California small business guides
Statewide guidance for California business owners: registering your name, collecting what you're owed, responding to lawsuits, negotiating leases and hiring correctly.
Topics in business
Start a business
Register your business name, pick a structure and meet the filing deadlines.
- How to file a DBA
- DBA vs LLC
- DBA deadline calculator
Get paid
Unpaid invoices, demand letters and small claims court.
- Demand letter for an unpaid invoice
- Small claims for businesses
Got sued
What to do when your business is served, and the deadlines that matter.
- Look up a court case
- Served with a lawsuit
Property and leases
Commercial lease clauses, small-tenant rights and CASp disclosures in California.
- Commercial lease clauses
Hiring and compliance
Employee or contractor? The ABC test, exemptions and misclassification penalties for California employers.
- Employee vs contractor (ABC test)
How California business rules work
Most rules that affect a small business come from three places: state law (the Business and Professions Code, the Labor Code, the Code of Civil Procedure), state agencies such as the Secretary of State, Franchise Tax Board and EDD, and your county. Counties set their own fees for local filings such as fictitious business name statements, and each county has its own superior court (part of the state court system) that handles local cases.
Our business guides explain the rules that apply everywhere in California. For example, you must file a fictitious business name (DBA) statement within 40 days of using a name, an LLC owes at least $800 a year in California tax, and the small claims limit is $12,500 for individuals and $6,250 for businesses. Because fees and local steps differ by county, check with your county clerk or superior court before you file.
Where to start
- Opening a business? Begin with DBA vs LLC, then how to file a DBA.
- A customer won't pay? Send a demand letter, then consider small claims.
- Your business was served? Read the first 30 days. The response deadline is short.
- Signing a lease? Review the clauses to negotiate before you sign.
- Hiring help? Check the ABC test before treating anyone as a contractor.
These guides are general information, not legal advice. For advice on your situation, contact a State Bar–certified lawyer referral service.
Frequently asked questions
Do I need a DBA to start a business in California?
You need one if you do business under any name other than your own legal name, or if your LLC or corporation trades under a name other than its exact registered name. It must be filed with your county clerk within 40 days of starting to use the name. See how to file a DBA.
How much does it cost to start an LLC in California?
Forming an LLC costs $70 for the Articles of Organization plus $20 for the Statement of Information. Every LLC also owes at least $800 a year in California tax, including the first year. See DBA vs LLC for the full comparison.
What is the small claims limit for a business in California?
Corporations, LLCs and other entities can claim up to $6,250. Individuals, including sole proprietors, can claim up to $12,500. See small claims for businesses.
How long does a business have to respond to a lawsuit in California?
In most civil cases, the business has 30 calendar days after it is served to file a written response. Outside small claims, an LLC or corporation generally needs a lawyer to file it. See what to do in the first 30 days.
Are these guides official government information?
No. Golden State Explained is an independent website and isn't affiliated with any government agency or court. Our guides explain the rules and link to the official sources, such as statutes, court forms and agency pages, so you can confirm the details before you act.