On this guide
Follow the path in order.Amazon FBA channel guide • California launch path
Start Amazon FBA in California
Decide your setup, get the California registration order straight, and finish the early Amazon FBA launch steps without losing the official detail behind the answer.
Best for launching on Amazon FBA in California. Need the full appendix? Open the full reference guide.
On this journey
1 of 7 reviewed
Current chapter: Choose setup
On this journey
1 of 7 reviewed
Current chapter: Choose setup
01
Chapter 1 of 7
Choose the setup you want to launch with
Start with the setup decision first, then use the rest of the guide to build the state registrations and platform steps around it.
What this chapter does
Your setup choice, the short safe path, and the money realities that matter before spending deeply.How to move through it
Review sole proprietor.Use Part 1 to get oriented, then compare both setup paths before you spend more time or money.
3 parts to review • 29 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Short answer
Use this first part only to get oriented. The detailed state, platform, local, and packet steps will follow in order.- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the California registrations, Amazon FBA setup, local checks, and packet review in order.
Do next: Do not spend money yet.
Why this matters
Key detail
Do not spend money yet.
Keep in mind
- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the California registrations, Amazon FBA setup, local checks, and packet review in order.
Official links
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Short answer
Read both setup paths before you decide which one you want the rest of the launch flow to follow.- Best if you want the cheapest and simplest start.
- California does not require a California Secretary of State formation filing for a sole proprietorship.
- Faster launch.
Do next: Review sole proprietor.
Save the path you want to optimize around
The unchosen setup stays visible for comparison, but the chosen one gets visual priority so the reading path feels more intentional.
Quick tradeoff view
Use one pass to compare the launch speed, separation, and upkeep tradeoffs.The detailed comparison stays below. This lens just makes the two setup shapes easier to scan before you read every bullet.
Best for
Sole proprietor
Best if you want the cheapest and simplest start.
Best for
Single-member LLC
Best if you want a more durable setup for a real business.
Compare details
Sole proprietor
Best for
Best for
Best if you want the cheapest and simplest start.
What it means
- California does not require a California Secretary of State formation filing for a sole proprietorship.
- If you use a name other than your legal name, a fictitious business name filing is handled with the county where the principal place of business is located.
- Business income generally runs through your personal return.
- You usually do not get a liability shield.
Why someone chooses it
- Faster launch.
- Lower up-front cost.
- Fewer entity maintenance steps.
Main downside
Personal liability
Single-member LLC
Best for
Best for
Best if you want a more durable setup for a real business.
What it means
- California LLC formation uses Articles of Organization (Form LLC-1) with a $70 filing fee, plus an optional $5 certified copy charge if you request one.
- California also requires a Statement of Information (Form LLC-12) within 90 days after registration and then every 2 years, with a $20 filing fee.
- California imposes a recurring $800 annual LLC tax and may impose an additional LLC fee when California income reaches the statutory thresholds.
Why someone chooses it
- Liability protection.
- Cleaner setup for banking, vendors, bookkeeping, insurance, and scaling.
- Better fit for wholesale sourcing, trademarks, and eventual hiring.
Main downside
Higher cost and maintenance burden than a sole proprietorship
Official links
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Short answer
These are the friction points most likely to catch a new Amazon FBA operator off guard in California.- California LLCs have a real recurring tax burden even before the business becomes large.
- Amazon category approval, FBA eligibility, and documentation requirements can block a product even after you have formed the business.
- Physical-product sellers should plan around commercial general liability and product liability, even before Amazon formally forces the issue.
Do next: Review california-specific friction.
Why this matters
California-specific friction
Main takeaway
California LLCs have a real recurring tax burden even before the business becomes large.
Watch for
- California pushes name filings and many operating questions down to counties and cities.
- The marketplace-seller carveout is useful, but it does not answer every direct-sales fact pattern for you.
- Los Angeles adds a separate city layer if you operate there.
Amazon FBA-specific friction
Main takeaway
Amazon category approval, FBA eligibility, and documentation requirements can block a product even after you have formed the business.
Watch for
- Amazon account verification and review holds can slow launch timing.
- FBA storage, prep, and inbound mistakes create costly avoidable errors.
