When you are growing your business in California, there are many opportunities. Whether you choose to do business in south, central or northern California, you have to make sure you are keeping your business safe. To keep your business safe, you need to make sure that you are compliant with all of the laws which include California PEO laws if you are using a PEO. Many people find it beneficial to work with a PEO, especially if they are new to the state and are not well-versed in the laws. In this article, we are going to talk with you about keeping your business safe in the 5th largest economy in the world.

Is Your Business in Good Standing?

Making sure that your business is in good standing is important which is why you should make sure you have your Certificate of Good Standing also known as a Certificate of Existence. According to Incorporate.com it “is a state-issued document that shows that your corporation or limited liability company (LLC) has met its statutory requirements and is authorized to do business in that state. Think of it as a kind of 'snapshot' of your business's compliance status.”

Having your certificate on hand will save you time since lenders and other states may require it if you want to do business with them. You may also acquire various fees if you do not have it.

If you are not sure if your business is in good standing, you can check here. Moreover, according to the California Secretary of State website, if you need to apply for your certificate, you can do it in person by dropping it off, or you can mail it in.

Decide On Your Business Structure

If you are not currently operating in business, the preparation before you begin your business is extremely important. You need to decide on the structure of your business. Owning a business in California, while enticing is challenging and taxing (in the literal sense).

You can choose between a DBA (Doing Business As), Corporation or an LLC. All of these structures have their benefits, but you have to decide what is best for you and your business. A DBA gives you a different name but is not a separate structure from the individual owning the business. A corporation is separate from the individual who provides protection from liability and includes directors, officers, and shareholders. It is more complex than a DBA but is often the most popular choice for businesses wanting to raise funding. Finally, the LLC (Limited Liability Company), is a separate entity but is easy to manage and taxes are easy to understand.

Register Your Business

Check for how to register your business based on the structure that you have decided upon in the above step. Each state has a different way of doing things so even if you have done business in other states, you will need to ensure that you do things properly in California.

Obtain Business Licenses & Permits

After registering your business name, you need to obtain any necessary business licenses and permits to do business in your city or county. There may also be other requirements as you are filing for permits, to ensure that you have everything done properly to avoid any fees or penalties.

Be Aware of the Ever-Changing Laws

Once you have your processes and procedures in place and have ensured that you are compliant, that is not where things end. You must keep current with the ever-changing laws of California. In this article by Jon Siders of TriNet, he spoke about multiple changes that took place at the beginning of 2018 for the state of California.

Such changes as the New Parent Leave act, salary history inquiry ban, and minimum wage changes. Failure to comply will result in fines, penalties, and legal problems. If you are working with a PEO, they will be aware of these laws and ensure that you are up to date with the latest changes that you have in relations to your HR department.

Keep Your Important Contacts List Updated

When you are doing business in California, make sure you have all important contacts down in your Rolodex from the business programs division to California Taxation Department. Ensuring that you have all contact information at hand will allow you to deal with any important issues that might arise as you are doing business.


While you are conducting business, you may come across challenges in many areas, but most businesses run into challenges in the area of HR. The complications of managing and developing your human resources may cause excessive stress if you are not properly preparing for these issues.

If you hire your HR department in-house, you may find this is expensive and challenging because experienced HR professionals are in high demand. If you do opt to work with a PEO, you may find it not only more cost-effective but more effective overall since they have been working with multiple businesses to ensure compliance and proper dealing with employees.

Ensuring that your company is in good standing, always operating within the laws and making sure that you know the laws will enable you to continue to successfully operate your business in the California business environment to reap the benefits of the location’s wealthy inhabitants and growing economy.

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Author's Bio: 

Maqsood Rahman is the Founder of SEOaudit.agency, the best SEO services provider company in Bangladesh. He is addicted to technology and media trends and helps other companies with content strategies.