þ Step 1 – Develop Business Plan

A business plan is the first step to starting a successful business.  This plan will help you evaluate your idea, estimate costs, and determine the strengths and weaknesses of your proposal.  A business plan may also serve as a tool to help raise money and is usually required to apply for a loan to attract financial capital.

Tips for Success:

The Service Core of Retired Executives (SCORE) is an association of working and retired executives and business owners who donate their time and expertise as volunteer business counselors and provide confidential counseling and mentoring free of charge.

A SCORE counselor can provide important individual guidance during the development of your business.  Please visit www.losgatoschamber.com to schedule an appointment.

þ Step – 2 Determine Your Business Structure

It is important to determine the structure of your business for operating and business reporting purposes.  Will you operate your business as a sole proprietor, partnership (2 or more owners), or a corporation (1 or more stockholders/officers)?

If you are a sole proprietor, no formation documents are required to be filed with the Secretary of State.  It is optional for partnerships to file with the State.

If you are starting a corporation or a limited liability company, you must contact the California Secretary of State’s Office.  They can supply you with all the information and forms you need.

þ Step 3 – Location, Location, Location

Before signing a building/property lease or purchase agreement, contact the Town of Los Gatos Community Development Department at 408.354.6872 to determine the zoning of the site.  The Community Development Department will determine if your business is a permitted use for the location and if any special approvals are needed.

Tips for Success:

Working from home? You will need to obtain a Home Occupation Permit.  It is still recommended to review pertinent zoning information to ensure the proposed business activities are permitted.  

þ Step – 4 Register A Fictitious Name

If you create a name for your business that is different than your own legal name, you need to register the business name with the Santa Clara County Clerk’s Office. 

Also, public notices announcing your new business name must be posted for four weeks in the local newspaper to complete the registration process.

Tips for Success:

To make sure your business name doesn’t conflict with other businesses, you can check to see if it is in use within Santa Clara County by checking the Fictitious Business Name Database at www.clerkrecordersearch.org.

þ Step 5 – Tax Reporting

All businesses are required to file both state and federal tax returns.  Please contact the state Franchise Tax Board and the Internal Revenue Service to learn more about specific requirements.

Will you sell a product? The California Board of Equalization can assist you in determining whether you need a Seller’s Permit.  You may also be required to collect sales tax. To do so, the Board of Equalization will need to issue you a resale number in order to report that sales tax.

Whether self-employed or an employer with one or more employees, you must also pay Social Security Taxes.  Please contact the local Campbell office to answer any questions at 1.800.772.1213, or visit their office at 770 West Hamilton Avenue in Campbell.

þ Step – 6 Pay Your Business Tax (License)

A Town business license is required if a business is located within the Town limits, or if an agent of the business comes into Town to conduct business.  Business License Applications are available online. 

The license tax due can be determined based on the type of business activity. Those businesses which are based on retail sales, wholesale, manufacturing and/or jobbing have taxes based on a sliding scale. All other businesses have taxes based on flat fees as set forth in Town Code Sec. 14.20.115. Flat-fee based businesses are pro-rated, by quarter, from the date of application to the end of the year.

To view Town business permits click here.

þ Step 7 – Other Town & Agency Permits

Depending on the type of business, you may be required to obtain permits or licenses from County, State, or Federal agencies.  Please contact these individual agencies directly if applicable:

Alcohol Beverage Control (ABC):

No person may directly or indirectly on any pretense, sell, barter, charge for possession or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained the proper permit or license.

If you plan to serve alcohol please contact:

100 Paseo de San Antonio, #`119

San Jose, CA 95113

408.277.1200

California Department of Consumer Affairs:

Many professional businesses such as accountants, engineers, doctors, and dentists require a State license from California Department of Consumer Affairs. Businesses such as barbers, cosmetologist, security services, and auto repairs are also required to obtain a State license.  Please call to find out if you must register your business.

Import/Export Permit:

If your business involves the importing or exporting of products with other countries, you may need to obtain an Import/ Export Permit. Please contact the United States Customs Service at 415.782.9210

Restaurants and Food Vendors:

A health inspection is required for restaurants and food vendors.  Contact the Santa Clara County Environmental Health Department to arrange for an inspection, or to request information and advice regarding health and environmental safety issues.

If you plan to serve food please contact:

Santa Clara County Office of Environmental Health

1555 Berger Drive, Suite 300

San Jose, CA 95112-2716

408.918.3400

Retail and Wholesale Business Permits:

If your business will involve sales, you will need to obtain a Seller’s Permit from the State Board of Equalization.

If your business involves sales please contact:

100 Paseo de San Antonio, Room 307

San Jose. CA 95113

408.277.1231

Other Permits and Licenses:

To determine what other regional, state, and federal permits and licenses your business may need, call the State’s “CalGOLD Business Permits Made Simple” office at 916.322.7394

Child Care Center or Family Child Care Home License:

Licensing of all child care centers and family child care homes in California are required and can be obtained through the California Department of Social Services. 

If you plan on providing child care services please contact:

4030 Moorpark Avenue, Room 216

San Jose, CA 95113

408.277.1286

Contractor’s License:

Construction is one of the largest industries in California’s diverse economy.  The Contractors State License Board (CSLB) receives and processes applications for new licenses, additional classifications, changes of license records, and license renewals.  For an application for an original California contractor’s license click here.

þ Step 8 — Will You Have Employees?

If you hire employees be sure to register with the California Employment Department.  They will provide you with the necessary forms and answer any questions you may have regarding responsibilities.  As an employer, the State requires you to do the following:

§         withhold State income tax

§         withhold State disability insurance

§         pay unemployment tax

§         pay for any employment training costs

You must also register with the Internal Revenue Service (IRS) in order to receive an Employer Identification Number.  The IRS offers many services to new business owners and will provide a package of helpful information explaining the types of forms used and due dates for these forms.

As an employer, you are required to carry worker’s compensation insurance. You may obtain this insurance through your own insurance agent or the State Compensation Insurance Fund of California (SCIF).  The SCIF is a non-profit, public enterprise fund that operates like a mutual insurance carrier.  Please visit SCIF website for more information.

Tips for Success:

The Silicon Valley Workforce Investment Network can connect you with qualified employees, find out about business opportunities, research state and federal regulations, explore the state’s economic development services, and much more.

þ Step 9 – Get Connected In Los Gatos

Business necessities.

Small Business Resources:

Los Gatos Chamber of Commerce:
Become part of a vibrant business community by join the Los Gatos Chamber of Commerce.  Members enjoy numerous network opportunities, coordinated marketing opportunities, and access to many small business assistance services.  For more information please call 408.354.9300.

West Valley Collection and Recycling  
To begin service, ask questions about the services available, or submit a service issue, call West Valley Collection and Recycling at (408) 283-9250. 

Utilities:

Pacific Gas & Electric (PG&E):

Gas and electric services in Los Gatos are provided by Pacific Gas and Electric.  For more information contact PG&E at 800.468.4743.

San Jose Water District (SJWD):

San Jose Water Company is an established utility that services many Silicon Valley cities. Full service water utility operations are currently provided to the cities of San Jose, Los Gatos, Monte Sereno, Saratoga, Campbell and Cupertino through systems acquired under lease, purchase or franchise agreements. For more information contact San Jose Water District Customer Service at 408.279.7900.

West Valley Sanitation District:

The West Valley Sanitation District provides wastewater collection, treatment, and disposal services.