- Insurance rules are partly operationally important but not fully clean from public sources because the live agreement is login-gated.
Insurance reality
Main takeaway
Physical-product sellers should plan around commercial general liability and product liability, even before Amazon formally forces the issue.
Watch for
- Public Amazon forum materials say commercial liability insurance may be required within 30 days after exceeding USD 10,000 in gross proceeds in one month, or earlier if Amazon requests it.
- The live agreement and full insurance workflow are still login-gated in Seller Central, so re-check the live wording on the launch date before acting.
Official links
02
Chapter 2 of 7
Handle the California registration path in order
This is the state-side work before you rely on the platform to carry any part of the operating flow.
What this chapter does
The California and federal registration sequence, tax setup, and state-maintenance checks.How to move through it
Step 2: Choose your name and brand approach.Use the order check first, then move from name and entity work into EIN, banking, and tax setup.
4 parts to review • 38 source touchpoints behind the drawers.
Registration sequence
Keep the California and federal setup in this order.This chapter works best when you keep the filings, EIN, banking, and tax work in one clean sequence instead of bouncing between tabs.
- 1 Use the checklist to keep the order straight
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.
- 2 Handle name, entity, and filing setup
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.
- 3 Get the EIN and banking basics in place
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.
- 4 Close the California tax and filing branch
Keep the California tax and maintenance rules together before you assume the platform solved them.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Short answer
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.- Pick your business name.
- Form the business or file your county FBN if needed.
- Get an EIN from the IRS if applicable.
Do next: Pick your entity.
See checklist
Do these before you spend money
Grouped so the launch order stays easier to scan.
- Pick your entity.
- Pick your business name.
- Decide whether you are selling under your legal name, a county FBN/DBA, or a brand.
- Stay in low-risk general merchandise for the first launch.
- Avoid regulated categories such as food, supplements, cosmetics, medical-claim products, alcohol, heavy hazmat, and children's products unless you are doing separate category research.
- Make sure you can document sourcing with invoices and supplier records.
Do these before your first sale
Grouped so the launch order stays easier to scan.
- Form the business or file your county FBN if needed.
- Get an EIN from the IRS if applicable.
- Open a dedicated business bank account.
- Run the California CDTFA analysis before assuming you do or do not need a seller's permit.
- Check county and city permit rules, including Los Angeles business-tax and home-occupation rules if you will operate there.
- Create your Amazon account and complete identity verification.
Do these before launch goes live
Grouped so the launch order stays easier to scan.
- Complete the Amazon account setup branch.
- Confirm the product is allowed on Amazon and eligible for FBA.
- Set up prep, labeling, inbound shipping, and recordkeeping.
- Send a small first batch instead of a large speculative shipment.
Official links
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Short answer
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.- Step 3: Form the business.
- If you sell under your legal name:.
- No separate California Secretary of State formation filing is generally required.
Do next: Step 2: Choose your name and brand approach.
Step details
Best practical order for a California single-member LLC launch
- Choose the product lane first.
- Choose the entity name.
- Run the California name search.
- File LLC-1.
- Get the EIN.
- Open the bank account.
- Run the CDTFA analysis for your sales mix.
- File LLC-12 early instead of waiting near the deadline.
- Check county FBN rules if your operating name differs from the LLC name.
- Check city permits, zoning, and Los Angeles business-tax rules if applicable.
- Build the Amazon account and FBA workflow.
- Calendar FTB 3522, Form 568, FTB 3536 if needed, and the SOS biennial filing window.
Sole proprietor: Decide whether you need a local assumed-name filing
Main takeaway
If you sell under your legal name:
Watch for
- No separate California Secretary of State formation filing is generally required.
- File the fictitious business name statement with the county where the principal place of business is located.
- It does not create a liability shield.
Single-member LLC: Name search and naming standards
Main takeaway
Before filing:
Single-member LLC: File the formation document
Main takeaway
Core filing:
Watch for
- Form name: Articles of Organization.
- Form number: LLC-1.
Single-member LLC: Complete the immediate post-filing step
Main takeaway
Timing caveat:
Watch for
- Initial timing: within 90 days after registration.
