Accounting / CPA Permits & Licenses in San Jose, California

Required for change of occupancy classification per CA Building Code Sec. 110.

Required for all LLCs. Statement of Information (Form LLC-12) due within 90 days of formation ($20 fee), then biennially ($20).

Required for all California LLCs.

Individual requirement - at least one owner/employee must hold active CPA license to practice public accountancy. Prerequisites: 150 semester units education, 1 year experience, pass CPA exam.

Alternative for non-CPA public accountants; most CPA firms use CPA licensure instead.

Required if firm holds itself out as CPA firm or provides attest services. At least one owner/manager must be licensed CA CPA.

Filed with county clerk where principal place of business is located, then published in county newspaper.

Required for state payroll tax reporting; separate from federal EIN.

Most accounting firms do not need this unless selling books/software.

Accounting/CPA services are generally not subject to sales tax in California. However, if the LLC sells taxable items (e.g., tax preparation software), registration is required. See CDTFA Publication 119.

All California LLCs are subject to an $800 annual franchise tax, regardless of revenue or activity. This is in addition to any income tax. See CDTFA Form 35572.

Required for all employers in California. Includes withholding of state income tax from employee wages. Register via CDTFA BOE-441 form.

Employers must register with EDD and pay State Unemployment Insurance (SUI) tax on first $7,000 of each employee’s wages annually. New employer rate is 1.5% (2024).

LLC owners must report their share of income on personal California tax returns (Form 540). The LLC itself does not pay state income tax unless it elects corporate taxation.

All California LLCs must file Form 3522 annually and pay at least $800 franchise tax, regardless of income. This is separate from federal taxes.

Most California cities require a business license or tax registration. For example, Los Angeles requires a Business Tax Registration Certificate (https://www.lacity.org). Check local city/county websites.

San Francisco imposes a gross receipts tax on most businesses. Accounting firms may be subject depending on revenue thresholds. See https://sf.gov/business-tax-registration.

All businesses in unincorporated areas require this license. CPA/accounting firms classified under NAICS 5412.

Required for all businesses; professional services like CPA pay based on receipts per LAMC Sec. 21.03.

Applies to all businesses per San Francisco Business and Tax Regulations Code Sec. 902.

Most CA cities (e.g., San Diego Municipal Code 141.040, LA Municipal Code 12.05) restrict home offices for professional services; no client visits, limited signage.

Required to confirm property zoned for professional office use (e.g., LA County Code Title 22).

Applies universally when altering structure; enforced per CA Building Code.

Regulated by local sign ordinances (e.g., SF Planning Code Article 6).

Typically not required for small CPA offices <49 occupants per CA Fire Code Chapter 1, Sec. 105.

Required in most counties/cities per local ordinances (e.g., San Diego Code 531.01).

Mandatory for all employers with one or more employees in California, including part-time and family members. Sole proprietors without employees are exempt but may elect coverage. CPAs typically fall under Class Code 8906 (Accounting Services).

Per California Board of Accountancy (CBA) Regulation 5001, CPA firms performing attest services must maintain a minimum of $100,000 in professional liability insurance per claim and $300,000 aggregate. Sole practitioners and firms not performing attest services are exempt from this mandate.

Not legally required by California state law for all businesses, but strongly recommended. May be contractually required for office leases or client engagements. Not a statutory mandate for accounting firms.

California Business and Professions Code §5060 and CBA Regulation 5002 require CPA firms to file a surety bond of $25,000 (or self-insurance qualification) to register with the CBA. This bond protects the public against financial loss due to misconduct. Sole proprietors practicing under their own CPA license are not required to post a bond.

Required under California Vehicle Code §11580.1 for any vehicle registered to the business or used for business purposes. Minimum liability limits: $15,000 bodily injury per person, $30,000 per accident, $5,000 property damage. Applies regardless of business type if commercial vehicles are used.

Not required by law in California. Product liability coverage is only relevant if the business manufactures, distributes, or sells tangible goods. Accounting firms that do not sell physical products are not subject to this requirement.

Only applies if the business holds an alcohol license or regularly serves alcohol at events. Not relevant for standard accounting/CPA practices. No mandate for firms not involved in alcohol service.

Required for all LLCs for federal tax purposes, including sole-member LLCs that elect to be taxed as corporations or have employees. Even single-member LLCs without employees may need an EIN if they file certain tax forms (e.g., employment, excise, or alcohol/tobacco/firearms returns). For accounting firms, this is mandatory for tax reporting.

By default, a single-member LLC is disregarded for federal income tax (income reported on owner's Schedule C). Multi-member LLCs are treated as partnerships and must file Form 1065. A CPA firm structured as an LLC must comply accordingly. If taxed as a corporation (via election), Form 1120 or 1120-S applies. This is standard for all LLCs but critical for CPA firms due to complexity of compliance.

