I mean do i need Business license from state gov to run hosting business?
I have setup an LLC for this business.

no, you just need to claim taxes each year like the rest of us.

Its best if you do open up a license. However its not important until you start to get serious and if your able to get to a point where your profiting a good amount.

However its best to get a license. It establishes your self as a official business and protects your business name in the state of CA.

Thanks.

Consult your local county or city regulations. Most likely they will expect you to have a business license and a fictitious name statement on file. In my county I also had to get a 'home use permit'.