State and local licensing is required for a wide variety of businesses and professions that may be conducted in the corporate form. Information on state requirements can be obtained from the California License Handbook and the California Permit Handbook, which can be obtained from the Office of Small Business Development (1121 L Street, Suite 600, Sacramento, CA 95814) and the Department of General Services, Documents Publications Section (P.O. Box 1015, North Highlands, CA 95660), respectively. Licensing requirements imposed by cities, counties, and other local government entities vary widely. Some California cities require certain businesses to obtain a license and pay a tax for the privilege of doing business in that city. This tax is usually imposed on an annual basis. A new business must obtain its registration certificate and a minimum tax must be paid on or before the last day of the month following the date the business commences. You should promptly advise your accountant of the nature of the corporation’s business and of the locations in which it will be carrying on business so that the necessary licenses are obtained and the local taxes are paid.
If the corporation plans to transact business under a name other than that which is listed on its articles of incorporation, it is required to file a Fictitious Business Name Statement with the clerk of the county in which the corporation has its principal place of business. It is also prudent to file a statement in the other counties where the corporation will be transacting business. Once the statement is on file with the county clerk, it also must be published in a newspaper of general circulation, in the same county, once a week for four consecutive weeks. Within 30 days of completion of publication, an affidavit of publication must be filed with the county clerk.
Fictitious Business Name Statement forms may be obtained from the county clerk’s office of the county in which you intend to file, or the newspaper that will be publishing the statement. The filing fee for each county varies. Fees for publication also vary according to which newspaper is used for publication. For information on publication fees for Fictitious Business Name Statements, contact the legal advertising department of a newspaper of general circulation in the county in which the corporation intends to file.