Are you planning to do business in Orange County, California or wondering how to do your business here? This article answers all your questions in the simplest ways for your understanding. The County of Orange purposes to provide easy to reach services for the business community.
How to do business in Orange County, California
In case you are planning to start a new business in Orange County California, you need to have in mind these basic factors to help you start the business in the most right and legal way.
Determine Your Business Structure
Before starting a business, the very first thing you should do is to decide on the business structure your company should have, is it the partnership kind of structure, limited liability companies, or corporations? If you want to do business on your own, however, you do not essentially need to select the business entity you want to belong to because solo entrepreneurs are automatically viewed as sole proprietors by the California government. Determining your business structure will help you plan effectively for the success of your business.
Ensure to Keep Track of the Business’ Income and Expenses
Keeping track of your business income and expenses enables you to monitor the income flow in your business, you can control cash flow in and cash flow out to prevent going bankrupt. Apart from that, it is also a government expectation that you give an account of all your income and expenses and pay taxes accordingly. This is because it is important to pay the tax whenever you earn money. The tax is taken from your net profit. Apart from the government’s annual taxation, you will pay dues to several other small state entities, I know this sounds overwhelming, but it is important because in cases where you want to acquire loans, your business tax records will be reviewed and they shall determine whether you get the loan or not.
Get your business a Tax Identification Number
A tax identification number serve almost the same purpose as an individual’s social security number but only better because unlike social security numbers it is not vulnerable to identity theft or misuse. A tax Identification number is required when performing business transactions and filing tax returns and yearly. Therefore, as a prudent business owner, you should contact Californians internal revenue service and apply for one. Some of the advantages of having a tax identification number to your business include:
- Gets you a tax write-off for products and services from vendors
- Ensures your business as you need not reveal your social security number
When deciding on a business name consider the following:
- A fictitious business name – This is one without either your first or last names in it.
- Ensure no other business is using that name – you can check for the availability of your chosen fictitious name from the California Secretary of state website and the US Patent & Trademark Office.
- File for an application for the name.
Since the process of filing for a fictitious business name usually takes time, ensure to not only file for its application at the records office but also publish it in a newspaper for general circulation. This is because the county recorder may make a mistake of accepting a similar name for a different company in the county and as a result get you in trouble.
Recognize and Conform with the City Regulations
The moment you think of starting a business, ensure you recognize and conform to the regulations and laws that govern that country. Every county has their own set of rules governing businesses, most businesses are allowed but it is important to seek ones which are not from the county’s licensing people to avoid your business closure. You should find out whether the business you intend to start can be licensed in the city and in your preferred location. Make plans also to get approval from all other state agencies.