- California then requires later filings every 2 years.
Single-member LLC: File the assumed-name or DBA form if needed
Main takeaway
If the LLC will operate under a name that is not its exact legal LLC name, confirm the county fictitious business name requirement before using the trade name.
Step 2: Choose your name and brand approach
Main guide step 2
What this step settles
You need to decide whether you are:
Why it matters: Important:
- operating under your own legal name,
- using a county FBN/DBA,
- reselling existing brands,
- creating your own brand,
- or building toward a private-label path.
- Amazon says your store name does not have to match the legal business name, but your registration details must still match real documents.
- If you want long-term brand control, start planning your trademark and Brand Registry path early.
Step 3: Form the business
Main guide step 3
What this step settles
If you choose sole proprietor: No California Secretary of State formation filing is required.
- If you choose sole proprietor: No California Secretary of State formation filing is required.
- If you choose sole proprietor: If you use a trade name instead of your legal name, file the fictitious business name statement with the county where your principal place of business is located.
- If you choose single-member LLC: Do this in order:
- If you choose single-member LLC: Run a preliminary California name check and decide whether you need a reservation.
- If you choose single-member LLC: File Articles of Organization (Form LLC-1) and pay the $70 filing fee. Add the optional $5 certified-copy fee only if you need that copy.
- If you choose single-member LLC: File Statement of Information (Form LLC-12) within 90 days.
- If you choose single-member LLC: If you will trade under a different business name, confirm the county FBN branch before using it.
- If you choose single-member LLC: California caveat:
- If you choose single-member LLC: The SOS pages clearly confirm online filing for LLC-1 and LLC-12. They do not give this pack a clean single answer on separate paper acceptance for LLC-1, so this draft treats paper acceptance as unverified and does not promise it.
Official links
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Short answer
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.- Step 5: Open banking and bookkeeping.
Do next: Step 4: Get your EIN.
Step details
Step 4: Get your EIN
Main guide step 4
What this step settles
Use the IRS EIN application if applicable. For most LLCs this is effectively part of the normal setup. For many sole proprietors it is optional but still useful for banking, wholesale relationships, Amazon account support, and privacy.
Step 5: Open banking and bookkeeping
Main guide step 5
What this step settles
Do this right away:
- Open a business checking account.
- Use one account and one card for business only.
- Save every invoice, shipping bill, Amazon fee report, and tax record.
- Build a tax folder and a compliance folder from day one.
Official links
Part 4 of 4
Close the California tax and filing branch
The California tax stack, registration timing, and maintenance follow-up.
Part 4 of 4
Close the California tax and filing branch
The California tax stack, registration timing, and maintenance follow-up.
Short answer
Keep the California tax and maintenance rules together before you assume the platform solved them.- Most LLCs should get one.
- California uses CDTFA online registration for seller's permits and related accounts.
- If all California sales are marketplace sales facilitated by a registered marketplace facilitator, a marketplace seller is not required to register for a California seller's permit or Certificate of Registration-Use Tax solely for those sales.
Do next: Step 6: Register for state tax, seller permit, or resale setup.
Step details
1. EIN
Main takeaway
Most LLCs should get one.
Watch for
- Sole proprietors may use one even when not strictly required because it simplifies banking and business operations.
2. California sales tax, seller permit, or equivalent registration
Main takeaway
California uses CDTFA online registration for seller's permits and related accounts.
Watch for
- If you are doing business in California and directly selling taxable tangible personal property at retail, a seller's permit is the normal baseline.
- Marketplace-only Amazon sales are a separate carveout and should not be confused with direct-sale fact patterns.
3. Marketplace or platform tax rule
Main takeaway
If all California sales are marketplace sales facilitated by a registered marketplace facilitator, a marketplace seller is not required to register for a California seller's permit or Certificate of Registration-Use Tax solely for those sales.
Watch for
- If you also make direct sales, separate CDTFA analysis applies.
4. Resale purchases or exempt purchasing
Main takeaway
CDTFA-230 may be used for resale purchases.
Watch for
- California also allows another document if it contains the required resale-certificate elements.
- An unregistered marketplace seller should explain why a permit is not required and should be prepared to identify the marketplace facilitator account or permit details tied to the resale path.
