Freelancing - Do I need a business license ?

Question

I just started out doing freelance web/graphic design. I live in San Diego, CA and everywhere I read, I get mixed information. Some say web/graphic designers do not need business licenses, and others said you absolutely have to.

Here is my questions:

1. Do I need a license in San Diego, CA ?

2. I don't want to use my own name, but would rather use a fictitious name. I already went and got a DBA. Can I use this, or do I have to actually form a company or corporation to make this fictitious name valid ?

3. I would like to open a business account. I just want to have a separate account for all money coming in from my design jobs. Should I wait rather until I have a formal company or corporation before opening a business account, or should I go ahead and open it.

4. I want to be legal, and pay my taxes, but i don't want to start a business and file papers and licenses that is not needed and then get taxed for unneeded stuff.

Thanks guys !! All advise welcome!

Answer 1

IF it's a business and not a hobby, yes.

If you use a fictitious name, it's a business and you need one, yes.

If you have a bank account with the business name, then yes, you need a license. And yes you do need to pay taxes.

Hobbies aren't required to have a license, but you've listed enough things to indicate that it's definately a 'business' and will need one.