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
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:City of San Diego Public Library 820 E Street, San Diego, CA 92101 (619) 236-5800 website: www.sandiego.gov/public-library/
The U.S. Small Business Administration has a Business Resource Center which provides a one-stop location for free access to a variety of information, education and training designed to help entrepreneurs start, operate and grow their business. In addition, there is on-site free counseling provided by the Service Corps of Retired Executives (SCORE). For more information contact: U.S. Small Business Administration 550 West “C” Street, Suite 550, San Diego, CA 92101
(619) 557-7272 website: http://www.sba.gov/localresources/district/ca/sandiego/index.html
The City of San Diego’s Office of Small Business acts as an information clearinghouse for City programs and those of other agencies in the area. The information can be requested via e-mail or telephone or can be accessed on-line or by visiting the office. Seminars such as the ABC’s of Starting, Growing, and Financing Your Small Business, are offered periodically. Additionally, the Small Business Advocate can assist you with City zoning, permitting and regulatory challenges.City of San Diego, Office of Small Business 1200 Third Avenue, Suite 1400, San Diego, CA 92101
(619)236-6700 e-mail: sdbusiness@sandiego.gov
website: www.sandiego.gov/economic-development/business-assistance/small-business/
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:U.S Small Business Administration, Service Corps of Retired Executives 550 West C Street, Suite 550,
San Diego, CA 92101 (619) 557-7272 website: http://www.sba.gov/smallbusinessplanner/index.html
3. Determine a Business Name
The name you choose for your business is very important. If the name you choose is your own legal surname and a one-word description (such as John Smith Roofing) then you are not required to register a fictitious business name. If you choose a business name that does not meet these parameters (such as JS Expert Roofing) and your business is not registered with the state then state law requires you to file a fictitious business name statement with the County of San Diego. Please note that this statement does not protect the business name.
County of San Diego, Assessor/Recorder/County Clerk’s Office 1600 Pacific Highway, Room 260, San Diego, CA 92101 (619) 237-0502
website: http://arcc.co.san-diego.ca.us/arcc/services/fbn_info.aspx
4. 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 General Partnership, Liability Partnerships Secretary of State. You are strongly advised to contact your own accountant or attorney for advice and assistance in determining the best legal structure for you and your business. California Business Portal (916) 324-6769
website: http://www.sos.ca.gov/business/
IRS’S Technical Services Division(800) 829-1040 website: www.irs.treas.gov
5. Determine the Business Activity Type
There is a classification system for business activity types in San Diego, which identifies a business activity and determines many of the start-up requirements and where the business can be located. Determine the general business activity type from the list below. The same list is also provided with the Business Tax Certificate application.
Agriculture (11) Transportation and Warehousing (48-49) Educational Services (61) Mining (21) Information Services (51) Health Care/Social Assistance (62) Utilities (22) Finance and Insurance (52) Arts/Entertainment/Recreation (71) Construction (23) Real Estate/Rental/Leasing (53) Accommodation/Foodservices (72) Manufacturing (31-33) Professional/Scientific/Technical (54) Other Services (81) Wholesale (42) Management Services (55) Public Administration (92) Retail (44-45) Administrative Support (56)
For more information on business activity type contact: City Treasurer’s Office 1200 Third Ave., First Floor, San Diego, CA 92101
(619) 615-1500 website: www.sandiego.gov/treasurer/index.shtml#btax
6. Select a Site and Determine Zoning and Site Permit 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. 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:
City’s Development Services Department
1222 First Avenue, Third Floor, San Diego, CA 92101
website: www.sandiego.gov/development-services/smallbus
If operating from home, you must follow the requirements for Home Occupations. You can obtain this information by contacting: Neighborhood Code Compliance
(619) 236-5500 website: http://www.sandiego.gov/nccd/zoning/home.shtml
7. Obtain Any Special Licenses and 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 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.
CalGOLD (916) 322-7394 website: http://www.calgold.ca.gov
For a list of more than 200 regulated Occupations and Professional Services, contact:
State Department of Consumer Affairs
(800) 952-5210 website: http://www.dca.ca.gov
For the list of Police Regulated Business within the City of San Diego, contact:San Diego Police Licensing Division
(619) 531-2250
Businesses selling tangible personal property in the state of California must apply for Seller’s Permit/Resale Number
State Board of Equalization 1350 Front Street, Room 5047, San Diego, CA 92101
(619) 525-4526 website: http://www.boe.ca.gov
Businesses engaged in selling goods by weight or volume must register the devices with the County Agriculture, Weights and Measures Office. Permits must usually be obtained by: import/export businesses, agricultural-related production, and businesses using pesticides.County -
Agricultural, Weights and Measures Department
5555 Overland Ave., Bldg 3
San Diego, CA 92122-1295
(858) 694-2739 http://www.sdcawm.org
Business engaged in: selling or handling food products, operating a pool or spa, handling hazardous materials, underground storage tanks, medical wastes, x-ray equipment, or waste handling must contact the Department of Environmental Health at the County.
