Starting a legally Computer Repair Business in California?

[Flores]

Hello All !

These are the requirements if you want to open a Computer Repair Business in California.

1. Go to the County where You live and get a Business Name (Fictitious Name) Fee depending the County. On top of that the county requires You to go to your local news paper to register and publish your fictitious name for 5 consecutive weeks, fee around $50

2. Go to the City where You live and get Business License, Fee % depending How much money you are plan to make a Year.

3. Open a Business Checking Account. The bank can help you to get a EIN#.

4.You must get an Electronic Repair license from the Department of Consumers Affairs. Bureau of Electronics and Appliance Repair, Home furnishings and Thermal Insulation(BEARFTI) fail to do this you know what will happen. Fee $165 a Year.

5.If you are setting up your business as LLC, Partnership or Corporation you must reserve your business name with The California Department State.

6.If you plan to sell or resale You must get a Seller Permit from California State Board of Equalization.

7.Please, Please, Please protect your self and your business and get a business liability Insurance.

8. Go make money and do honest Work.

I know this info because I went trough all this the last 3 months.

Good luck !

 

[Paul Rodgers]

Or move to a business friendly state.

 

[brock029]

Or move to a business friendly state.

+1....Fillllllleeeeerrrrr

 

[coffee]

Quite different in Indiana.

1. Register a Business Name (I did DBA).
2. Setup your taxes.

No offense to anyone but I would rather scratch my eyes out with rusty forks than run a business in California or New York. After setting up your business in California I wonder what your tax rate is?

Best of luck and hope I didnt offend anyone.

coffee

 

[crashtech]

Idaho requirements:

1: DBA
2: Seller's Permit

If you want to have employees or be a partnership, you'll need an EIN from the feds, but that's all.

I think it's all about supply and demand. If California was not in demand as a place to do business, the authorities would eventually have to do something to make it more attractive. But once bureaucracies become entrenched and accustomed to having those powers and revenue streams, they can be almost impossible to change. I think the trend is for many CA businesses to be based in AZ or NV nowadays, because the issues the OP mentions are just the beginning.

I speak as a California "expatriate," by the way.

 

[Mr.Mike]

4.You must get an Electronic Repair license from the Department of Consumers Affairs. Bureau of Electronics and Appliance Repair, Home furnishings and Thermal Insulation(BEARFTI) fail to do this you know what will happen. Fee $165 a Year.

I've been in the business here in CA for 4 years now and this is the first I've heard of this. Who says you "must" get an ERL? Neither my County or the State has required me to do it. I wonder how many other CA techs haven't heard of this....

 

[crashtech]

Better get on the ball, they have a web site:

http://www.bear.ca.gov/licensing_info/index.shtml

 

[Mr.Mike]

No Teeth?

Better get on the ball, they have a web site:

http://www.bear.ca.gov/licensing_info/index.shtml

Yeah, I've been to the website. They say there is enforcement, and offer a couple of instances where they went after businesses. Doing my own little bit of quick research, I found from the BEAR website that:

Exactly 4 licensed Computer Repair Companies have a "clear" rating (meaning active & paid) in my general area (two counties). Out of 40 companies listed in my phonebook, only 4 were currently licensed by BEAR, of which 2 were RadioShack franchises. 3 were listed as "delinquent" and 4 were listed as "canceled". One of the canceled shops are still open and operating in my county. That leaves 36 companies in my area that are not currently licensed by BEAR. I'll bet very few have heard of this paper tiger as well.

 

[SprinterTech-WI]

Yeah, I've been to the website. They say there is enforcement, and offer a couple of instances where they went after businesses. Doing my own little bit of quick research, I found from the BEAR website that:

Exactly 4 licensed Computer Repair Companies have a "clear" rating (meaning active & paid) in my general area (two counties). Out of 40 companies listed in my phonebook, only 4 were currently licensed by BEAR, of which 2 were RadioShack franchises. 3 were listed as "delinquent" and 4 were listed as "canceled". One of the canceled shops are still open and operating in my county. That leaves 36 companies in my area that are not currently licensed by BEAR. I'll bet very few have heard of this paper tiger as well.

most of us not in CA are very aware of the need for a BEAR license...... I find it hard to believe that any self respecting business owner wouldn't research the needed licenses in their state...... also most CPA's and Lawyers know about it as well.
Just because half the other shops may not pay sales tax doesn't mean you shouldn't either...

 

[Mr.Mike]

most of us not in CA are very aware of the need for a BEAR license...... I find it hard to believe that any self respecting business owner wouldn't research the needed licenses in their state...... also most CPA's and Lawyers know about it as well.
Just because half the other shops may not pay sales tax doesn't mean you shouldn't either...

