Legal Question in Business Law in California

Re: Business license required in CA to perform consulting work?

There are two kinds of licenses a sole proprietor might need: A business license and a professional license. Computer consulting, unlike law, architecture, nursing, etc. probably doesn't require a professional license, although there are certainly certification programs offered by major software and hardware producers.

You'll need a business license issued by your city, or if outside an incorporated area, by your county. They're simple and cheap to get, usually at city hall or the court house, but check the phone book first.

I also strongly recommend keeping financial records in a format and completeness suitable for preparing business tax returns, such as 1040 Sechedule C. The IRS has free booklets for new businesses covering record-keeping.

Also, when you pick up your business license, look around to see if there are information racks at the license window where you can pick up checklists for new businesses and other useful information.

Re: Business license required in CA to perform consulting work?

Good information provided by Mr. Whipple. Let me just add that every city has different rules about business licenses and business taxes. Some cities do not require any license at all, but you should be able to find out by visiting City Hall in your own municipality.

Also, if you are doing business under a name different than your own personal legal name, you will have to file a fictitious business name statement with your county.