Three Things to Know Before Starting a Business in California

Are you thinking of starting a business in California? The golden state has a lot of opportunities, but also a lot of regulation. From environmental regulations to the minimum wage, California regulation often exceeds the national standard. Here’s three things you need to look at before getting started.

You Need All Kinds of Insurance

Everyone knows they need auto and liability insurance, but some new business owners forget about workers compensation insurance Sacramento CA. It protect you and your employees by providing coverage for injury on the job, and it’s required by law. Unemployment insurance is also required. This insurance fund, which is administered by the state, provides the unemployment benefits when workers are laid off. Your individual turnover rate will affect the rate you pay into this fund.

You Must Register As an Employer

Any employer with one or more W-2 employees must register with the state of California Employment Development Department. You’re also required to update the state with the employee’s status when they leave your employ. Employers with more than ten employees must file this information electronically.

Make Sure You Post All Required Signage

From required employee notices to signage for the public which is ADA compliant, California is one of the strictest states in the US when it comes to notifications. Examples include restroom signage and no smoking signs. If you serve food and beverages, you must prominently place signage warning about cancer and birth defect risk from drinking alcohol, among other cautions.

There are companies that specialize in ensuring compliance for your signage and other areas of your business. Employee signage alone is an area with detailed compliance requirements. It’s a good idea to talk to an attorney, a payroll specialist, and someone with knowledge about your specific industry before opening your doors or making hires to ensure that you’re following all the laws.

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