There are several key steps to launching a business in the City of Sacramento and they will vary according to the type of business you intend to start. Follow these guidelines to help you move in the right direction.
1. Research and create a business plan
Research your chosen industry or field and assess your readiness to become an entrepreneur. Should you decide to move forward, you will need to develop a business plan for your proposed business.
Resources for free advice on research, business planning, financing and more.
2. Establish a legal business structure
Consult with an attorney or tax accountant to determine what type of legal structure is best for your business.
3. Select a location and research regulations
- Review a map of Sacramento County and its incorporated cities.
- Visit the County’s Parcel Viewer for jurisdiction, land use and other information on a specific address or parcel.
- Select a potential location and research zoning regulations and existing infrastructure before signing a lease, buying a building or starting a home-based business. This step can help avoid unnecessary costs.
- For locations in the unincorporated area of Sacramento County, contact the Planning and Environmental Review Division.
- For locations in an ncorporated city, contact that city’s Planning Department.
4. Explore options for financing a business
- The U.S. Small Business Administration offers several loan and grant programs to assist small businesses.
- The Capital Region Small Business Development Center provides access to capital and advice on how to prepare a loan application.
5. Register a Fictitious Business Name
If you plan to conduct business under a name other than your legal last name, you must file a fictitious business name with the Sacramento County Department of Finance. This applies to businesses in both unincorporated areas and incorporated cities.
6. Obtain a business license
All businesses in unincorporated Sacramento County, including home-based and internet-only companies, must get a business license. More than 20 types of business require additional special licenses. The Department of Finance Tax Collecting and Business Licensing Division offers a complete list.
Businesses located in an incorporated city, should contact that city’s Business License or Revenue Division for information on Business Licenses or Operations Tax Certificates.
7. Learn about additional Sacramento County permits & regulations
For free and confidential advice on all types of environmental permits, contact the Sacramento Business Environmental Resource Center (BERC).
- Interactive search for Sacramento County environmental permits.
- Some types of businesses must obtain a fire inspection permit. To find out if you need a permit, contact your local fire district.
- The Sacramento Metropolitan Fire District (Metro Fire) serves the cities of Citrus Heights and Rancho Cordova as well as the communities of Antelope, Arden/Arcade, Carmichael, Elverta, Fair Oaks, Florin, Foothill Farms, Gold River, Mather, McClellan, North Highlands, Orangevale, Rancho Murieta, Rio Linda, and unincorporated areas of Sacramento County.
- If Metro Fire does not serve your location, enter your business address on the County’s Parcel Viewer to learn which Fire District serves you.
- The Sacramento Metropolitan Fire District (Metro Fire) serves the cities of Citrus Heights and Rancho Cordova as well as the communities of Antelope, Arden/Arcade, Carmichael, Elverta, Fair Oaks, Florin, Foothill Farms, Gold River, Mather, McClellan, North Highlands, Orangevale, Rancho Murieta, Rio Linda, and unincorporated areas of Sacramento County.
8. Explore financing options
- The U.S. Small Business Administration offers several loan and grant programs to assist small businesses.
- The Capital Region Small Business Development Center provides access to capital and advice on how to prepare a loan application.
9. Connect to utilities
- SMUD provides electricity in Sacramento County.
- Pacific Gas & Electric provides natural gas in Sacramento County.
- The Sacramento Area Sewer District serves the unincorporated areas of Sacramento County; the cities of Citrus Heights, Rancho Cordova, and Elk Grove; as well as portions of the cities of Folsom and Sacramento.
- There are more than 20 water providers within Sacramento County. Visit the Sacramento County Water Agency search page to learn which one serves you.
10. Build and Remodel
For locations in unincorporated Sacramento County, contact the County’s Building Permit and Inspection Division to learn what permits and inspections you may need.
For locations in an incorporated City, contact that City’s Building Department to learn about building permits and inspections.
11. Hire Employees
- Get a Tax Identification Number – If you plan to employ anyone who is not a member of your immediate family, you must obtain an Employee Identification Number or Employer Tax ID from the Internal Revenue Service.
- You must register with the California State Employment Development Department within 15 days of hiring employees.
- Obtain Workers’ Compensation information
- Learn About Employment Standards
- United States Department of Labor Wage and Hour Division
- Americans with Disabilities Act
- State of California Labor Commissioner
12. File Tax Information
- Every business in California must submit a yearly Business Income Tax Statement to the Franchise Tax Board (FTB). For filing information, contact a private accountant or the FTB.
- All business owners in California must pay property tax on personal property or fixtures held or used for business purposes. Visit the Sacramento County Assessor’s website for more information.
- Businesses that sell tangible property in California that would ordinarily be subject to sales tax if sold at retail must apply for seller’s permit/resale numbers with the State Board of Equalization.
- All employers and self-employed individuals must pay Social Security taxes.
13. Learn more at Business Resources
*Disclaimer: This guide does not replace the professional advice necessary to start or run a business. Sacramento County strongly encourages all businesses to seek professional legal and financial and real estate counsel when starting, expanding or relocating.