§ 80265 Small Business Definition

Health and Safety Code·California

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Key Takeaways

•A small business is one that is owned and run by itself, not a big boss in its area.
•It must have 100 or fewer workers, including any connected businesses.
•It must make $10 million or less each year, on average, for the last three years.
•If it's a factory, it can also be a small business if it has 100 or fewer workers.

Example

A local bakery with 50 employees that makes $8 million a year.

This bakery is a small business because it's owned by itself, not too big in its area, has fewer than 100 workers, and makes less than $10 million a year.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 80265 Small Business Definition

“Small business” means an independently owned and operated business, that is not dominant in its field of operation, that, together with affiliates, has 100 or fewer employees, and that has average annual gross receipts of ten million dollars ($10,000,000) or less over the previous three years, or a business that is a manufacturer, as defined in Section 14837 of the Government Code, with 100 or fewer employees. (Added by Stats. 2022, Ch. 257, Sec. 2. (AB 2293) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 4 of Stats. 2022, Ch. 257.)

Last verified: January 24, 2026

Key Terms

small business employee fine in california operative january operation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 80265.

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Key Takeaways

Example

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Related Statutes

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