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How to start a sole proprietorship in California

Last checked against the official sites: October 22, 2026

What a California sole proprietor needs: business name, fictitious business name (DBA) filing, EIN, bank account, and permits.

Sole proprietorship at a glance

State filing
None. You and the business are the same
Yearly California tax
No yearly business entity tax
Statement of Information
Not required
Personal liability
You are personally responsible for business debts
Taxes on profit
Reported on your personal return (Schedule C)
Paperwork
Least. A fictitious business name filing if you use a name other than your own

These are facts and official fees, not a recommendation. Which type fits your business depends on your situation; a lawyer or tax professional can help you decide.

Step by step

  1. Decide your business name

    Your own name, or a different one (a DBA).

    If the name includes your last name and doesn't suggest other owners (no "& Co.," "Associates," or "Group"), like "Maria Lopez Design," no filing is needed.

    Using any other name, like "Sunrise Bakery"? You file a fictitious business name (DBA) statement with your county. Check your county's rules if you're unsure.

  2. File a fictitious business name (if you use one) If it applies

    With your county, within 40 days of starting.

    File the statement with the county where your business is based. In Los Angeles County, it's the Registrar-Recorder/County Clerk, and you can file online.

    Then publish it in an approved local newspaper once a week for four weeks, starting within 30 days of filing.

    It lasts five years, then you refile. Dulybook reminds you.

  3. Get your EIN (federal tax ID) If it applies

    Optional without employees, but it keeps your Social Security number private.

    Apply on irs.gov. Have the Social Security number (or ITIN) of the person in charge ready.

    Finish in one sitting: the application can't be saved and times out after 15 minutes of no activity. The IRS online tool has set hours, so check them on the page.

    At the end, download the confirmation letter (CP 575). Upload it to Dulybook's Documents later so it's on file.

    Never pay a website for an EIN. The IRS gives it free.
  4. Open a business bank account

    Keep business money separate from personal money.

    Banks usually ask for your filed formation document (if you have one), your EIN letter, and a photo ID. Some also ask for an operating agreement or bylaws.

    Use this account only for the business. Mixing business and personal money makes bookkeeping harder, and for LLCs and corporations it can weaken liability protection.

  5. Permits and local registration

    Depends on what you sell and where you work.

    Selling physical products? You generally need a seller's permit from CDTFA before your first sale. It's free.

    Your city: many cities require a business license or tax registration. In the City of Los Angeles, it's the Business Tax Registration Certificate.

    Your industry: contractors, food businesses, car dealers, salons, and others need their own licenses. CalGold lists permits by city and business type.

Dulybook is a tracking and guidance tool, not tax or legal advice. Rules, fees, and websites change, so always confirm on the official agency page before you file or pay. Dulybook doesn't file anything for you. Terms of Service