Steps to Starting a Business

A viable business plan is a road map to creating a successful business.

Some critical steps include:

• Identifying the industry.
• Evaluate business and personal goals.
• Create a comprehensive and detailed plan for you, potential investors, and loan applications.

Resources

The following organizations maybe able to help build a business plan.

• Small Business Development Center
• Small Business Administration

• Decide what form of business entity to establish. This determines which income tax return form you have to file. Examples include sole proprietorship, corporation, S corporation or LLC. Visit the Internal Revenue Service (IRS) website for more information.
• File forms with California Secretary of State.

• Factors to consider include zoning regulations, demographics and infrastructure. This may be a part of your business plan.
• The Sacramento County Parcel Viewer provides jurisdiction, land use and other specific information about parcels.
• Research infrastructure, planning and zoning restrictions prior to signing a lease or conducting a home-based business.
• Businesses located in incorporated city should contact their local city planning and zoning jurisdiction.

IMPORTANT: contact Planning and Zoning-Sacramento County prior to solidifying a business location.

SACRAMENTO COUNTY

• For free and non-regulatory assistance on various county and environmental permitting, contact the Business Environmental Resource Center (BERC)-Sacramento County.
• Additional permitting for businesses in Sacramento County maybe required based on type of industry.
• Environmental Management Department-Sacramento County

STATE OF CALIFORNIA

• CalGOLD database has information on business permits, licenses, and registration requirements from all government levels.
• Department of Consumer Affairs lists more than 200 regulated occupations and services.

OTHER PERMITTING

• Local fire jurisdiction may require additional permitting for fire inspection. Sacramento Metropolitan Fire District regulates many Sacramento County jurisdictions including the cities of Rancho Cordova and Citrus Heights. Fire Districts can be located on the County of Sacramento's parcel viewer.

Secure Financing

• It is recommended to have enough capital investment for start-up costs and an additional six months of operations. Commercial business loans maybe available.

Resources

The following organizations may be able to assist.

• Small Business Development Center
• Small Business Administration

Ficticious Business Name

Conducting business under any other name besides the legal last name of the owner requires a fictitious business name filed with the Department of Finance- Sacramento County (incorporated and unincorporated).

Apply for A Business License

• A business license is required for all types of businesses within unincorporated Sacramento County (includes internet and home-based).
• Types of business licenses are available at the Department of Finance Tax Collecting and Business Licensing division-Sacramento County.
• Obtain other permitting as required. Permitting for businesses-Sacramento County.
• Businesses located in incorporated city should contact their respective city business licensing.

Federal Tax ID (EIN)

• Federal Tax ID number or Employer Identification Number (EIN) is comparable to a social security number for a business. Obtain an EIN by filling out FORM SS-4 online.

Employee Development Department-EDD

• Employers are required to electronically submit tax returns, wage reports and payroll tax deposits to Employment Development Department (EDD)-State of California.
• EDD provides an annual publication California Employers Guide covering broad topics on how to succeed in business.

Workers Comp Insurance

• Prior to hiring employees, it is a legal obligation to invest in workers comp insurance. This can be accomplished through an insurance broker or the State of California state fund. Grants and incentives maybe available to low income start ups from the state workers comp fund.

Employee Rights

• Internal Revenue Service publication for work classifications and rights of employees.

General Information

• Franchise Tax Board requires an annual Business Income Tax Statement (accountants may be able to assist)
• Employers and Self-employed individuals must pay Social Security tax.

Assessor's Office-Sacramento County

• Personal property or fixtures held or used for business purposes maybe subject to property tax. For more information visit Sacramento County Assessor's Office

Board of Equalization-State of California

• Tangible property sold in California is subject to sales tax. Retailers must apply for a Sellers permit/resale number with the State Board of Equalization.