Operating Business in California

Legal Compliance:

1. California Secretary of State (SOS) Filings:
   

   • Corporations: California corporations are required to file a Statement of Information (Form SI-200) with the Secretary of State within 90 days of incorporation and annually thereafter.
   • Limited Liability Companies (LLCs): LLCs must file a Statement of Information (Form LLC-12) every two years.

2. FINCEN Business Owner Information (BOI) Reporting:

   • Entities created or registered to do business in the United States in 2024 must report beneficial ownership information to FinCEN within 90 days of their creation or registration to do business, unless an exemption is available.

3. Annual Franchise Tax:
   

   • Corporations and LLCs in California are subject to an annual franchise tax. The tax amount is based on the entity's income or a minimum franchise tax ($800), whichever is higher.
   • Corporations must file Form 100 or Form 100S for state income tax purposes.

4. Business Licenses and Permits:

   • Businesses in California may require specific licenses or permits depending on their industry and location. It's crucial to identify and obtain the necessary licenses.

5. Employment Development Department (EDD) Reporting:

   • Employers must register with the California Employment Development Department (EDD) for payroll tax purposes.
   • Businesses with employees are required to report new hires and wages.

6. Sales and Use Tax:

   • Businesses engaged in selling tangible goods or certain services may need to register for and collect sales and use tax.
   • The California Department of Tax and Fee Administration (CDTFA) administers sales and use tax.

7. Worker's Compensation Insurance:
   

1. Employers in California are generally required to carry worker's compensation insurance to provide coverage for employees in case of work-related injuries or illnesses.
   
8. Financial Management:
   
1. Maintain accurate financial records and implement sound accounting practices.
   

It's important to note that regulations and reporting requirements can change, and new requirements may be introduced. For the latest and most accurate information, I recommend checking with the California Secretary of State, the California Franchise Tax Board, the California Department of Tax and Fee Administration (CDTFA), and other relevant state agencies. Additionally, consulting with legal and financial professionals who are familiar with current regulations is advisable for ensuring compliance with any new or updated requirements.