5. Entity tax treatment
Main takeaway
California generally follows federal classification rules for LLCs.
Watch for
- Even so, California's LLC regime still matters because disregarded LLCs and partnership-classified LLCs must file Form 568, pay the annual $800 tax, and review the additional LLC fee rules when organized, registered, or doing business in California.
6. Entity filing-fee or franchise-tax rule
Main takeaway
Return-due-date nuance:
Watch for
- FTB 3522 covers the annual LLC tax baseline of $800.
- The annual LLC tax is generally due by the 15th day of the 4th month after the tax year begins.
- Form 568 remains part of the baseline California LLC filing stack.
- If California income is at least $250,000, California's additional LLC fee tiers are $900, $2,500, $6,000, and $11,790, and FTB 3536 is the estimated-fee form generally due by the 15th day of the 6th month.
- A default single-member LLC owned by an individual generally uses the 15th day of the 4th month after year-end for the return due date.
- LLC ownership and classification changes can shift that return deadline, so re-check the FTB due-date table if the ownership or tax classification changes.
7. If the founder changes entity type later
Main takeaway
Treat a move from sole proprietor to LLC as a fresh agency-review event.
Watch for
- Re-check CDTFA registration, EDD payroll setup, local business-tax registration, bank records, and Amazon account documents instead of assuming they automatically transfer.
Sole proprietor: Register for California tax, seller permit, or reseller setup
Main takeaway
If all California sales are marketplace sales facilitated by a registered marketplace facilitator, California says that fact alone does not require a seller's permit or Certificate of Registration-Use Tax.
Watch for
- If you also make direct sales or otherwise fall into a separate CDTFA registration path, register before those taxable direct operations begin.
Sole proprietor: Understand the tax reality
Main takeaway
Business income generally runs through your personal federal and California income-tax returns.
Watch for
- A sole proprietorship does not shield personal assets from business liabilities.
Single-member LLC: File ongoing entity maintenance
Main takeaway
Key points:
Watch for
- due: every 2 years after the initial filing, inside the statutory window ending in the original registration month.
- Missing the Statement of Information can trigger penalties and suspension or forfeiture problems.
Step 6: Register for state tax, seller permit, or resale setup
Main guide step 6
What this step settles
Amazon-specific tax reality:
Why it matters: Do not assume "Amazon handles tax" means your California answer is finished. The marketplace-only carveout is narrow. The moment you add direct sales or another channel, your CDTFA registration answer may change.
- California uses CDTFA for seller's permits and related registration paths.
- If all of your California sales are marketplace sales facilitated by a registered marketplace facilitator, California says you are not required to register for a seller's permit or Certificate of Registration-Use Tax solely for those marketplace sales.
- If you also make direct sales, wholesale sales, your own website sales, pop-up sales, or any other non-marketplace sales, do a separate CDTFA analysis before launch.
- For resale purchases, CDTFA-230 can be used, but California also allows another document if it contains all required resale-certificate elements.
Official links
03
Chapter 3 of 7
Finish the Amazon FBA account and operations branch
Use these steps for the platform-side account, plan, operations, and eligibility work after the state basics line up.
What this chapter does
Amazon FBA account setup, operations, and pre-launch readiness.How to move through it
Step 10: Choose the right platform plan.Open the Amazon FBA branch only after the California basics line up, then finish plan and operations choices.
3 parts to review • 17 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Open the Amazon FBA account
The first account and verification work for the platform path.
Part 1 of 3
Open the Amazon FBA account
The first account and verification work for the platform path.
Short answer
Start the platform onboarding only after the legal name, EIN, and payout details line up cleanly.Do next: Step 9: Create your Amazon account.
Step details
Step 9: Create your Amazon account
Platform step 1
What this step settles
Have these ready:
Why it matters: Platform registration flow: Amazon baseline note: As of April 26, 2026, Amazon still publicly says you do not have to be an LLC to open a selling account.
- government-issued ID
- phone number
- email address
- bank account information
- tax information
- business registration or license if applicable
- proof of address from the last 180 days if Amazon asks
- Enter business information.
- Enter seller information.
- Enter billing information.
