Checklist for Starting a Business

• OK to have a post office box as well, but you will have to have a physical location.

• Sole Proprietorship/Partnership/LLC/Corporation (No formation documents are required to be filed with the Secretary of State for Sole Proprietorships. Other legal structures require formation documents with the Secretary of State: http://www.sos.ca.gov/business/be/forms.htm)
• Have legal documents drawn up as necessary (Partnership Agreement)
• Trademarks/Patents/Proprietary information… Your local SBDC is a good resource
• Have a lawyer on your team before you need them
• Read more here: http://business.ca.gov/StartaBusiness/DefiningaBusiness.aspx
• Business Structure and Tax Implications: http://www.sba.gov/content/business-structure-and-tax-implications

Business Planning

To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well-thought-out business plan that will help you reach these goals. The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

• Your local SBDC offers low cost business training and business mentoring. Locate them by zip code here: www.asbdc-us.org
• The SBA website has some terrific tools including this Small Business Planner.

• Needed if the company name is different than your own. Required before you can open a business checking account.
• Obtained through county government. Go to your county’s website. If you don’t see Ficticious Name, look for business services. Counties vary, but you usually pay a fee and fill out some paperwork to file. They give you a list of approved paper and you pay another fee to run the notice in the paper. They will send you a packet, or you can pick one up.

• Determining zoning requirements prior to signing a lease or contract is imperative. You must check with your municipality to see if the type of business you plan to operate is legal in the desired location. If operating from home, you must follow the requirements for Home Occupations, (if any in your municipality)

• City Hall - Depends on type of business. $40.00 and up depending on number of employees.
• Usually needed as soon as you begin trade in that municipality, but check your municipal code online.
• Home Occupation Permit: May be required by city if the business is conducted out of your home.

• www.boe.ca.gov
• Frequently needed to buy wholesale
• Needed for most sales in California, and many services
• If you have a Sellers Permit you don’t have to pay sales tax on items you are reselling (and charging sales tax).

Special licenses or permits

The business activity type chosen determines the licenses and permits needed to operate a business legally. Some of the key contacts are listed below.

• The CalGOLD database (www.calgold.ca.gov) provides detailed information on the business permit, license and registration requirements from all levels of government. The information includes a description of the requirement, the name, address, and telephone number of the agency, and frequently, a direct link to that agency's Internet web pages. The information identified is specific to the type of business and its location in California.
• For a list of more than 200 regulated Occupations and Professional Services, contact:

State Department of Consumer Affair
(800) 952-5210 website: www.dca.ca.gov

• For the list of Police Regulated Business contact your local police department.

• For federal tax information and a copy of the “Small Business Resource Guide” an invaluable tool to help business owners understand the basics contact: Phone (800) 829-1040 http://www.irs.treas.gov
• "Do I Need an EIN?" - Article from the IRS: http://www.irs.gov/businesses/small/article/0,,id=97872,00.html

• State tax information. http://www.taxes.ca.gov

• Federal Tax ID #, the Social Security # for your Business (www.irs.gov)  Fill out form SS-4
• Get an “Employer Guide” from the EDD (http://www.edd.ca.gov/pdf_pub_ctr/de44.pdf)
• Workers Comp Insurance…MUST have it before hire employees (your insurance agent or State Fund
• Know the difference between employees and contractors. (http://www.irs.gov/publications/p15a/ar02.html)
• There is a nice A-Z guide here: http://northcoastsbdc.org/hiring

• Liability and Property Insurance, maybe others. Ask your insurer, or check the phone book.

• ALL expenses and income need to be tracked. If possible set up a separate checking account.
• Set up Basic Bookkeeping Procedures.
• A bookkeeper or accountant is a great investment. Questions to answer include;
  • What to do with money coming in
  • How to chart money going out
  • What to be tracking daily/weekly/monthly/quarterly

Financing Tips

Every business needs capital at some point to start up or expand. Typically this comes from savings, home equity, or friends and family.

The next most frequent source of funding is some kind of business loan. If you are considering a business loan it is a good practice to call the lender early and get their input. A U.S Small Business Association guaranteed loan funds come through local lenders too so you will learn which of these may be available to you. California has a guaranteed loan fund you can find out about here: http://bth.ca.gov/sblgp.htm. Most lenders want you to be successful and will be very clear what their requirements and timelines are. Start inquiring with your own bank or credit union. If they do not do commercial business loans they will know who the lenders are that do in your community.

• Here is a directory of California Small Business Loans: http://www.businessloanfunds.com/california
• Generally you will need some sort of business plan (see Business Planning above) to get a business loan, and the lenders you talk to can help you ensure you include the information they need. The U.S. Small Business Association has a great website with tips and tools on how to write a good business plan: http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/writing-business-plan

Contact your local SBDC for workshops and additional help with this.

Technology/Green Resources

• CA Innovation Hub Initiative: http://business.ca.gov/Programs/Innovation.aspx. Serves to assist in stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs.
• Database of State Incentives for Renewables & Efficiency (DSIRE) - http://www.dsireusa.org/incentives/index.cfm?state=CA
• Rebates and Incentives from CoolCalifornia.org: http://www.coolcalifornia.org/small-business-financial-resources

Government Contracting

• California Department of General Services. Central location for businesses wanting to do business with the State of California. Information about minority certification etc. "How to Do Business With California State Government" Brochure:  http://www.documents.dgs.ca.gov/pd/smallbus/HowtodobusEP.pdf
• Contracting opportunities listed by the U.S. Small Business Association: http://www.sba.gov/category/navigation-structure/contracting/contracting-opportunities

General Business Resources

• California Business Portal: www.business.ca.gov
• Small Business Administration: Great site for business information, www.sba.gov.
• Federal Government Business Portal: Another great start up guide, www.business.gov/start/start-a-business.html
• Fact sheet from the SBA Office of International Trade that explains the six-step process to begin exporting.

Resources for Veterans

• U.S. SBA "Veteran & Service-Disabled Veteran Owned web portal here: http://www.sba.gov/content/veteran-service-disabled-veteran-owned
• California has a nice program for veterans which helps you land government contracts: http://www.calvet.ca.gov/VetServices/DVBE.aspx
• The Veterans Business Outreach Center has support and information for veterans starting business in California; www.vboc-ca.org/

Resources for Women

• The Women's Business Enterprise National Council has information about women-owned businesses and certification: www.wbenc.org/
• The National Association of Women Business Owners (NAWBO): www.nawbo.org
• Small Business Grants and Loans for Women Business Owners: http://www.womanowned.com/growing/funding/opportunities.aspx

Resources for Minorities

• Minority Owned Businesses, U.S. SBA: http://www.sba.gov/content/minority-owned-businesses
• 8(a) Business Development, U.S. SBA: http://www.sba.gov/content/8a-business-development