STARTING A SMALL BUSINESS
Business Resource Center
(For businesses locating within the city limits)
There are several key steps to starting a business in the City of San Diego. The steps may vary according to the type of business you intend to start, but the following 10 steps will give you a general idea. Note: Many of the following steps can be researched and accomplished by first visiting the respective web sites listed, rather than calling or visiting agency offices. For those business start-ups that do not have access to the Internet, you may visit any of the City's Community Service Centers or Public Libraries and get online.
1. Get Basic Information and Assistance
The process of starting a business can often be confusing. For this reason, the City of San Diego's Office of Small Business acts as an information clearinghouse for not only City programs, but also those of other agencies in the area. The office also provides small business troubleshooting for regulatory, permitting and licensing issues. For more information contact:
World Trade Center, 1250 Sixth Avenue, 10th Floor,
San Diego, CA 92101-4313
(619) 685-1390
The City of San Diego's Main Library provides significant resource materials, including information on market research, trademark and service marks, how-to-books on a variety of businesses and industries, etc. The Central Library also offers workshops on patent, trademark and copyright issues. For more information, contact:
820 “E” Street, San Diego, CA 92101
(619) 236-5800
2. Create a Business Plan
A business plan is like a roadmap; it shows you where you are in relation to where you want to be. Whether you believe in a business plan or not, starting a business involves many ideas that need to be documented and actions that need to be taken. Many businesses fail without a business plan, and furthermore, banks require one prior to being considered for a loan. Contact:
550 West C Street, Suite 550, San Diego, CA 92101, (619) 557-7272
3. Determine the Business Type
There is a classification system for business types in San Diego, which identifies a business type and determines many of the start-up requirements. Determine the business type from the list provided with the Business Tax Certificate application. Please note: it is important to follow most of the 10 key steps to starting a business before turning in the Business Tax Certificate application. The form is available from the Office of Small Business (listed above), the City's Community Service Centers and directly from the:
City of San Diego
1200 Third Ave., 1st floor lobby
San Diego, CA 92101
(619) 615-1500
Fax. (619) 236-7134
E-mail: btax@sandiego.gov
Business hours: Monday through Friday, 8:00 a.m. to 5:00 p.m.
4. Determine a Business Name
The name you choose for your business is very important. In addition to making sure that the Name describes your business clearly, you need to ensure that the name is not already being used. If the name you choose is anything other than your own legal surname, state law requires you to file a fictitious business name statement. Checking on the use of your business name and filing a fictitious business name statement can be done by contacting:
1600 Pacific Highway, Room 260, San Diego, CA 92101
(619) 237-0502
5. Determine the Legal Structure of the Business
Several legal structures exist in the state of California. Your choice of legal structure will affect your income taxes and personal liability. Most businesses start as a Sole Proprietorship or a Partnership and are legally the least complicated. Corporations and Limited Liability Companies must register with the Secretary of State. You may want to contact your own accountant or attorney for advice and assistance in determining the best legal structure for you and your business. For additional information contact:
Secretary of State at (916) 324-6769
IRS's Technical Services Division at (800) 829-1040
6. Select a Site and Determine Zoning Requirements
Determining zoning requirements prior to signing a lease or contract is imperative. You must check with the city 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 of the Home Occupation Regulations. You can obtain this information by contacting:
1222 First Ave., Third Floor, San Diego, CA 92101
Permits: (619) 446-5000
You can usually receive same-day information on the status of your location if you have the proposed business address and a description of the business when you contact:
Neighborhood Code Compliance at (619) 446-5000
7. Obtain Any Special Licenses and Permits
The business type chosen determines the licenses needed to operate a business legally. For a list of more than 200 regulated Occupations and Professional Services, contact:
State Department of Consumer Affairs at (800) 952-5210
For the list of Police Regulated Businesses within the City of San Diego, contact:
San Diego Police Licensing Division at (619) 531-2250
Businesses selling tangible personal property in the state of California must apply for a Seller's Permit/Resale Number by contacting:
1350 Front St., Room 5047, San Diego, CA 92101-3612
(619) 525-4526
8. Get Tax Information
Several types of taxes may be levied on businesses including income tax, employment tax and the City's Business Tax. For City taxes, contact:
City Treasurer's Office at (619) 615-1500
For state taxes, contact:
Franchise Tax Board at (800) 852-5711
For a copy of “Striking Gold in California,” which outlines state taxes for businesses, contact:
State Board of Equalization at (800) 400-7115
For federal tax information and a copy of the “Small Business Resource Guide,” an invaluable tool to help business owners understand the basics, contact:
Internal Revenue Service at (800) 829-1040
9. Apply for a Business Tax Certificate (License)
Anyone doing business in the City of San Diego for more than six days in one calendar year must have a business tax certificate. Home-based businesses, self-employed persons and independent contractors are also required to have a business tax certificate. You will need your business address, type of business and the approval of the Development Services Department (gathered during zoning and permitting stage). The applications can be obtained and filed at the following locations:
City of San Diego
1200 Third Ave., 1st floor lobby
San Diego, CA 92101
(619) 615-1500
Fax (619) 236-7134
E-mail: btax@sandiego.gov
Business hours: Monday through Friday, 8:00 a.m. to 5:00 p.m.
City of San Diego Community Service Centers:
Special Note: The City invests the majority of these funds collected from small businesses (with 12 or fewer employees) in a variety of small business assistance programs offered through the Office of Small Business.
10. Obtain Employer ID Numbers, If You Intend to Employ Staff
A whole new set of responsibilities arises when a business hires employees. Employers register as an employer, pay additional taxes, withhold, match and submit employee withholdings, must obtain worker's compensation insurance and adhere to employee eligibility regulations. Employer ID numbers can be obtained by completing form SS-4 from the:
Internal Revenue Service at (800) 829-3676
By following these key steps, the process should run more smoothly. If you do encounter obstacles with permitting, zoning, etc., contact the City of San Diego's Office of Small Business at (619) 685-1390. The office maintains a small business ombuds program, which is designed to provide trouble shooting for small businesses.
For more detailed information on the various agencies that can assist start-ups and existing businesses, refer to Business Start-Up Resources.
http://www.sannet.gov/economic-development/business-assistance /small-business