Business Licenses for California LLCs — City, County & State
California has extensive licensing requirements at state, county, and city levels. Unlike Texas (which has minimal licensing), California regulates many more business activities. For all compliance, see our post-formation guide.
State-Level Licenses
| Industry | Agency | Notes |
|---|---|---|
| General contractor | Contractors State License Board (CSLB) | Required for projects $500+ (unlike TX which has none) |
| Real estate broker/agent | Dept of Real Estate (DRE) | Mandatory for all RE transactions |
| Cosmetology/barber | Board of Barbering and Cosmetology | Individual + establishment licenses |
| Food service | CDPH + local health dept | California Retail Food Code compliance |
| Cannabis | Dept of Cannabis Control (DCC) | State + local licenses required |
| Alcohol | ABC (Alcohol Beverage Control) | Various license types |
| Insurance | CDI (CA Dept of Insurance) | Agent/broker licenses |
City Business Licenses/Tax
Most California cities require a business license or business tax certificate. This is different from many other states:
- Los Angeles: Business Tax Registration Certificate (annual, based on gross receipts)
- San Francisco: Business Registration Certificate ($45-$35,000+ based on payroll)
- San Jose: Business Tax Certificate (based on gross receipts)
- San Diego: Business Tax Certificate ($34-$200+)
- Sacramento: Business Operations Tax
CalGold: Use https://www.calgold.ca.gov/ to identify all permits and licenses needed for your specific business type and location.
Contractor Licensing (CSLB)
Ready to get started?
Get StartedCalifornia requires a state contractor license for all projects $500+. This is a major difference from Texas (no contractor license required).
- Apply through the Contractors State License Board
- Must pass trade and law exams
- Must show 4+ years of experience
- Must have contractor's bond ($25,000)
- Fee: approximately $450 total
FAQ
Does every California LLC need a city business license?
Most cities require one if you conduct business within city limits — even home-based businesses. Check your city's finance/tax department. Fees vary from $30 to thousands depending on the city and your revenue.
Can I operate without a contractor's license?
Only for projects under $500 in total labor and materials. Above $500: CSLB license is mandatory. Operating without one is a misdemeanor in California .