LLC License Vs. Business License: How To Start A Company In California Explained

Dec 22, 2023

No, LLC is not the same as Business License – it’s a bit more complicated. But BusinessRocket can make it make sense.

Whatever happened to, ‘Hey I have some apples, would you like to buy them?’ ‘Yes. Thank you’. That’s as complicated as it should be to open a business in this country.    •Ron Swanson, Parks and Recreation.

And he's right. Unfortunately, it is, indeed, more complicated. Which is why we need people like BusinessRocket - they know how to make the complicated business registration process as simple as ‘Hey I have some apples, would you like to buy them?’ ‘Yes. Thank you’.

To start, let's first clarify one very important thing: LLC is not the same as a Business License.

LLC Registration vs. Business License

If you've been thinking about starting a business, you may be confused by all the legal lingo - and don't worry, you're not alone. BusinessRocket has registered over 37,000 companies and they've noticed that many new business owners find the terms "business license" and "LLC registration" confusing.

In fact, they decided to write a whole guide about it - you can read it now at or stick around for the TL;DR version.

What is LLC Registration?

An LLC, or Limited Liability Company, is a business structure popular among business owners because of its liability protection and pass-through taxation. And if you're starting a business, LLC registration is the first step. Well, it's a first step that consists of many other steps...

I know, doesn't sound too great. But, the good news is you can get a professional like BusinessRocket to jump through all the hoops for you. They offer 24-hour LLC formation, which includes:

  • appointing a Registered Agent,
  • preparing and filing Articles of Organization,
  • obtaining a Federal Tax Identification Number (EIN), and
  • opening a bank account.

What is a Business License?

Okay, so now that you've registered the company, it's time to talk about business licenses. This is a separate process from LLC registration and whether you need a business license, what kind of business licenses you need, and from whom will depend on your occupation.

In the state of California, certain occupations require special permits - so you may need a health care license, or a seller's permit, or a building permit, etc. Business licenses can be issued on the local, state, or federal level, which again depends on your occupation. They are issued by different government agencies - and you can find guidance on that on the official CalGold site. Or, you can just let BusinessRocket worry about that - much faster and hassle-free.

Fastest Way to Start a Business in California

My two cents - whenever legal mumbo-jumbo comes into play and makes what should be a simple process very much not simple, it's always best to let a professional handle it. Mistakes can be both a waste of your time and your money - and when you're itching to start a business and start making a profit, time and money are about the last thing you want to waste.

So I say: "Hey, would you like to open a business fast?"

(For this to work, I'll assume you said "Yes. Thank you.")

That's as complicated as it IS to start a business in this country - when you work with BusinessRocket. They live up to their name.

See how they do it at

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