California Business License: Who Needs One & How to Apply (2025)

What Is a Business License in California?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately.

So, if there isn’t a “general business license” in California, what exactly is there?

Well, California — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do.

For example:

• A restaurant in Los Angeles will likely need a Public Health Permit from the Los Angeles County Department of Public Health.
• A barbershop will likely need a professional license from the California Board of Barbering and Cosmetology.
• A retail store selling taxable goods will need a Seller’s Permit (commonly known as a sales tax permit) from the California Department of Tax and Fee Administration.
• A film production company in Sacramento will need a seller’s permit from the CDTFA and film permits from the California Film Commission for state property filming, plus local permits from the City of Sacramento.

Do I Need a California Business License?

The answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Jurisdiction	License Type	Who Needs It & Where to Apply
Local	Business Tax Registration Certificate, Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by city and county. Contact your local municipality to determine local requirements.
State	Seller’s Permit	Businesses selling tangible personal property or taxable services.  Apply via California Department of Tax and Fee Administration (CDTFA).
	Professional Licenses	Regulated occupations (contractors, cosmetologists, accountants, etc.).  Apply via the Department of Consumer Affairs (DCA).
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, liquor, cannabis, childcare).  Apply through the relevant California agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in California

The process of obtaining a business license in California will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line.

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information.

2. Apply for the Right Business License in California

This step will depend on the business license in question.

California Local Business Licenses

Many California cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Business Tax Certificate: Most California cities require businesses to obtain a business tax certificate (sometimes called a business license or business registration certificate) before operating. This is typically an annual requirement with fees based on business type, gross receipts, or number of employees (e.g., if your business is based in Long Beach, you would apply through the City of Long Beach Business License Division).
• Health Permits: Required for restaurants, food trucks, bars, and any business handling food products. These permits ensure compliance with health and safety regulations (e.g., if your business is based in Fresno, you would apply through the Fresno County Department of Public Health).
• Zoning Permits: You may need this in order to ensure that your business’s location is zoned appropriately and is compliant with local laws (e.g., if you were based in San Francisco, you would have a look at the San Francisco Planning Department’s page).
• Sign Permits: These can be required before installing business signage (e.g., if you were based in Los Angeles, you would have a look at the Los Angeles Department of Building and Safety’s page).
• Fire Department Permits: These can be necessary for businesses with public access. An example of a body you could contact depending on your location is the Los Angeles Fire Department.
• Certificate of Occupancy Permits: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in San Diego, you would check the City of San Diego Development Services website).

To find your local county or city’s official contact information and licensing requirements, you can visit the California State Association of Counties. For a comprehensive database of all local and state California business licenses, use the CalGOLD Permit Search provided by the Governor’s Office of Business and Economic Development.

California State Business Licenses

Below we’ve included the most common business licenses that are required on a state level.

California Seller’s Permit

If you’re interested in obtaining a Seller’s Permit (commonly known as a sales tax permit), you can do this online free of charge through the CDTFA.

Apply Online

Fee: None

The Seller’s Permit is required for businesses selling or leasing tangible personal property that would ordinarily be subject to sales tax if sold at retail. This includes wholesalers, manufacturers, and retailers.

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our California Sales Tax guide.

Tip: If you purchase items for resale, you can provide your seller’s permit number to suppliers to make tax-free purchases. You’ll need to complete a Resale Certificate (CDTFA-230) for your records.

California Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Department of Consumer Affairs (DCA): Oversees over 40 boards and bureaus that regulate professions including contractors, cosmetologists, barbers, acupuncturists, psychologists, and many healthcare professionals.
• California Department of Real Estate (DRE): Licenses and regulates real estate brokers, salespersons, and mortgage loan originators throughout California.
• State Bar of California: Regulates the legal profession, including licensing attorneys, paralegals, and legal document assistants.
• Medical Board of California: Licenses and regulates physicians, surgeons, and certain other healthcare practitioners.
• California Board of Registered Nursing: Licenses registered nurses, nurse practitioners, clinical nurse specialists, and other nursing professionals.
• California State Board of Pharmacy: Regulates pharmacists, pharmacy technicians, pharmacies, and wholesalers of dangerous drugs and devices.
• Contractors State License Board: Licenses and regulates the state’s construction industry, including general contractors and specialty contractors in 44 different classifications.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides.

Industry-Specific State Licenses

Some California businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in California:

• Alcoholic Beverage License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the California Department of Alcoholic Beverage Control (ABC). License types range from off-sale beer and wine to on-sale general licenses.
• Cannabis License: Required for commercial cannabis activities including cultivation, manufacturing, distribution, testing, and retail. Regulated by the Department of Cannabis Control (DCC). Separate licenses required for each activity type.
• Motor Vehicle Dealer License: Required for anyone selling more than 4 vehicles per year. Regulated by the California Department of Motor Vehicles (DMV). Includes new and used vehicle dealers, wholesale dealers, and motorcycle dealers.
• Child Care License: Required for facilities caring for children from more than one family. Regulated by the California Department of Social Services Community Care Licensing Division. Separate licenses for family child care homes and child care centers.
• Private Security Services License: Required for security guards, private investigators, alarm company operators, and private patrol operators. Regulated by the Bureau of Security and Investigative Services.
• Food Processor Registration: Required for facilities that manufacture, pack, or hold processed food for human consumption. Regulated by the California Department of Public Health.

Note: This is not a complete list. Licensing requirements vary by industry and business model. For more, consult the relevant state agency.

California Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the California Environmental Protection Agency (CalEPA) and its various boards and departments.

Examples of industries and activities requiring environmental permits include:

• Air Quality Permits: Required for facilities emitting air pollutants, including manufacturing plants, gas stations, dry cleaners, and auto body shops.
• Stormwater Discharge Permits: Required for construction sites over one acre and industrial facilities discharging stormwater.
• Hazardous Waste Generator ID: Required for businesses generating hazardous waste, including auto repair shops, medical facilities, and manufacturers.
• Underground Storage Tank Permit: Required for underground tanks storing over 1,100 gallons of petroleum or hazardous substances.
• Waste Discharge Requirements: Required for facilities discharging waste to land or water, including wineries and food processors.
• Cal e-Waste Registration: Required for businesses collecting or recycling electronic waste.
• CERS Business Plan: Required for storing hazardous materials above threshold quantities (55 gallons liquids, 500 pounds solids).
• CUPA Permits: Consolidates various hazardous material permits through your local Certified Unified Program Agency.

Federal Business Licenses for California LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate.

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

California Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years.

This is not required for a California Seller’s Permit unless you change the form of your business (e.g., start as a sole proprietorship and then convert into a corporation, etc.).

Renewal is also required for practically all professional licenses and many local permits, including:

• Business tax certificates (annually)
• Professional licenses like contractors, real estate agents, cosmetologists (typically every 2 years with continuing education requirements)
• Alcoholic beverage licenses ( annually)
• Health permits for food establishments (annually)
• Fire department permits (annually)
• Cannabis licenses ( annually)
• Motor vehicle dealer licenses ( annually)

Renewal requirements will ultimately depend on both your location and the specific license in question. As a result, we recommend always checking with your issuing agency for the specific renewal timelines and requirements that will apply to you.

California Business License FAQs

Quick Resources

• California Secretary of State
• California Department of Tax and Fee Administration
• California Department of Consumer Affairs
• CalGOLD Permit Search
• California Counties Directory