Anita Gore with the state Board of Equalization says more than 50 inspectors will be checking in with retail and service industry business throughout California including South Lake Tahoe and Vallejo.
"They actually walk door-to-door looking to see if businesses have the appropriate permits with the board and other licenses."
Gore says it's not a sting and they're not trying to catch business owners off-guard.
"We send letters to businesses prior to making our visit. About 30 days in advance is what we try to do so that businesses know that we're coming."
Gore says more than 3.5% of businesses operating in California don't have the appropriate permits or licenses. Not only does it cost the state money, Gore says it's unfair to other businesses that are playing by the rules.
Businesses that don't have the right paperwork will be told how to register with the state Board of Equalization.