What to Do After You Register Your Business in California (Financial Checklist)

You filed your LLC or corporation with the California Secretary of State. Congratulations — that's step one.

Now what?

Most new business owners stop at registration and figure out the rest as they go. That's fine for getting started. But there's a short list of things you should take care of in the first 30 to 90 days that will make a significant difference in how your business operates — and whether you'll be able to access capital when you need it.

Here's the checklist.

Step 1 — Get Your EIN (Employer Identification Number)

Your EIN is your business's tax identification number. You need it to open a business bank account, hire employees, file business taxes, and apply for business credit or financing.

How to get it: Apply directly at IRS.gov. It's free. It takes about 5 minutes online and you receive your EIN immediately upon completion.

Do this before anything else. Almost everything on this list requires it.

Step 2 — Open a Business Checking Account

This is non-negotiable.

A dedicated business checking account separates your personal finances from your business finances — which matters for taxes, liability protection, and your ability to qualify for business funding.

Why it matters for funding: When you apply for business capital, lenders ask for 3–6 months of business bank statements. They're looking at your real revenue and cash flow. If your business income is mixed in with your personal account, you can't provide clean documentation — and you likely won't qualify.

Open a business checking account as soon as you have your EIN. Use it exclusively for business income and expenses from day one.

What to look for: Low monthly fees, no minimum balance requirements, and easy online access. Many banks and credit unions offer free business checking for new accounts. Online options like Relay, Mercury, or Bluevine are popular with small business owners for their low fees and modern interfaces.

Step 3 — Register for State and Local Business Licenses

Forming an LLC or corporation with the California Secretary of State is entity formation — not a business license. Depending on your industry and location, you may need additional licenses to legally operate.

California state licenses: Some industries require state-level licensing (contractors, healthcare providers, food service, real estate, financial services, etc.). Check the CalGold database (calgold.ca.gov) to find what applies to your business type.

Local business license: Most California cities and counties require a local business license or business tax certificate. Check with your city's business licensing office — Fresno, for example, requires a City of Fresno Business License for businesses operating within city limits.

Seller's permit: If you sell taxable goods or services in California, you need a seller's permit from the California Department of Tax and Fee Administration (CDTFA). Free to obtain at cdtfa.ca.gov.

Step 4 — File Your Statement of Information

California requires LLCs and corporations to file a Statement of Information with the Secretary of State within 90 days of formation, and then periodically thereafter (every 2 years for LLCs, annually for corporations).

The fee: $20 for LLCs, $25 for corporations.

Why it matters: Failure to file results in a $250 penalty and can cause your business to fall into "suspended" status with the SOS — which can affect your ability to conduct business, enter contracts, and access financing.

File at bizfile.sos.ca.gov.

Step 5 — Set Up Basic Bookkeeping From Day One

You don't need a full accounting system immediately, but you need some system — even a spreadsheet — to track income and expenses from the start.

Why: Clean financials make everything easier — taxes, funding applications, understanding your actual margins. Trying to reconstruct months of transactions later is painful and expensive.

Options:

Wave — free, basic, good for solo operators
QuickBooks Simple Start — ~$30/month, most widely accepted by lenders and accountants
Relay + QuickBooks — best combination for a clean paper trail

Track every dollar in and every dollar out from the first transaction.

Step 6 — Understand Your Funding Options Before You Need Them

Here's the move most new business owners miss: they don't think about business funding until they're in a cash flow crisis. By then, options narrow and desperation sets in.

The smarter play is to understand what's available — and what you need to do now to qualify for it later.

The 6-month mark is important. Most alternative business lending products require a minimum of 6 months in business. That means the clock starts the day you open. At month 6, if you've been generating consistent revenue and have clean bank statements, you'll have real funding options available to you.

What you need to qualify at 6 months:

✅ 6 months in business (from your formation date or first revenue date)
✅ Business checking account (with 6 months of statements)
✅ $10,000+ gross revenue per month
✅ No minimum credit score required on most products

What's available: Working capital loans, business lines of credit, equipment financing, revenue-based advances, and more. Approvals in as little as 24 hours. Funding as fast as one business day on some products.

The best time to look into your options is before you need them — not when you're already behind.

See What Your Business Could Qualify For at 6 Months →

One More Thing — Keep Your Business in Good Standing

A common mistake new business owners make: they form their LLC and then neglect the ongoing compliance requirements. In California, this means:

Franchise Tax Board minimum tax: California LLCs owe a minimum $800 annual franchise tax, due the first year and every year after. Pay this or your business can be suspended by the FTB.

Annual/biennial Statement of Information: File on time with the SOS.

Business license renewal: Most local licenses require annual renewal.

Staying in good standing matters for funding, contracts, and liability protection. Put the renewal dates in your calendar now.

CA Business Capital | Fresno, California | info@cabizfunding.com | 559-549-4717

What to Do After You Register Your Business in California (The Financial Checklist)