- Enter store and product information.
- Complete identity verification.
Official links
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Short answer
Use this part for the platform plan, pricing, or optional brand and program choices that come before operations.- Step 11: Decide whether brand or IP programs belong in the initial launch.
Do next: Step 10: Choose the right platform plan.
Step details
Step 10: Choose the right platform plan
Platform step 2
What this step settles
Simple rule:
Why it matters: If you expect to sell more than about 40 units per month or need more serious tools, start comparing against the Professional plan immediately.
- As of April 26, 2026, Amazon's public pricing page shows Individual at $0.99 per item sold and Professional at $39.99 per month.
- Referral fees are category-specific and additional FBA costs apply.
- The Professional plan usually becomes worth it once you expect meaningful unit volume, need certain category access, or want the fuller seller toolset.
Step 11: Decide whether brand or IP programs belong in the initial launch
Platform step 3
What this step settles
Brand Registry is optional at launch.
- Brand Registry is optional at launch.
- Amazon says Brand Registry is free, but the trademark work behind it is not.
- If you are building a private-label brand, planning for Brand Registry early can save friction later.
- If you are reselling existing brands, focus first on legitimate sourcing and clean invoices.
Official links
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Short answer
Close the operating branch only after the listing, trip, hosting, or operational eligibility checks are ready.- Step 13: Confirm product and category eligibility before scaling.
Do next: Step 12: Complete the fulfillment branch.
Step details
Step 12: Complete the fulfillment branch
Platform step 4
What this step settles
For Amazon FBA, do this in order:
Why it matters: California operating note: FBA warehousing does not replace local city or county review for any home-office, storage, or local-delivery activity you perform yourself.
- Register the account for FBA in Seller Central.
- Create or convert listings to FBA.
- Confirm product and FBA eligibility.
- Prep, label, and pack inventory.
- Create the shipment in Send to Amazon.
- Send a small first batch and monitor receiving, returns, and defects.
Step 13: Confirm product and category eligibility before scaling
Platform step 5
What this step settles
Some Amazon categories are open, some require a Professional plan, some require approval, and some are not open to third-party sellers.
- Some Amazon categories are open, some require a Professional plan, some require approval, and some are not open to third-party sellers.
- A product can be eligible for sale in the Amazon store and still be ineligible for FBA.
- Amazon's public beginner guidance still treats alcohol, tires, dangerous goods, and expiration-dated products as higher-friction examples.
- Keep invoices, supplier information, and any compliance records ready.
Official links
04
Chapter 4 of 7
Handle the local and city-specific branches
These local facts can still change the answer even after the state and platform path looks clear.
What this chapter does
Local permits, local taxes, city appendices, and location-specific operating rules.How to move through it
Review los angeles appendix.Only turn this chapter on if your location, city, or operating model changes the answer.
2 parts to review • 9 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Local permits and location checks
California pushes many business-permit questions down to counties and municipalities.
Part 1 of 2
Local permits and location checks
California pushes many business-permit questions down to counties and municipalities.
Short answer
California pushes many business-permit questions down to counties and municipalities.Do next: Review local permits and location checks.
Why this matters
Local permits and location checks
Main takeaway
California pushes many business-permit questions down to counties and municipalities.
Watch for
- For any place where the business will operate:.
- check the state business-resource pages,.
- contact the county clerk,.
- contact the city office,.
- ask zoning or building staff if the business will operate from home or store inventory.
- Typical local risk areas:.
- DBA/FBN filing.
- home occupation restrictions.
- zoning for storage.
- delivery traffic at a residence.
- fire-code limits.
- city business-tax registration.
Official links
Part 2 of 2
Los Angeles Appendix
If the business operates in Los Angeles, add one more review layer.
Part 2 of 2
Los Angeles Appendix
If the business operates in Los Angeles, add one more review layer.
Short answer
If the business operates in Los Angeles, add one more review layer.Do next: Review los angeles appendix.
Why this matters
Los Angeles Appendix
Main takeaway
If the business operates in Los Angeles, add one more review layer.
Watch for
- Los Angeles requires a Business Tax Registration Certificate if you are conducting business activities in the city.
