold at calgold.ca.gov gives contact information for the agencies that issue permits. If you sell taxable goods, register separately with the CDTFA for a seller's permit.

Is a seller's permit the same as a business license in California?

A California seller's permit is not a business license. The CDTFA, which issues the seller's permit and charges no fee for it, says you should contact your city and/or county business license department to obtain a separate business license. A maker who sells taxable goods in a city or county that requires a license needs both.

Do I need a business license to sell online from home in California?

Whether you need a local business license to sell online from home in California depends on your city or county, so check with the office that covers your address. For the state, you need a CDTFA seller's permit for taxable goods, unless all of your retail sales of merchandise are facilitated by a marketplace facilitator registered as a retailer with the CDTFA.

How much does a California business license cost?

A California business license costs whatever your city or county charges, because there is no single state license or fee. Example: Contra Costa County lists $100 plus $10 per employee a year in its unincorporated area. For the separate seller's permit, the CDTFA charges no fee, although it may require a security deposit to cover any unpaid taxes owed if the business later closes.

Do I need a permit to sell at a craft fair in California?

Selling taxable goods at a California craft fair generally needs a CDTFA permit. With no permanent place of business, you get a temporary seller's permit, which covers a selling period of 90 days or less at one location and is free. If you already hold a seller's permit, you must register for a sub-permit for each of your temporary locations.

Describe what you make

Nation is an AI store builder. It is pre-launch, with a waitlist on withnation.ai: leave a description of what you make and your email to join the waitlist.