County - Environmental Health
1255 Imperial Ave., Third Floor
San Diego, CA 92101
Tel: (619) 338-2222, Fax: (619) 338-2377
www.sdcdeh.org
Other permits and licenses may also be required.
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 tax information contact:
City Treasurer’s Office
(619) 615-1500 website: www.sandiego.gov
For state taxes visit the California Tax Information Center that is sponsored by California’s tax agencies (Board of Equalization, Employment Development Department, and Franchise Tax Board) and the IRS. California Tax Information Center website: http://www.taxes.ca.gov/
For a copy of “Striking Gold in California”, which outlines state taxes for businesses, contact: State Board of Equalization (800) 400-7115 website: www.taxes.ca.gov/doingbus.html
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 (800) 829-1040 website: http://www.irs.treas.gov
9. Employer Responsibilities
A whole new set of responsibilities arises when a business hires employees. Employers must register as an employer and obtain a federal Employer Identification Number (EIN), pay additional taxes, withhold, match and submit employee withholdings, must obtain worker’s compensation insurance and adhere to employee eligibility regulations.
The EIN, also known as a Federal Tax Identification Number, is a nine-digit number that the IRS assigns to business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities. Federal Employer ID numbers can be obtained by completing form SS-4 on-line or calling:
Internal Revenue Service (800) 829-4933 website: http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
Get information on state requirements, taxes and services for employers by contacting: Employment Development Department: website: http://www.edd.ca.gov/employer.htm
10. 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. The applications can be obtained and filed at the following locations or downloaded from the City’s website:
City Treasurer’s Office, Business Tax Division
1200 Third Ave., First floor, San Diego, CA 92101
(619) 615-1500 website: http://www.sandiego.gov/treasurer/index.shtml#btax
By following these key steps, with the process, or with permitting, zoning, etc., contact the City of San Diego’s Office of Small Business. The office maintains a small business advocacy/ombuds program, which is designed to provide zoning, permit, and regulatory assistance to small businesses.
City of San Diego, Office of Small Business 600 B Street, Fourth Floor, San Diego, CA 92101
(619) 533-4233 e-mail: sdbusiness@sandiego.gov
website: www.sandiego.gov/economic-development/business-assistance/small-business/
Additional Resources and Information.
Financial Resources
Several financial resources exist for small businesses in San Diego. However, loans are not generally available to start-ups. Most loan programs require that businesses have at least one year of history.
Loan Programs
CDC Small Business Finance Corporation
Tel: (619) 291-3594, Fax: (619) 291-6954
California Southern Small Business Development Corp./State of California Loan Guarantee Program
Tel: (619) 232-7771, Fax: (619) 232-6743
Micro Loans
ACCION San Diego (requires at least six months of business operation)
Tel: (619) 685-1380, Fax: (619) 685-1470
www.accion.org
Business Loans
City of San Diego, Community & Economic Development Dept. Business Finance Section
600 B Street, 4th Floor
San Diego, CA 92101
(619) 533-7408
http://www.sandiego.gov/economic-development/business-assistance/finance/index.shtml
Matching Grant Programs
Storefront Improvement Program
City of San Diego
Office of Small Business
Tel: (619) 685-1390, Fax (619) 685-1391
http://www.sandiego.gov/economic-development/business-assistance/small-business/storefront.shtml
Certification and Contracting Opportunities
Certification for City Contracts
City of San Diego Contract Services,
Equal Opportunity Contracting Program
1010 Second Ave., 5th Floor
San Diego, CA 92101
Tel: (619) 533-4464, Fax: (619) 533-4474
http://www.sandiego.gov/eoc/index.shtml
State Certification as a Small Business
Office of Small Business Certification & Resources,
California Department of General Services
(916) 322-5060
www.osmb.dgs.ca.gov/
Small Business Registration
Small Business Administration
550 West C Street, Suite 550
San Diego, CA 92101
(619) 557-7250
www.sba.gov
Contracting with City of San Diego
City of San Diego Purchasing Division
1200 Third Ave., Suite 200
San Diego, CA 92101-4195
Tel: (619) 236-6000, Fax: (619) 533-3236
http://www.sandiego.gov/bids-contracts/
Contracting Opportunities Center
Southwestern College
4007 Camino Del Rio South, Suite 210
San Diego, CA 92108
Tel: (619) 285-7020, Fax: (619) 285-7030
www.ptac-sandiego.org
County of San Diego Resources
County Property Tax Information
Assessor, Recorder, County Clerk
1600 Pacific Highway, Room 103
San Diego, CA 92101
(619) 236-3771
http://sdpublic.sdcounty.ca.gov/portal/page?_pageid=93,298361&_dad=portal&_schema=PORTAL
County Zoning Information
County Department of Planning & Land Use
5201 Ruffin Road, Suite B
San Diego, CA 92123
(858) 565-5981
www.sdcounty.ca.gov/dplu/
County Air Pollution Control
County Small Business Assistance Program
9150 Chesapeake Drive
San Diego, CA 92123
Tel: (858) 650-4700, Fax: (858) 650-4659
http://www.sdapcd.org/comply/SBA/sba.html
State of California Resources
Many City of San Diego businesses will need to work with state agencies if they intend to
incorporate their business, sell alcohol and other goods, hire employees, etc.
