I think California makes it relatively easy to get set up as a business.  Like a lot of people have said, it makes sense, if you're planning to be in business for the long term to act as professionally as possible.  Why not spend the $800 a year and set up an LLC....it makes getting licensed and bank accounts a snap and offers you a good amount of personal protection against lawsuits.

Pay Taxes then California and the United States will consider you a business!

If you put yourself out there in the world as a business, then the state will consider you a business. But, in terms of how you deal with the money you make from your business on your taxes, it will depend on the business form you take (e.g., sole proprietor, LLC, C-Corp, etc.). So, in order to answer your question, we would need to know why this matters to you.   Also, in terms of getting a business bank account, most banks will ask for proof of you being a business. This proof is paperwork from the state which could be your DBA (doing business as) paperwork, your LLC filings, a tax id, etc.   You may want to consider looking to the California Business Portal - http://www.calbusiness.ca.gov/cedpeybsb.asp. I think you should find the answers you're looking for there.   ~~~~~~~~~~~~

Jason, You don't say why you want to be considered a business. If it is for tax purposes, then if you make ANY profit from your business, you are considered a business, no matter what you have or have not filed. If it is to give your activities legitimacy in the eyes of your clients, that is a whole different issue. MaryAnnBusiness Plan MasterStart and Finance Your Business Now ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Hi JasonMaples, If you haven't already, you should take a look at Business.gov's Start a Business Guide. It provides easy-to-follow steps you should go through to start your business. You will need to register your business with the California State government, get a tax ID number, register for state and local taxes, and obtain permits and licenses, among others Here is the link to the California Tax Service Center that you should check out. Please also feel free to use the Permit Me Tool to generate a quick list of licenses and permits you'll need based on your state and industry. I'm not sure what kind of business you are planning to start, so I just plugged in California and General Licensing and got this list of licenses and permits. If you have any more questions, feel free to ask! We have a lot of members here who are willing to help.