Palmdale, CA asked in Business Formation and Business Law for California

Q: I am in Lancaster, CA. I want to start my own business

I will be doing my business out of my home, online. I will not have any inventory, I will not be selling any products, I will have no clients at my house and I will be the only employee. I will offer a service and will charge a finders fee if the client agrees and completes all paperwork. I will operate my business as a SOLE PROPRIETOR and apply for a DBA. My question is.. What licenses or forms will I need to complete before I can officially begin work?

1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Starting your own business in Lancaster, CA, as a sole proprietor and offering a service online is an exciting venture. To begin, you will need to file for a "Doing Business As" (DBA) if you plan to operate under a name different from your own. This is essential for opening a business bank account and handling other formal business matters under your chosen business name.

In addition to the DBA, you should check with the City of Lancaster for any local business license requirements. Even though you're operating from home without direct customer interaction at your location, many municipalities require a home-based business license or permit. This ensures that your business activities are in line with local zoning regulations.

Furthermore, since you mentioned charging a finder's fee, it's wise to ensure that your business complies with any specific regulations related to your service industry at the state level. California may have particular requirements or permits for businesses operating in your sector, especially if your services fall under regulated categories. Lastly, consider consulting with a tax professional to understand the tax implications of your business activities, including sales tax collection and reporting obligations, if applicable. This preparation will help you start your business on solid legal and financial footing.

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