Many clients think that once they incorporate, they have done all they need to legally register their business. However, there are other registrations that businesses should have in place to ensure that they are operating properly. The failure to properly register can result in increased taxes, fines or suspension of your company.

Here are some things to consider:

1.Business License – In order to operate your business locally, you may need to get a license for your business from the city or county where your business is located. In addition, if you conduct your business in another city other than where your business is located, you may also need an additional registration.

2.Sales Tax – If you directly sell a tangible product to a customer, you will need to register with the Board of Equalization (BOE). However, if you are only providing a service to a customer, you do not need to register with the BOE. For every product you sell, you must collect sales tax. If you are operating a business without the proper permits and licenses from the BOE, you may be subject to interest and penalty charges.

3.Employee Registration – If you have employees, you will need to register with the Employment Development Department (EDD). The EDD is the State’s department in charge of monitoring payroll taxes, unemployment insurance and state disability insurance. A business’s failure to register with the EDD, and to keep the EDD updated with each new hire can result in various penalties and fines.

To ensure that our clients are properly registered, we often conduct a legal audit of their registrations. If you need help with a legal audit of your business or to check if you are compliant, give us a call. We would love to help.

Glendale Location

616 E. Glenoaks Boulevard, Suite 203

Glendale, CA 91207

Sherman Oaks Location

15303 Ventura Boulevard, Suite 900

Sherman Oaks, CA 91403