- Los Angeles says you are engaged in business when you physically perform work in the city for 7 or more days per year.
- Annual renewal starts January 1 and becomes delinquent on the first business day of March.
- For the 2025 measure year, the small-business exemption threshold is $100,000 in worldwide gross receipts and the timely filing deadline is March 2, 2026.
- Home occupation limits include no exterior-visible business activity, a maximum of 1 nonresident employee, no more than 2 deliveries or pickups per day, and no stored commercial vehicles.
- This draft does not claim there is one official Los Angeles page that resolves every Amazon-FBA home-office fact pattern. The city rules above are the public floor, not a universal approval.
05
Chapter 5 of 7
Use the hiring and insurance branch only if it matches your plan
This branch matters when you expect to hire, scale, or need the insurance follow-up tied to the business model.
What this chapter does
Hiring, payroll, insurance, and scale-up risk reminders.How to move through it
Review insurance reality.Only turn this branch on when hiring, payroll, or coverage questions are close enough to matter.
2 parts to review • 5 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Short answer
Use these cards if the business will hire employees or carry payroll responsibilities soon.- Register with EDD within 15 days after paying more than $100 in wages in a calendar quarter.
- California requires workers' compensation insurance even if you have only 1 employee.
- Once you are a subject employer, EDD payroll administration brings state payroll-tax reporting and withholding obligations, including SDI withholding where applicable.
Do next: Review 1. employer registration.
Why this matters
1. Employer registration
Main takeaway
Register with EDD within 15 days after paying more than $100 in wages in a calendar quarter.
Watch for
- California's online path is e-Services for Business.
2. Workers' compensation
Main takeaway
California requires workers' compensation insurance even if you have only 1 employee.
Watch for
- Carry workers' compensation coverage because California requires it with 1 or more employees.
3. Disability, paid leave, or similar coverage
Main takeaway
Once you are a subject employer, EDD payroll administration brings state payroll-tax reporting and withholding obligations, including SDI withholding where applicable.
4. Exemption certificate if applicable
Main takeaway
This pack does not identify a general CE-200-style exemption certificate for an ordinary Amazon FBA seller.
Watch for
- Use the standard coverage path unless a narrow self-insurance or statutory exception clearly applies.
Official links
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Short answer
This is the insurance and liability follow-up tied to hiring, products, services, or growth.- Physical-product sellers should plan around commercial general liability and product liability, even before Amazon formally forces the issue.
Do next: Review insurance reality.
Why this matters
Insurance reality
Main takeaway
Physical-product sellers should plan around commercial general liability and product liability, even before Amazon formally forces the issue.
Watch for
- Public Amazon forum materials say commercial liability insurance may be required within 30 days after exceeding USD 10,000 in gross proceeds in one month, or earlier if Amazon requests it.
- The live agreement and full insurance workflow are still login-gated in Seller Central, so re-check the live wording on the launch date before acting.
06
Chapter 6 of 7
Keep the operating calendar and mistake list close after launch
Once you are live, use the ongoing calendar and the mistake list to keep the business on a safer path.
What this chapter does
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.How to move through it
Buying inventory before checking Amazon category and FBA eligibility.Use the recurring calendar first, then keep the repeated-mistake notes close after launch.
2 parts to review • 24 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Short answer
This groups the recurring checks by when they matter after launch.- Get the EIN if applicable.
- Finish the FBA branch.
- Confirm category and FBA eligibility.
Do next: Finish the entity or FBN setup.
See checklist
Before first sale
Grouped so the launch order stays easier to scan.
- Finish the entity or FBN setup.
- Get the EIN if applicable.
- Open the bank account.
- Complete the CDTFA analysis that applies to your mix of marketplace and direct sales.
- Check local permits.
- Complete Amazon verification.
Before first live launch
Grouped so the launch order stays easier to scan.
- Finish the FBA branch.
- Confirm category and FBA eligibility.
- Build accurate listings.
- Complete prep and inbound shipping.
Monthly
Grouped so the launch order stays easier to scan.
- Reconcile Amazon payouts, fees, refunds, and reimbursements.
- Review tax reserves.
- Review inventory age and stranded inventory issues.