All employers with employees must comply with OSHA requirements, including displaying the OSHA Job Safety and Health – It's the Law poster. CPA firms with office-based employees are generally low-risk but still required to report work-related injuries and maintain a safe workplace. No specific federal safety standards apply uniquely to accounting firms beyond general office safety.

CPA firms that meet with clients in person must ensure physical accessibility (ramps, door widths, restrooms). Increasingly, DOJ interprets ADA to include website accessibility for services offered. While not industry-specific, CPA firms serving the public must comply. No federal license, but compliance is mandatory.

Standard accounting/CPA firms do not generate hazardous waste or use regulated chemicals. EPA requirements (e.g., RCRA, CERCLA) do not apply unless the business engages in non-standard activities (e.g., shredding large volumes of paper with industrial equipment, managing e-waste from IT services). Not applicable to typical CPA practice.

CPA firms must avoid deceptive advertising (e.g., false claims about credentials, guarantees of tax savings). Must comply with FTC’s Endorsement Guides and Truth-in-Advertising standards. Also subject to FTC’s Safeguards Rule (under GLBA) if handling client financial data — requires a written information security program. This is particularly relevant for accounting firms under FTC Rule 075, 16 CFR Part 314.

CPA firms routinely handle sensitive personal financial data. Must properly dispose of such information (e.g., shredding paper documents, wiping digital files). Applies under the Fair and Accurate Credit Transactions Act (FACTA), enforced by FTC. Industry-specific requirement due to nature of client data handled.

All U.S. employers must complete Form I-9 for each employee. CPA firms with employees must retain forms for 3 years after hire or 1 year after termination. Applies regardless of industry but mandatory for compliance.

FLSA governs minimum wage, overtime pay, and recordkeeping. CPA firms must classify employees vs. independent contractors correctly. Common issues include misclassifying junior accountants as exempt from overtime. Applies to all employers with employees, but high relevance due to professional staffing models.

Requires eligible employees to receive up to 12 weeks of unpaid, job-protected leave annually. Most small CPA firms may not meet the 50-employee threshold, but larger firms must comply. Not industry-specific but conditionally applicable.

Requires financial institutions — including CPA firms — to develop, implement, and maintain a comprehensive information security program to protect client data. Specifically applies to CPAs under the GLBA definition of "financial institution." Mandates written plan, employee training, access controls, encryption, and incident response. Industry-specific federal requirement.

While CPAs are not typically considered financial institutions under BSA, they may trigger reporting obligations if they engage in certain activities (e.g., structuring cash deposits for clients). However, under FinCEN’s 2023 update to the Beneficial Ownership Information (BOI) reporting, CPAs may be required to report on behalf of clients forming entities. Not a direct reporting requirement unless acting as a money services business. Low applicability but conditionally relevant.

While the reporting obligation falls on the business entity, CPAs who assist in formation may be responsible for filing. The Corporate Transparency Act (CTA) requires reporting of beneficial ownership to FinCEN. CPAs acting as "preparers" are not directly liable unless they are the designated filer. However, if a CPA is engaged to file, they must ensure compliance. Indirect federal compliance responsibility.

No federal license is required to practice as a CPA. However, to e-file federal tax returns, CPAs must register as an Authorized IRS e-file Provider. This is not a license but a compliance requirement for electronic submission. Involves obtaining a PTIN and completing IRS e-file application. Industry-specific federal requirement for tax preparation services.

Required for all LLCs in California. Due every 2 years on the anniversary of the LLC’s formation month.

All LLCs doing business in California must pay an annual $800 franchise tax regardless of income. First-year exemption applies only if no business activity occurred.

Single-member LLCs taxed as disregarded entities report income on Schedule C of Form 1040.

Self-employed individuals, including CPA business owners, must make estimated tax payments if they expect to owe $1,000 or more.

California requires estimated tax payments if tax liability exceeds $500 after credits and withholding.

Most cities in California require a business license. Contact local city clerk for exact deadline and fee.

CPA licenses must be renewed biennially. Renewal is tied to continuing education compliance.

Includes 2 hours of ethics every renewal cycle. CPE must be from CBA-approved providers.

CPA license must be visibly displayed at the place of business. Local business license may also need posting.

Required postings include CA Minimum Wage, Workers’ Compensation, EEO, and OSHA notices. Must be in a conspicuous location accessible to employees.

CPA firms should retain client records per professional standards (typically 7 years). California does not specify a longer retention period for state tax records.

CA EIN is required for payroll tax reporting. Employers must file DE 9 (Quarterly) and DE 9C (Annual W-2 equivalent).

Employers must report wages and withholdings quarterly using Form DE 9 and contribute to Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability Insurance (SDI).

Form DE 9C reconciles wages and taxes reported quarterly and provides W-2 equivalent data to EDD.

All employers in California must carry workers’ compensation insurance, even if only one employee.

The SOS sends a reminder notice 60 days prior to the biennial Statement of Information deadline. Not a substitute for filing.