Start a Business in Bakersfield, CA: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Bakersfield, CA, is a plus for any entrepreneur. In general, setting up any form of business in California, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Bakersfield, CA. With an urban population of 556892 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in California. Like most places in the US, Bakersfield, CA also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Bakersfield, CA has a proper business environment for all.
In this article, you will read about how to start a business in Bakersfield and why you should choose Bakersfield to start and run your business. We recommend you check below the important facts about Bakersfield, CA; these might help you.
On this page, you’ll learn about the following:
- Bakersfield, CA Household Income Statistics
- Bakersfield, CA Education & Labor force Facts
- Bakersfield, CA Demographics
- How to Start a Business in Bakersfield, CA
- Other Things to do After Starting Your Business
- Important Bakersfield Stats for Starting a Business
- Reasons to Start a Business in Bakersfield
- FAQ About Bakersfield, CA
Bakersfield, CA Household Income Statistics
|Bakersfield Median household income||65687 USD|
|Bakersfield households with dual income earners||52 %|
|Bakersfield households $150K+ Income||12.7 %|
|Bakersfield households $100K+ Income||29.8 %|
|Bakersfield households $100-150K Income||17.1 %|
|Bakersfield households $75-100K+ Income||13.9 %|
|Bakersfield households $50-75K+ Income||17.9 %|
|Bakersfield households $35-50K+ Income||11.6 %|
|Bakersfield households $25-35K+ Income||8.9 %|
Bakersfield, CA Education & Labor force Facts
|Bakersfield residents with a bachelor’s degree (or equivalent)||14.9 %|
|Bakersfield residents with at least a 4-year degree||22.6 %|
|Bakersfield residents with a graduate degree||7.7 %|
|Bakersfield residents with a high school diploma but no more||25.4 %|
|Bakersfield residents with less than high school education||18.6 %|
|Bakersfield residents with some college but no more||33.4 %|
|Bakersfield residents with a Bachelor’s degree or higher (STEM fields)||46.3 %|
|Bakersfield households that own (rather than rent) their residence||59.4 %|
|Bakersfield residents 16 and older in the labor force||63.2 %|
|Bakersfield residents unemployed||7.6 %|
Bakersfield, CA Demographics
|Bakersfield residents aged 0-9||16.5 %|
|Bakersfield residents aged 10-19||15.9 %|
|Bakersfield residents aged 20-29||16 %|
|Bakersfield residents aged 30-39||14.5 %|
|Bakersfield residents aged 40-49||11.9 %|
|Bakersfield residents aged 50-59||10.5 %|
|Bakersfield residents aged 60-69||8.3 %|
|Bakersfield residents aged 70-79||3.9 %|
|Bakersfield residents aged over 80||2.4 %|
|The average size of resident families in Bakersfield, CA||3.65|
|Estimated population per square kilometer in Bakersfield, CA||979|
|Bakersfield, CA urban population (estimate)||556892|
|Bakersfield, CA municipal population (estimate)||379879|
Now that you know what makes Bakersfield of California good for business, let’s get started with the exact steps on how to start a business in Bakersfield.
How to Start a Business in Bakersfield, CA
Starting a business in Bakersfield, CA, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in California, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Bakersfield.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Bakersfield. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a California LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of California to do the California LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in California, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Bakersfield, CA by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a California LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Bakersfield can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the California
- Must have a physical street address in the California
- Must have legal rights to conduct business in the California
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, California. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the California SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Bakersfield, CA. Your California LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
In future, if any member wants to leave the company or you want to dissolve the business, then the California operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Bakersfield, CA. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Bakersfield, California, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Bakersfield Stats for Starting a Business
Before you start a business in Bakersfield, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Bakersfield has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
As we talk about the urban population density, the young population percentage in the city is approximately 16 (people in their 20s) and 14.5 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 31. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Bakersfield has approximately 2.4 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Another important factor to mention about Bakersfield is the home value of owned properties. The average value of owned houses is 256533. Also, the percentage of people living in their own houses is 59.4. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Bakersfield who still do not have health insurance. The rate of people not having health insurance is 7.4. This depicts the lifestyle and overall health demography of Bakersfield. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Bakersfield, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
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Reasons to Start a Business in Bakersfield
Bakersfield offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Bakersfield. Here are some of the reasons,
Stable Economic Growth
Bakersfield or any other city in California has stable economic growth and an environment that helps any business to grow successfully. The economic structure of California shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Bakersfield, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Bakersfield is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the California LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in California or any other state. That means if you are operating any business in Bakersfield, then California State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in California. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Bakersfield, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 63.2 is the percentage of labour participation. Hence, it is clear that having a business in Bakersfield will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Bakersfield, California, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Bakersfield.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 23.4. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Bakersfield (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Bakersfield. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Bakersfield is 14.5. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
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How Fast Can You Start Business In Bakersfield California
Getting a business started is not easy. You must have a business idea, obtain the necessary permits and licenses, and pay taxes. It is also important to have a solid business plan and strategy.
