Ten Steps to Start Your Business

WHAT TO INCLUDE IN YOUR BUSINESS PLAN

Your business plan communicates what your business does, your vision for the future, and the steps you will take to reach those objectives. Generally, the business plan should include:

1. An executive summary
2. A marketing plan
3. An operations plan
4. The proposed organizational structure
5. Financial Projections

Your developed business plan should also include the following:

1. The legal structure of your business

   You have probably heard the terms Sole proprietorship, General Partnership, Limited partnership, and Type C or S Corporation. The determination to form a company under a particular structure has much to do with the business activity, location, and organization. Information about each structure can be found at the California Secretary of State website:   www.sos.ca.gov.

   Since the legal structure of the business will dictate many of the entity’s operational functions, and tax liability, entrepreneurs are encouraged to seek legal advice when considering these choices. More information can be found at:   www.Business.USA.gov.

2. The business name

   Any business must register its name with the California Secretary of State’s office. Information on searching   name availability and   filing requirements can be found on the   Secretary of State website.

HELP WITH BUSINESS PLAN TEMPLATES

• North Coast SCORE offers an online business plan template that includes advice and tips for success. The plan, along with many helpful templates may be found at:   www.nortcoast.score.org
• Northeastern University Guide to Writing a Business Plan

GET ORGANIZED

Here are a few considerations for entrepreneurs seeking financing:

1. Project Costs

   Your “project” includes everything needed to open for business. Building, leasing costs, inventory, equipment, vehicles, marketing, etc. These details should be outlined in the business plan.

2. Collateral

   Do you have cash or other assets that you will be investing in your business? Generally speaking, lenders like to see some “owner-participation” with regards to financing. This demonstrates a commitment to the business and its success.

   Simply put, equity in the neighborhood of 20 – 30% is generally requested by lenders. If total project costs are equal to $150,000, then an owner should expect to contribute around $30,000-$45,000 in cash and/or assets.

3. Pre-application

   Lenders often cite that applications are denied simply because they are not complete, or the prospective borrower did not fully understand application requirements.
   
   

OBTAINING FINANCING FOR YOUR BUSINESS

When you are ready to pursue financing, you will want to visit our  Finance your Growth page for a complete list of banks, credit union, alternative lenders and angel investors/venture capital.

EDB FINANCING PROGRAMS

You will also want to check out  alternative loan financing available through EDB's partner organizations.

CITY BUSINESS LICENSING REQUIREMENTS

The County of Sonoma does not require a  business license or tax certificate for businesses operating in the unincorporated areas of the county. However, each City in which a business will generate revenue requires a license and/or a business tax certificate. During this application process, entrepreneurs should inquire about any further required licenses, permits or endorsements

Contacts for each of the nine incorporated cities are below:

SONOMA COUNTY FICTITIOUS NAME STATEMENT

If your new venture will conduct business under a name that does not contain the surname of any and all owners, or is a corporation that will do business under a different name than is registered with the State, you will need to file a  Fictitious Business Name Statement with the County of Sonoma Clerk-Recorder-Assessor’s Office. This application must be filed within 40 days of business start date.

The Clerk’s Office can be reached at:

Sonoma County Clerks' Office

585 Fiscal Drive, Room 103
Santa Rosa, CA 95403
<a>
sonomacounty.ca.gov/CRA/Clerk-Recorder

This should be done after you determine the most appropriate operating structure for your business, and have determined its name. All documentation must be approved by the State of California before the business can become a legally-recognized entity.

REGISTER WITH THE CALIFORNIA SECRETARY OF STATE

Registration requirement and forms may be found at the California Secretary of State website:  www.sos.ca.gov/business-programs

PROFESSIONAL OR SPECIALTY LICENSING

If your new business involves providing a service or specialized product, there is a chance that the State of California will require you to carry some form of occupational or professional licensing.

Online licensing is available for a variety of activities and professions. The appropriate agencies and requirements may be found on the state’s  CalGold website, which offers a wealth of information on licensing and permitting requirements – including contact information – sorted by location and business type.

SELLER'S PERMIT AND SPECIAL TAXING

If your business will offer products for sale, and/or specially regulated items such as alcohol and tobacco, it is likely that the State will require a seller’s permit and special taxing considerations. Both can be applied for online. For more information about licensing and permits, including seller’s permits and use tax information, contact the California State Board of Equalization at:

Santa Rosa Field Office 
50 D Street Room 230 
Santa Rosa, CA 95404 
<a> or www.boe.ca.gov

Sonoma County is comprised of nine incorporated cities, and the unincorporated area is governed by the County of Sonoma. Each jurisdiction is charged with regulating permits and ensuring compliance within its own boundaries. Various state agencies also regulate air quality, water quality, food safety, employee safety, energy efficiency, and the like.

Once you have a business location in mind, check with the local permitting and zoning authority to ensure your business use complies with regulations, and to determine the necessary steps involved in establishing the business location. Contacts for each of the planning, health, and development agencies in Sonoma County are below:

IMPORTANT INFORMATION

• For all businesses,  CalGOLD offers more information on specific health, fire, and safety permitting requirements, including contact information, sorted by business type, industry, and location.
  
  
• For businesses that will offer any type of food or beverage product or service, it will be necessary to contact the County of Sonoma Health Services, Food Safety Program, (707) 565-6565, sonomacounty.ca.gov/Health/Environmental-Health/Food-Safety-Program to determine any additional requirements.
  
  

Businesses are likely to be subject to federal, state and local taxes. Entrepreneurs are strongly advised to consult with a tax professional as they consider business activity, organizational structure and location. For reference, federal and state taxing agencies are described below.

INTERNAL REVENUE SERVICE

All for-profit ventures are subject to federal income taxes. Further federal tax information can be found by contacting the IRS at:

777 Sonoma Avenue
Santa Rosa, CA 95404
<a>(707) 523-0924 or www.irs.gov/Businesses

CALIFORNIA STATE FRANCHISE TAX BOARD

Businesses in California are subject to various taxes based upon activity, size, and employment, among other factors. The following websites can provide information on California Business Tax requirements, forms, filing dates and other important information:

The California Tax Service Center: https://www.taxes.ca.gov/

The California Franchise Tax Board: <a>800-852-5711

THE CALIFORNIA STATE BOARD OF EQUALIZATION (BOE)

The BOE monitors special taxation items such as fuel, alcohol, and tobacco, as well as the collection of California State sales tax and use taxes. More information may be found at: www.boe.ca.gov or by calling <a>800-400-7115

HIRING EMPLOYEES

If you plan on hiring employees, there are additional local, state, and federal regulations. Below are some additional online resources that outline these regulations.

• The State of California maintains a comprehensive list of state-level requirements for businesses with employees at:  www.business.ca.gov/StartaBusiness/AdministeringEmployees.aspx
• Employer information and publications may also be found on the Internal Revenue Service website at:  https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes-2

HOW THE EDB CAN HELP

Visit our  Find Employees page for information about how the EDB can assist with your workforce needs.

Sonoma County Job Link/Cal Jobs 
2227 Capricorn Way 
Santa Rosa, CA 95407

Telephone:  707) 565-5620

Website:  www.sonomawib.org

HOW THE EDB CAN HELP

Visit the  Business Services page for an overview of how we can help local businesses.

BUSINESS RESOURCE DIRECTORY

Find out what  additional business services are available in Sonoma County.