LA & OC Business Setup:
Your First Step Toward Government Contracts
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Want to win government contracts in Los Angeles or Orange County? Before you register in procurement portals or pursue certifications, your business foundation has to be in order. In Southern California, the rules aren’t the same everywhere — and missing a requirement can cost you work before you ever submit a bid.
If you’re setting up shop in Los Angeles or Orange County, here’s how to handle the business license requirements, registrations, and compliance steps that matter most.
Step 1: Pick Your Business Structure
Your business structure determines how you’re taxed, your liability, and what paperwork you need.
Sole proprietorship – simplest route, but no liability protection.
LLC – protects your personal assets and is popular for small businesses.
Corporation – more complex, but sometimes a better fit for growth or contracting opportunities.
👉 Anything beyond a sole proprietorship means filing with the California Secretary of State.
Step 2: Register Your Business Name (DBA)
If you’re operating under a name other than your own, you’ll need a Fictitious Business Name, often called a DBA (“doing business as”).
Los Angeles County now allows Fictitious Business Name filings online.
Los Angeles County: File with the LA County Registrar-Recorder/County Clerk.
Orange County: File with the OC Clerk-Recorder.
And don’t stop there — California requires you to publish your DBA in a local newspaper after filing. It’s an easy detail to overlook, but it’s essential for compliance.
Step 3: Secure Your Business License
Here’s where many new owners get tripped up: your business license depends on where you’re located, not just your county.
Your business license requirements depend on your location — not just your county.
City of Los Angeles – You must apply for a Business Tax Registration Certificate (BTRC) before you open your doors.
Other cities in LA County – Places like Pasadena, Long Beach, Santa Monica, and Glendale all have their own business license requirements.
Unincorporated LA County – Apply through the LA County Treasurer and Tax Collector.
Orange County – Cities like Anaheim, Irvine, and Santa Ana require business licenses, while the County of Orange licenses unincorporated areas.
💡 “In LA and OC, your business license depends on your location — not just the county.”
Step 4: Don’t Forget Taxes and Permits
No business can thrive without ensuring its taxes are in order.
Federal: Apply for an EIN (Tax ID Number) with the IRS.
State: Obtain your Seller’s Permit from the California Department of Tax and Fee Administration (CDTFA) if you sell goods, and register as an employer with EDD if you hire.
Local: In the City of Los Angeles, your business tax is based on gross receipts. Other LA County and Orange County cities charge business license fees that may be flat, tiered, or based on revenue. If your business is in an unincorporated area of either county, you’ll apply through the county, which generally charges a flat business license fee rather than a gross receipts tax.
If you’re home-based, in the construction industry, or in the food service industry, your business may also require special zoning or health permits. It’s better to check now than get caught later.
Step 5: Insurance and Industry Rules
Even the smallest businesses need protection. At a minimum, consider:
General liability insurance.
Workers’ comp if you have employees.
Professional liability if you provide consulting or technical services.
Automobile insurance
Don’t forget auto insurance if you or your employees drive for business.
For contractors, California requires a CSLB license for any job worth $500 or more. Food service businesses will need health permits from their county.
Step 6: Future-Proof for Government Contracts
Even if you’re not bidding today, government agencies and prime contractors will check your compliance later. Stay in good standing by:
Renewing DBAs, licenses, and insurance on time.
Keeping your business status active with the Secretary of State.
Filing required state forms (like Statements of Information) as scheduled.
Think of this as building credibility. The cleaner your foundation, the easier it will be to qualify for certifications (SBE, DBE, WBE) and register in procurement portals like RAMP LA , OC Procurement Center, and Cal eProcure.
Final Thoughts
Getting your business off the ground in Los Angeles or Orange County isn’t just about hanging a sign and opening the doors. It’s about building a foundation that will carry you into bigger opportunities — including government contracts.
Once you’ve put these basics in place, the next step is making connections. Read Navigating Your Local Support System to find out which agencies and organizations can help you grow.
Your Next Step
Setting up your business in Los Angeles or Orange County is your first step. The next step? Getting government ready.
👉 Download my free 7-Day Government Readiness Plan and other free tools to start building the systems that prime contractors and agencies expect to see.
When GovCon Ready in 90 Days launches this fall, you’ll already be ahead of the curve.
Let’s get your house in order—because readiness is your best strategy.
– Stephanie
About Stephanie:
Stephanie Clark-Ochoa is a Government Procurement Strategist and founder of Clark-Ochoa Business Services. Through Help 4 LA Subs, she provides practical tools and insights to help micro and small businesses in the Greater Los Angeles area become government-ready and thrive in public contracting.
Disclaimer: This post is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult a qualified advisor before making decisions specific to your business.
🔜 Next Week on the Blog: Startup Checklist for New LA & OC Subcontractors