In California, you can start a business as a sole proprietorship, LLC, or corporation. You can also set up a website to promote your business. The best business structure for you will depend on your business.
The cost to start a business in California varies depending on your business type. There are incentives and tax deductions offered to business owners. You may also be able to get an EIN number from the IRS. The cost of licensing your business will also vary depending on your business type.
The first step to starting a business in California is to find a location for your business. It is important to select the right location for your business. The city of Bakersfield is located halfway between Los Angeles and Fresno, and it has a relatively strong new construction market. The housing market in Bakersfield has also seen growth, and homes are relatively affordable.
The city has a young population. The median age is 23.3, which is low compared to the rest of the country. This young population makes it a perfect place to start a tech business. Having access to education and mentors also makes it a good place for innovators. The city has an Economic and Community Development team that works to maintain a healthy and stable economic base for the city. It also works to improve neighborhoods and quality of life.
You can start a business in East Bakersfield, CA, which offers a great business environment for all types of entrepreneurs. You will be able to register your business online and get a business license in a few days. There are many businesses that have relocated to East Bakersfield, CA. They include restaurants and food trucks. The economy is growing and companies are eager to move to East Bakersfield. There is also a strong and stable political environment. You can find out all the information you need about starting a business in East Bakersfield by visiting the city’s website.
It is important to make sure your business has insurance. Small business insurance covers your business against a range of commercial hazards. You may also need general liability insurance. The minimum insurance coverage for your business may vary depending on your business type. The most common policy is health & safety at work. Regardless of where you live, it is always a good idea to have health insurance.
You can also open a business bank account in the US. This can help you get business loans, and it increases the credibility of your business. The bank account will also help you make business transactions easier.
You should also know the rules and regulations that apply to establishing a business in California. You must register your business with the Secretary of State. This can be done by filing an application to reserve your business name. If you have a business name already, you may use that name to register your business.
FAQ About Bakersfield, CA
Bakersfield, CA is growing fast in terms of economic growth. This is happening because of the industries and startups the city has. Their contribution to the economy is immense in Bakersfield. More businesses are coming to the city. Hence, it is growing fast compared to other cities.
Your sort of company in Bakersfield, CA, will determine how you answer. If you own an LLC, you must file your income tax using your personal income as the basis. Bakersfield, CA’s LLC receives no business revenue.
Many people believe that forming an LLC in Bakersfield, CA is costly, however it is not. In Bakersfield, you may create an LLC for as low as $70 if you already have a name. Additionally, a DBA or assumed name may be used while registering an LLC in Bakersfield.
Before you sell your goods in Bakersfield, CA, confirm that you have the following. Have a good selling strategy first, and then be aware of your rivals. The third is your clients. Pricing the product comes in fourth, while marketing and product promotion come in last. Each of these is crucial to the sale of a product in Bakersfield, CA.
Yes, you can start a business with no money in Bakersfield, CA. Although, you must pay a minimum amount of state filing fee to the California SOS to set up your business. However, these filing fees are tax deductible. So, you might be able to start your business for free.
Bakersfield, CA has a few tiny companies that are quite successful financially. Furthermore, the initial startup costs for these firms are low. These companies operate in the fields of food production, real estate, small auto dealerships, and online goods sales.
You can make money with an LLC in Bakersfield, CA. One way is to sell goods to other businesses. Another way is to provide services to other businesses. If you have a website-building business, for example, you might make a website for them. You could also provide consulting services.
As a small business owner, you may be wondering if you need to purchase insurance for your company in Bakersfield, CA. Yes, it is the solution. Small business insurance is a type of business insurance that covers a variety of business risks. Property damage, liability, and business disruption are some of these dangers.
In Bakersfield, CA, several significant companies have been founded. For instance, a business that offers waffles, cookie cutters, or ice cream in the form of a FL.
A fantastic approach to generate money in Bakersfield, CA, is to start a small company. In Bakersfield, CA, launching a small company has several advantages. For instance, establishing a small firm is rather inexpensive. In Bakersfield, CA, forming an LLC costs $70.
In Bakersfield, CA, having an LLC means you have to pay self-employment tax along with income tax. Besides, LLCs are liable to pay filing fees that are more than the fees of sole proprietorships. LLCs are more complex than running a sole proprietorship company.
In Bakersfield, CA, real estate is a dynamic industry, and shock may cause house values to drop. On the other hand, the real estate industry in Bakersfield, CA, is flourishing. Therefore, it is difficult to predict whether or not the price of homes would decrease.
