How do I register my business in Los Angeles County?
There’s no single place you go to “register” a business in LA County. California, the county, and your specific city each have their own requirements. Here’s what you need to work through.
Start by choosing your business structure. If you’re forming an LLC or corporation, file with the California Secretary of State. The filing fee is $70 for an LLC and $100 for a corporation. Sole proprietorships skip this step but still need everything else below. Your entity choice has real tax implications, so it’s worth thinking through before you file anything. A tax strategy conversation early on can save you thousands down the road compared to just picking whatever your buddy set up.
Next, get an EIN from the IRS. It’s free and takes about five minutes on irs.gov. You’ll need it to open a business bank account, file tax returns, and hire employees.
If you’re operating under a name different from your legal name or LLC name, file a Fictitious Business Name (DBA) statement with the LA County Registrar-Recorder. The fee is around $26 plus $7 for each additional name. You’ll also need to publish the filing in an approved newspaper, which runs another $30 to $50.
Then get a business license from your city. This is where it gets confusing. LA County doesn’t issue one county-wide license. You register with the city where you operate. Long Beach, Torrance, Carson, and the City of LA each have their own licensing offices and fees. If you work across multiple cities, check whether each one requires a separate license. Many do.
Register with the California Franchise Tax Board as well. LLCs owe a minimum $800 annual franchise tax. If you’re hiring employees, register with the Employment Development Department for state payroll taxes, disability insurance, and unemployment insurance.
For contractors and tradespeople specifically, you’ll likely need a license from the Contractors State License Board for any project over $500. Some trades need additional city permits depending on the work. Don’t skip this step because unlicensed contracting carries serious penalties in California.
Once the paperwork is filed, the most important thing is keeping your books right from day one. Mixing personal and business transactions or skipping bookkeeping for the first year creates a mess that’s expensive to untangle later. If you’re a trade or service business in the LA area, working with a CPA who specializes in construction and trades makes the whole process smoother because the financial setup gets done correctly from the start rather than patched together after the fact.
Long Beach's CPA for Contractors and Trades
The Next Step:
A Quick Conversation
Tell us about your business and where you need help. We'll ask a few questions, let you know what we can do, and give you a quick quote.
More Questions
Can I use QuickBooks to track subcontractor payments?
Yes. QuickBooks Online handles subcontractor tracking well if you set up each sub as a 1099-eligible vendor, code payments to the right jobs, and collect W-9s before you pay anyone.
Read answerCan I write off materials I buy for a job?
Yes. Materials purchased for a job reduce your taxable income whether they're classified as cost of goods sold or job expenses. The key is tracking them properly so nothing gets missed at tax time.
Read answerCan I deduct continuing education and trade certifications?
Yes, if the education maintains or improves skills in your current trade, it's a deductible business expense. License renewals, code update courses, OSHA certifications, and manufacturer training all qualify. Education that qualifies you for a completely new profession does not.
Read answerWhat's the difference between a W-2 employee and a 1099 contractor?
A W-2 employee works under your direction and you handle their payroll taxes. A 1099 contractor runs their own business and handles their own taxes. The distinction matters because misclassifying workers can result in serious penalties, especially in California.
Read answerWhat should a bookkeeper do for a contractor?
A bookkeeper for a contractor should handle much more than basic data entry. They need to track job costs, manage subcontractor payments, categorize expenses for maximum deductions, and deliver reports that show profitability by project.
Read answerCan a bookkeeper do my taxes or do I need a CPA?
A bookkeeper can legally prepare tax returns in California if they're registered, but they can't represent you before the IRS or provide strategic tax advice. For trade businesses, working with someone who handles both bookkeeping and taxes produces the best results.
Read answer