State Employment Development Department
3110 Camino Del Rio South, Suite 100
San Diego, CA 92108
Tel: (619) 516-1920, Fax: (619) 516-1930
www.edd.ca.gov
State Worker's Compensation
State Compensation Insurance Fund
9444 Waples St.
San Diego, CA 92121
(858) 552-7000
www.scif.com
State Alcohol Sales Licensing
State Alcoholic Beverage Control
1350 Front St., Suite 5056
San Diego, CA 92101
Tel: (619) 525-4064, Fax: (619) 231-1171
www.abc.ca.gov
State Incorporation Information
California Secretary of State
1350 Front St., Suite 2060
San Diego, CA 92101
(619) 525-4113
www.ss.ca.gov
U.S. Federal Government Resources
The federal government provides a host of pertinent information and services to small businesses,
including consulting services, tax information, export information and wage and hour information.
Income Tax Information
Internal Revenue Service
880 Front St., First Floor
San Diego, CA 92188
Information: (800) 829-1040
Forms and Publications: (800) 829-3676
www.irs.treas.gov
Export Information
Department of Commerce
6363 Greenwich Drive, Suite 230
San Diego, CA 92122-3939
(619) 557-5399
www.doc.gov
Import & Customs
Bureau of Customs & Border Protection
Airport and Seaport (619) 557-5370
Otay Mesa Border (619) 661-3281
Tecate Border (619) 478-5356
http://www.cbp.gov/xp/cgov/trade/
Wage & Hour Information
U.S. Department of Labor
5675 Ruffin Road, Suite 310
San Diego, CA 92123-5378
(619) 557-5606
www.dol.gov
Social Security Information
Social Security Administration
1333 Front St.
San Diego, CA 92101
Tel: (800) 772-1213
www.ssa.gov
Internet Business
Mail or Telephone Order Business
Federal Trade Commission
1-877-382-4357
www.ftc.gov/
General Information, Research and Networking
San Diego Regional Chamber of Commerce
402 W. Broadway, Suite 1000
San Diego, CA 92101
Tel: (619) 544-1300, Fax: (619) 744-7481
www.sdchamber.org
Demographics
San Diego Association of Governments
401 “B” Street, Suite 800
San Diego, CA 92101
Tel: (619) 595-5353, Fax: (619) 595-5305
www.sandag.org
Business Improvement Districts
BID Council
121 Broadway, Suite 501
San Diego, CA 92101
Tel: (619) 239-2437, Fax: (619) 239-0714
http://www.bidcouncil.org/
Health Care Program Information
San Diego Business Healthcare Connection
1551 Fourth Avenue, Suite 440
San Diego, CA 92101
Tel: (619) 231-0338
http://www.sdbhc.org/
Small Business Consulting
Southwestern College -- Small Business
Development & International Trade Center
900 Otay Lakes Road, Suite 1600
Chula Vista, CA 91910
Tel: (619) 482-6391, Fax: (619) 482-6402
www.sbditc.org
Fermanian Business Center
Point Loma Nazarene University
3900 Lomaland Drive
San Diego, CA 92106
(619) 849-2564
http://www.pointloma.edu/Fermanian.htm
Entrepreneur Clinic – USD Law School
University of San Diego
5998 Alcala Park
San Diego, CA 92110-7425
(619) 260-7470
Food & Beverage Association of S.D. County
3110 Camino Del Rio South, Suite 315
San Diego, CA 92108
(619) 228-2291 Fax: (619) 228-2297
http://www.foodnbeverage.org/