Client contracts
- Sign contracts in the LLC's name, and sign as a member or manager — not personally — to protect your liability shield.
- Cover scope, deliverables, fees, payment terms, late fees, and who owns the work product (intellectual property).
- Include limitation of liability, confidentiality, termination, and how disputes will be resolved.
- If you hire other freelancers, California's ABC test (AB5) makes it hard to treat them as independent contractors.
- Licensed professions (such as accounting, engineering, and law) need a license from the relevant California board.
Professional insurance
- Professional liability (errors and omissions) covers claims that your work or advice caused a client financial loss. Many clients require it.
- General liability covers injuries or property damage, such as at a client's office.
- Cyber liability matters if you handle client data or systems.
- Workers' comp is required in California once you have even one employee.
Invoicing
- California generally doesn't charge sales tax on services.
- Every California LLC owes the $800 minimum annual franchise tax, plus an extra LLC fee if gross receipts reach $250,000.
- Some cities, like Los Angeles and San Francisco, charge business taxes based on gross receipts.
- Put your LLC name, invoice number, dates, services, amounts, and any sales tax (as a separate line) on each invoice.
- Keep invoices and tax records organized — states can audit several years back.
These are California state and federal requirements. Cities and counties often add their own. Requirements and fees change — confirm with the agency before you apply. This is general information, not legal or tax advice.
Other California Business Types
California Construction & Trades: Licenses and Permits
Construction / Trades license, permit, tax, and insurance requirements for California LLCs, as bullet points with official links.
California Food Business: Licenses and Permits
Food Business license, permit, tax, and insurance requirements for California LLCs, as bullet points with official links.
California Transportation Business: Licenses and Permits
Transportation license, permit, tax, and insurance requirements for California LLCs, as bullet points with official links.
California Ecommerce Business: Licenses and Permits
Ecommerce license, permit, tax, and insurance requirements for California LLCs, as bullet points with official links.