- Check account health, suppressed listings, and policy notices.
Quarterly
Grouped so the launch order stays easier to scan.
- If CDTFA assigns you quarterly sales-tax filing, file on the cadence CDTFA gives you.
- If you are making estimated income-tax payments, calendar them separately with your tax preparer.
- Review whether your sales mix changed enough to alter the California marketplace-only registration answer.
Annual or periodic
Grouped so the launch order stays easier to scan.
- LLC-12 is due within 90 days after formation and then every 2 years. California also publishes a 6-month statutory filing window ending in the entity's registration month, while the SOS welcome letter says to file before the end of the calendar month of the original registration date. File early and do not try to thread the deadline.
- FTB 3522 annual LLC tax is generally due by the 15th day of the 4th month after the tax year begins.
- Form 568 remains part of the California LLC baseline. For a default single-member LLC owned by an individual, the return due date is generally the 15th day of the 4th month after the close of the tax year. Different ownership structures can shift that due date.
- If California income is at least $250,000, review the additional LLC fee tiers and the FTB 3536 estimated-fee deadline on the 15th day of the 6th month.
- In Los Angeles, annual business-tax renewals are due January 1 and become delinquent on the first business day of March. For the 2025 measure year, the small-business exemption threshold is $100,000 and the timely filing deadline is March 2, 2026.
- Re-check Amazon insurance wording and FinCEN BOI status each time you publish or materially update this pack.
Official links
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Short answer
These are the repeated errors called out in the research pack.- Treating Amazon marketplace collection as a complete answer to California tax registration.
- Using a brand or DBA before finishing the county filing branch.
- Ignoring city business-tax and zoning rules for a home-based setup.
Do next: Buying inventory before checking Amazon category and FBA eligibility.
Why this matters
Practical first-launch recommendation
- If you are testing casually with minimal risk, sole proprietor can work.
- If you intend to build a real Amazon FBA business, a single-member LLC is usually the better long-term path in California because inventory, platform risk, and city compliance issues add up quickly.
Key detail
Buying inventory before checking Amazon category and FBA eligibility
Keep in mind
- Treating Amazon marketplace collection as a complete answer to California tax registration
- Using a brand or DBA before finishing the county filing branch
- Ignoring city business-tax and zoning rules for a home-based setup
- Mixing personal and business money
- Launching with regulated products too early
- Keeping weak supplier documentation
- Missing LLC maintenance dates
Official links
07
Chapter 7 of 7
Review your selected steps and open the packet PDF
Use the review screen to decide what belongs in the packet, then open a real PDF preview in a new tab.
Review and print
Review the chapters you kept and make sure the right reminders stay visible.
Use this step to keep only the chapters that match the launch plan now, then keep the local and city reminders close before you treat the packet as final.
Saved setup choice
Single-member LLCThat choice stays visible while the rest of the journey gets lighter.
Packet count
4 chapters selectedOptional branches can stay out of the packet until they match the real launch plan.
Still verify locally
6 remindersLocal tax, zoning, insurance, and platform policy changes still need the official check.
Open the working launch packet with fillable tracker rows, then print or download it from the PDF tab.
Choose what stays in the packet
Selected chapters
- Choose setup
Your setup choice, the short safe path, and the money realities that matter before spending deeply. - California registrations
The California and federal registration sequence, tax setup, and state-maintenance checks. - Amazon FBA setup
Amazon FBA account setup, operations, and pre-launch readiness. - Local and city checks
Local permits, local taxes, city appendices, and location-specific operating rules. - Hiring and insurance
Hiring, payroll, insurance, and scale-up risk reminders. - Ongoing calendar and mistakes
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.
See local verification reminders
- Covers sole proprietorship and LLC basics.
- Main SOS online portal for business filings.
- State support and resource directory, not a filing portal.
- City says you are engaged in business if you physically perform work in the city for 7 or more days per year.
- Small-business exemption exists if eligible and renewed on time.
- For the 2025 measure year, the small-business exemption threshold is $100,000 and the timely deadline is March 2, 2026.
Change your path
Need a different route into this answer?
Use one of these links if you landed in the wrong platform, wrong state, or want the state-only baseline before you keep reading.