Clearly 36 out of 40 businesses not operating with this license does not represent "half of the other shops". This is a majority among which are some of the most long lived and best shops in this area. You have to remember (understatement coming) that CA is a different animal than most other states. Bureaus come and go here with who ever is in political office at the time. Many get dismantled even before they are fully set up. The best I can tell, this is a new organization that came in with the newly elected Governor. As with many new quasi-governmental agencies, I will keep my eye on it and see what develops. However, I don't need to have another group like this forcing me to pay for a license that says I uphold high standards. I already have high standards and practices and I have already paid for the training and experience for that!

 

[SprinterTech-WI]

Clearly 36 out of 40 businesses not operating with this license does not represent "half of the other shops". This is a majority among which are some of the most long lived and best shops in this area. You have to remember (understatement coming) that CA is a different animal than most other states. Bureaus come and go here with who ever is in political office at the time. Many get dismantled even before they are fully set up. The best I can tell, this is a new organization that came in with the newly elected Governor. As with many new quasi-governmental agencies, I will keep my eye on it and see what develops. However, I don't need to have another group like this forcing me to pay for a license that says I uphold high standards. I already have high standards and practices and I have already paid for the training and experience for that!

Well BEAR was created in 1963, and started regulating PC repair in 1983, so I would think by now people would have figured out they are not going away!
http://www.bear.ca.gov/about_us/history.shtml


Effective Responsibilities Extended to Include
June 1973 Major home appliances
June 1975 Appliances in private motor vehicles
January 1979 Microwave ovens
January 1983 Installation and repair of automobile radios
Personal computers
Satellite antennas and related equipment
January 1984 Video monitors
January 1987 Mandatory written estimates
June 1988 Cite and fine authority
January 1991 Installation and repair of automobile burglar alarms
January 1993 Home office products
Disconnection of service dealer's business telephones
Issuance of infractions
January 1994 Service contracts
January 2002 Deregulation of cellular phones

 

[AlaDes]

Seeing California's process makes me feel blessed that in West Virginia it only took me about 15 minutes to complete all the necessary paperwork, pay a $30 fee for a lifetime business license, and receive my permit lol.

 

[rsarceno]

I've been in the business here in CA for 4 years now and this is the first I've heard of this. Who says you "must" get an ERL? Neither my County or the State has required me to do it. I wonder how many other CA techs haven't heard of this....

I have a BEAR license This is my second business I established and I know about BEAR when I open my first business in 90's. I not 100% sure but I don't think you can register in your city if your not register with BEAR. For $165 it's not worth the hazzle.

 

[joydivision]

It is amazing how simple it is in the UK really. Just register with inland revenue and you're away. That is really the only legal requirement. However business rates may apply if you have business premises and in reality you do need public liability insurance although it is not a legal requirement as such.

I just cannot believe how difficult some states in the USA make it to setup a business. It is similar to France and a lot of young French people move to the UK to setup a business as it is so much more simple.

 

[Mr.Mike]

Well BEAR was created in 1963, and started regulating PC repair in 1983, so I would think by now people would have figured out they are not going away!

Interesting...I did my due diligence for almost an entire year before starting my business in 2008. Never once was any literature available or warnings made to register with BEAR. Well if I had better cough up $165 to this wonderful state of ours, then so be it (even if it does feel a bit like government approved extortion). Ah well, best to be on the right side of things.

I thank the OP for bringing this up and you Sprinter for that last bit of information. Now I wonder why so many computer outfits in my area aren't registered?

 

[crashtech]

That's the spirit, comrade! It's your humble honor to serve the greater good of the People's Republic of California!

Seriously, good choice, especially seeing as you are well identified in your sig...

 

[dogskool]

I've been in the business here in CA .... Who says you "must" get an ERL? .

Check out what our license fees go to:

http://www.youtube.com/watch?v=2HUl-CRVDVE

 

[HalfordsIT]

Australia is similar to the UK by the sounds of it.

Get ABN, (Australian Buisness Number) as a sole trader, company, trust or partnership.

Register a Buisness Name.

Do Honest Work.

That would be the bare minimum. Obviously sorting out insurance, and a good account is recommended.

 

[Mr.Mike]

Update: Fyi

I spoke with a rep from BEAR today and she said that if you are servicing home computers you must register with BEAR. If you are servicing businesses alone, you do not have to register. There issue is to protect the home consumer in the event they have a complaint about the service or serviser. Not those whe strictly work with businesses.

PIZZA TECHS OF CALIFORNIA BEWARE.

 

[SprinterTech-WI]

I spoke with a rep from BEAR today and she said that if you are servicing home computers you must register with BEAR. If you are servicing businesses alone, you do not have to register. There issue is to protect the home consumer in the event they have a complaint about the service or serviser. Not those whe strictly work with businesses.

PIZZA TECHS OF CALIFORNIA BEWARE.

Yep, that is the way they do it, just gotta make sure you don't touch home stuff, also I believe CA has a statewide deal about LV jobs over $600 so watch out for getting hit with fines for not pulling permits on low voltage jobs if they run over.