Any business that requires less capital to start is the simplest enterprise in Bakersfield, CA. The demand for the business must also be considered, in addition to the cost. Dog walkers, personal trainers, food trucks, and home bakers may all be wonderful choices.
No, LLCs are not free in Bakersfield, CA. To form an LLC in Bakersfield, CA, you must pay the LLC filing fee charged by the state. Also, there are some taxes one has to pay to run an LLC in Bakersfield, CA.
In Bakersfield, CA, online companies are not only popular but also inexpensive to start. The least expensive businesses to establish in Bakersfield, CA might be online legal consulting, online selling, or online education. Additionally, you may open a home-based bakery.
There are many factors to consider when deciding whether to rent or buy a property in Bakersfield, CA. The most important thing to consider is the cost of both. If you’ve to start a business, it’s best to research the market and talk to the agent before making a decision.
An LLC in Bakersfield, CA lasts as long as you maintain the company and it is in operation. One has to renew the LLC in Bakersfield, CA on time to prevent it from being shut down.
The robust economy of Bakersfield, CA, is the key driver of company relocation. This is made feasible by the city’s current industry and service sectors. Due to Bakersfield’s expanding economy, other companies are eager to relocate there.
Having a business in Bakersfield, CA needs a few homework. Before you start forming a business in Bakersfield, CA, make sure you have these 5 things with you. 1. A business plan, 2. Business name, 3. Funds, 4. Permits, and finally 5. Promotional plan.
LLCs are a highly common kind of company in Bakersfield, CA. Because LLCs are simple to create, this is the case. You won’t be responsible for paying income taxes if your LLC is not profitable. In addition, LLCs are affordable and simple to keep up.
There are many ways to make money from home in Bakersfield, CA. One of the most popular is to sell items online. This is a great way to make money from home in Bakersfield, CA. You could also make money from home in Bakersfield, CA by selling your own products.
In Bakersfield, CA, the first thing you need is a detailed business plan. It should have all the details from business idea, expected budget, type of business structure, marketing plans, and selling strategy. Then, you can start your business successfully.
In Bakersfield, CA, a single proprietorship is preferable over an LLC since it will be less expensive to form one. LLC could be a superior option in Bakersfield, CA as compared to sole proprietorship.
Many factors make Bakersfield, CA, a well-liked city. Despite being a corporate metropolis, Bakersfield offers a vibrant arts and cultural scene. In addition, the city’s economy has grown tremendously in recent years. It is gaining recognition as one of the top places for startups.
In Bakersfield, CA, you might start a company with $1000 that provides a service to customers who are interested in local news. You may provide a daily email service listing the top five events taking place in the city.
Whether relocating to Bakersfield, CA, is a smart move or not is a little debatable. You may make a choice based on the kind of company you are doing. Bakersfield has incredible opportunities for budding entrepreneurs who want to start their own company.
The cost of business insurance in Bakersfield, CA varies based on the sort of business you have, the size of your organization, and the nature of the firm. For instance, a small business with less than 10 workers may spend as low as $1,000 annually for general insurance.
The main requirement to start your business in Bakersfield, CA is the permit to conduct business in Bakersfield, CA. Check with the local authorities for detailed regulations and permits to conduct business in Bakersfield before you start your business.
If you have the correct concept, Bakersfield, CA is an excellent spot to launch a small company. Small enterprises have several chances in this thriving metropolis. Finding an untapped niche is one of the finest methods to launch a small company.
You may, in fact, operate your own company from your Bakersfield, CA, home. However, not all enterprises may legally be run from homes. To find out whether you need a license to run your Bakersfield company from home, check with the appropriate authorities.
You’ll need a seller’s permission if you want to sell items in Bakersfield, CA. This license costs nothing and is good for a year. On the City of Bakersfield website, there is an application form that you may use to request this permission.
No company can instantly make you wealthy. But being a wealthy entrepreneur in Bakersfield, CA, is not impossible. You may launch your own venture in the high-demand industries of food, dining, or coffee. These companies could be a smart way to generate money.
Contacting the local administration is necessary if you want to license a company in Bakersfield, CA. Your required license and payment details will be sent to you by them. Depending on the sort of enterprise you are running, business license fees in Bakersfield, CA vary.
In Bakersfield, CA, obtaining a tax identification number is surprisingly simple. Simply complete out the application on the IRS website. In Bakersfield, CA, you may get your tax identification number without paying anything in a short amount of time.
Creating an LLC on your own is possible if you reside in Bakersfield, CA. The application must be completed online at the Secretary of State’s website. As well as the information for the registered agent, including your name, address, and the kind of LLC.
Starting a business in Bakersfield is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, California has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Bakersfield, CA.