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10 Steps to Starting a Business in California

Are you contemplating starting a business inoutset so that this doesn't become a problem.
California? This is a guide to setting up a
business in the sunny paradise ofFind advertising spaceAny good business
California.California is a fantastic place toowner knows that the flow of customers into
start a business, with several enormoustheir store is the lifeblood of their
cities like Los Angeles, San Francisco andbusiness. But not all business owners know
San  Diego.where and how to advertise their services.
Here are a few ideas:OfflineSet up business
The population and diversity of the state isin a high traffic areaBe sure your signage on
enough to begin just about any business youthe front of your business makes you easy to
could imagine, and thrive.Here are a fewsee. It should be big enough to be easily
things you should consider when starting yourread from the road, and bright enough to
California  business:stand out from those around it.Your signage
should make it immediately clear, to someone
Where in the city is your marketdriving by with only a second to glance at
demographic?The cities of Los Angeles, Sanit, exactly what your business does.Yellow
Francisco and San Diego are enormous, withpagesBillboardsBus benchesPoster boardsHand
many different pockets of demographics. Evenout flyersHost groups and clubs at your
the smaller communities in California likebusinessAttend local business networking
Sacramento, Stockton, Bakersfield and PalmfunctionsLocal newspapers like the la times (
Springs are large communities by any otherAngeles Citysearch ( Francisco Citysearch (
state standard. You may want to research inAngeles Craigslist ( Francisco Craigslist (
what location of the city your particularcan find a version of the above web sites for
business  would  be  best  suited.almost any of the larger cities in California
by putting the city name at the front of the
What does business space cost in yoururl.PPC ads on Google ( or Yahoo ( ads can be
desired location?Different parts of the citytargeted to a very localized area. You can
will have wildly varied monthly lease costs.ensure that only people surfing the internet
For example, in Los Angeles, Melrose Avenuein the Los Angeles area (for example) will
or Downtown LA will have much higher ratessee your ads. They will appear only when
than  Culver  City  or North Hollywood would.they're actually looking for your product, or
reading something similar to what you offer.
What kind of business entity should you
form?Learn how to set up a CaliforniaStay current on your California Tax Laws.One
Incorporation ( about places to form a DBA,thing that can ruin a new business quickly is
or  "Doing  Business  As".falling behind on taxes. Make sure you don't
make that mistake! Make a solid effort to
Get a Federal EIN numberYou can file for anunderstand what you need to know about
EIN as soon as you get your EIN from the IRSCalifornia taxes - talk to your accountant
( or you can have your incorporator get itabout  it!
when  you  file  your  incorporation.
Set up a web siteCustomers expect to be able
Get a business licenseGet a Los Angelesto find you on the Internet.Without a web
business license ( in Google for the termsite, you take away a potentially lucrative
"(city name) business license" and you willadvertising avenue (see the Internet
be presented with results for your particularadvertising tips above).Many places like
city.Yahoo ( make it easy to setup your own
website, with your own domain name.Find a
Set up a bank accountYou need your EIN anddomain name. I always use GoDaddy ( to
Incorporation (or DBA) paperwork before youregister my domain names. I've found that
can open a bank account and deposit checksDomainsBot ( is a great tool to find a cool
made out in your company's name. Once youdomain name. Once you find it with
have this paperwork, it's a fairly easyDomainsBot, you can register it with GoDaddy.
process. You just walk into your local
branch, and they should help you get set up.They say that 9 out of 10 businesses fail
The only bank I don't recommend is Washingtonwithin the first 5 years. Most businesses
Mutual, who wanted original copies ofare not financially or legally ready to
paperwork that the state of California hadsucceed. If you follow the simple steps in
kept. I had the certified copies from thethis article, you'll be better prepared to
state of California, but Wamu would onlyrun a long-term and profitable business. Los
accept the originals. I've had better luckAngeles is ready for you - you need to be
with California National Bank, they have veryready to handle Los Angeles!Oh yeah, and have
good  customer  service.fun!Travis Giggy is a business specialist and
one of the Founders of A website dedicated
Find an accountantLack of bookkeeping is oneto reviewing and listing the best services
of the top reasons new businesses fail. Asthat provide online legal services like
the owner of the business, you'll be veryincorporation, forming an LLC, getting your
business running your operations, and thelast will and testament, or getting a
books will fall behind. Be sure to set updivorce. See our special California
your books, and hire a good accountant at theIncorporation portal here.



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