Business Law in California
Business law covers starting and running a California company — choosing the right entity, the filings and taxes that come with it, contracts, and resolving disputes. This hub explains the essentials in plain English, with the current Secretary of State and Franchise Tax Board requirements.
By Find Local Law Editorial Team · Last reviewed: May 24, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
Starting a California business comes down to a few early decisions that shape your liability and taxes for years: which entity to form, the filings that create and maintain it, and the contracts that run it. The guides below walk through choosing a structure, forming an LLC or a corporation (with current state fees), the basics of an enforceable contract, and what happens when a deal goes wrong. Fees and tax figures are current as of 2026 — always confirm on the Secretary of State and Franchise Tax Board sites before filing.
Guides
- Business & Breach of Contract Disputes in California
When a contract is broken in California, the non-breaching party can usually sue for money damages, and in some cases for specific performance. The deadline to sue is 4 years for a written contract and 2 years for an oral one (Code of Civil Procedure §337/§339).
- Choosing a Business Entity in California
California's common business structures — sole proprietorship, partnership, LLC, and corporation — differ mainly in personal liability and taxes. LLCs and corporations shield your personal assets but owe California's $800 minimum annual franchise tax; sole proprietorships and general partnerships avoid that tax but leave you personally liable for business debts.
- California Contract Basics
A valid California contract needs four things: parties capable of contracting, their mutual consent, a lawful object, and consideration (Civil Code §1550). Most contracts can be oral, but some — like real estate sales or agreements that can't be performed within a year — must be in writing under the statute of frauds.
- How to Form a Corporation in California
To form a California corporation you file Articles of Incorporation (Form ARTS-GS) with the Secretary of State for $100, file a Statement of Information (Form SI-550, $25) within 90 days and then annually, and pay the $800 minimum franchise tax — which is waived in the corporation's first year. An S corporation is a tax election, not a separate entity.
- How to Form an LLC in California
To form a California LLC you file Articles of Organization (Form LLC-1) with the Secretary of State for $70, designate an agent for service of process, file a Statement of Information (Form LLC-12, $20) within 90 days, and pay the $800 annual minimum franchise tax to the Franchise Tax Board.
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