Starting a Business
In Redwood City, we strive to maintain a business-friendly environment for businesses of all size - from the largest high-tech world headquarters to the smallest “mom & pop” storefront. Businesses throughout the size spectrum are important to the health and prosperity of our community.
Visit the links on this page for the full range of services provided to businesses (and prospective businesses) by Redwood City, the State of California, and other agencies. The State of California maintains a database of all technical assistance providers at their SCALE page.
|
BEFORE YOU SIGN A LEASE |
|
|
Create a Business Plan. Creating a business plan will help you organize your thoughts and get you started on the right track for business success. If you plan to get financing for building out a location, buying initial inventory or paying professionals to help you with building permits, you will need a business plan. Even if you don’t need financing, a business plan can help you estimate what kind of funding you need for startup and operational costs, based on your legal entity, preferred location, marketing plan, etc. Once you create your plan, it is a living document – you should use it and update it as you do business. |
|
|
Get Necessary Professional Licenses. Some professions require a state business license. These licensing agencies not only cover professional training but also are often responsible for regulating health and safety aspects at licensed businesses. |
|
|
Choose a Business Legal Structure. LLCs can be a good way to protect your assets, but they are not always the best legal entity option for small entrepreneurs. As you prepare to do business, consider meeting with a lawyer, a CPA or another advisor to understand what different legal structures mean for your taxes, your risk, and your ability to grow. |
|
|
Register the Business. If you choose an LLC or corporation structure, you will need to file paperwork with the California Secretary of State and with FinCEN. If you choose a sole proprietorship or partnership, skip this step. |
|
|
Register a Fictitious Business Name. You need a Fictitious Business Name statement (aka DBA, “doing business as”) if your business is operating under a different name than your legal entity, e.g. your name is Barbara Smith and you sell as B’s Cakes, or your business is DENT LLC and you operate a business named Empathy Inc. To get a Fictitious Business Name statement, you will apply to register the name with the San Mateo County Clerk-Recorder and advertise the name in a newspaper for 30 days before it will be issued. |
|
|
Get a Business Bank Account and Start Building Business Credit. Keeping your personal finances separate from your business finances is critical. You must have your business entity set up and registered before you can get a business bank account, as the bank or credit union will verify your documents before setting up the account. Establishing a business banking relationship and getting a DUNS number will make it easier to take loans and other forms of credit when needed. |
|
|
IDENTIFY YOUR LOCATION |
|
|
Make a Short List of Requirements. What are must-haves and what are nice-to-haves? What size space do you need? How much parking do you need? When do you plan to open and how much time are you allowing for buildout? Making a short list of your space, amenity, and cost requirements will help you search for sites more effectively. |
|
|
Examine Zoning & Planning Requirements. You are limited in what you can do in which place, according to the city Zoning Code and the type of building. Do NOT sign a lease until you are sure you can do what you want to do in the location you have chosen! If you are planning to work from home, also check to make sure that what you are planning is allowed to do as a home-based business. If you rent, you may also need landlord approval. If your desired location requires building, utility, or accessibility upgrades, this is a good time to hire a licensed team to investigate scale, costs and timeline, and to update your business plan. The costs of these upgrades should be considered in negotiating your lease. Finally, start planning ahead for signage! Many business owners put this off, but signs are a critical part of sharing your business and they require both Planning and Building approval. |
|
|
Negotiate the Lease. You may begin lease negotiations after you are sure the location suits your needs. Business owners and landlords usually make lease arrangements that recognize it takes time to have all permits and licenses in place. Different businesses require different licenses across multiple agencies. You may also negotiate the expected cost of making Improvements. |
|
|
Get Necessary Planning, Engineering and/or Building Permits. If you plan to make any architectural or structural changes to a building for your business (also known as “tenant improvements”, you will likely need to get several permits from the City of Redwood City to ensure that the vision you have is compliant with the California Building Standards Code and other local codes. |
|
|
COMPLETE YOUR BUSINESS PERMITTING AND REGISTRATION |
|
|
Get your California Seller’s Permit. This permit is required for all businesses who collect sales tax. Sales tax that you collect must be remitted to the California Department of Tax and Fee Administration on a quarterly basis. |
|
|
Get Necessary Health Permits. If you operate a business involving food, body art, tobacco, massage, or pools, you will also need a health permit to ensure you are following safe practices. |
San Mateo County Environmental Health |
|
Register with the California Employment Development Department. If you have even one employee, it is necessary to register with the California EDD to ensure you are properly withholding all payroll taxes. All workers are considered employees unless proven otherwise. |
|
|
Get an Employer Identification Number. If you are operating as anything other than a sole proprietorship, you’ll need an EIN to be able to file taxes. Even sole proprietors can and should get an EIN to protect their Social Security Number. |
|
|
Get a business license and other local permits. A business license is required to operate in the City of Redwood City for all businesses except Family Child Care Providers, who are exempt via California state law. All businesses operating in Redwood City, even temporarily, should have a business license. Non-profit organizations and some select other businesses are exempt from the business license tax, but should register so that they can stay up-to-date on Redwood City programs and policies. Some types of businesses, such as massage establishments or food trucks, are required to get additional local permits, as well. |
|
|
DO BUSINESS |
|
|
Join the Chamber of Commerce. It can be a lot to run a business and advocate for your business. The Chamber of Commerce is a great resource. |
|
|
Market your Business. The best time to market your business is all the time. Begin to implement your marketing plan from your business plan and adjust as needed. If you need support, take advantage of the resources in “Create a Business Plan.” |
|
|
Remit your Taxes. Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. |
|