Step-by-step process for Butte
1 Choose a name for your business
We recommend taking some time to choose a name people will remember and associate with
your business. Choose a name that rhymes, speaks about your business, is easy to pronounce,
has positive connotation and is available
After you’ve thought of a few business names, you should search them on the California Business
Search page to make sure they are available for use:
2 Choose the right type of business entity
The most common are:
• Sole Proprietorship
• Partnership
• Corporation
• Limited Liability Company (LLC)
3. Register your business with the California Secretary of State
4 Get your EIN number (Federal Tax ID Number)
5. Open a business bank account
Using your EIN you can open a business bank account at the bank of your choice
6 Get any necessary business licenses or permits
Permitting & Licensing
Local Regulations
An overview of licensing and permitting requirements follows this list of city and county contacts.
City Hall, 3016 Sixth Street, Biggs, CA 95917
(530) 868-5493
www.biggs-ca.gov
City Hall, 685 Kentucky St., Gridley, CA 95948
General: (530) 846-5695 (business license)
Planning: (530) 846-3631(zoning, environmental review)
Forms Online: www.gridley.ca.us/documents/index.php
411 Main Street, P.O. Box 3420, Chico, CA 95928
Planning: (530) 879-6800
Finance Office: (530) 895-4837 (business license)
Forms Online: www.chico.ca.us/Finance/Business_License_Info.asp
1735 Montgomery Street, Oroville, CA 95965
Community Development: (530) 538-2408 (planning, building, business license)
http://www.cityoforoville.org/
5555 Skyway, Paradise, CA 95969
Community Development: (530) 872-6291 (building, zoning)
City Clerk: (530) 872-6291
www.townofparadise.com
No business license is currently required. Contact the city clerk for information on required
permits.
Planning Department: (530) 538-7601 (zoning, other permits)
7 County Center Drive, Oroville, CA 95965
Forms Online: www.buttecounty.net/dds/Planning/planning.htm
Business License
If your principle place of business is within the boundaries of an incorporated city, you must apply to that city for a business license in most cases. If your business’s principle offices are located within an unincorporated area, there is no business license requirement. If you do a large portion of your business in another city, it is a good idea to have a business license from that city,
as well. (See contacts above.)
Fictitious Business Name
If you are operating under any name other than your own, you must file a Fictitious Business Name Statement with the county. It is also referred to as a DBA (Doing Business As). A fee is required when the statement is filed. Also, once filed, the statement must be published in a local newspaper of general circulation.
This statement must be filed with the County Recorder’s Office.
For a PDF copy click here
• Then appear at the Clerk-Recorders Office within 10 working days, at 155 Nelson Ave., Oroville, with valid ID.
• Applications are available in the County Clerk-Recorder’s Office
• The fee is $50.00 for the first business name and first owner’s name on the same statement; each additional business name and owner’s name is an additional $5.00
• After filing, the statement must be published in a newspaper of general circulation, once a week for four successive weeks, with the first publication occurring within 30
days of the filing date.
• The statement expires five years from the date of filing or 40 days after any change in facts of the statement (except any change of residential address for any registrant) within an unincorporated area, there is no business license requirement. If you do a large portion of your business in another city, it is a good idea to have a business license from that city, as well. (See contacts above.)
Permits
Other County permits may be required whether you operate in a city or unincorporated area (e.g., use permits including: health, taxi service, kennels, junkyards, etc.). You should consult the County Building and Planning Department for further information regarding these requirements. (See contacts above.)
Zoning Requirements and Restrictions
Prior to determining a location for your business, contact the zoning office of the city or county in which you intend to place your business in order to determine if your location is zoned properly for your type of business. (See contacts above.)
Food Vendors
If you are going to be engaged in a business that sells food, you need a permit from the PublicHealthDepartment. Butte County Dept. of Public Health
Environment Health Division-Oroville
7 County Center Drive, Oroville, CA 95965
(530) 538-7281
Environmental Health Division-Chico
411 Main Street, Chico, CA 95928
(530) 891-2727
www.buttecounty.net/publichealth/
Liquor License
If your business sells alcoholic beverages, you need a license. The fee is determined by the kind of business you own. Contact the Department of Alcoholic Beverage Control to find out which stipulations apply to you.
Butte and Glenn Counties
Dept. of Alcoholic Beverage Control
1130 Civic Center Blvd., Suite F, Yuba City, CA 96993
(530) 751-8570
State Regulations
Every individual or business engaged in selling tangible personal property must apply to the State Board of Equalization for a Seller’s Permit (Form BT-400). This permit provides you with a registered resale number, which is required for conducting business. There is no fee for this permit, but you may be required to make a security deposit for future sales tax payments to the state. The permit
1) exempts you from paying sales tax on the merchandise you purchase for
resale through your business, and
2) authorizes you to collect sales tax from your customers.
State Board of Equalization
2881 Churn Creek Rd, Suite B, Redding, CA 96002
(800) 432-2829 or (530) 224-4729
http://www.boe.ca.gov/sutax/faqseller.htm
If you sell cigarettes, alcoholic beverages, energy, motor vehicle fuel, or hazardous substances, you must pay an excise tax. Contact:
Excise Taxes Division. State Board of Equalization
P.O. Box 942879, Sacramento, CA 94279-0056
(800) 400-7115 or (916) 327-4208
http://www.boe.ca.gov/sptaxprog/excisereg.htm#contex
All businesses that hire employees must register with the Employment Development Department to obtain an employer account number.
Employment Development Department
Account Services Group, MIC 28
P.O. Box 826880, Sacramento, CA 94280-0001
(888) 745-3886
http://www.edd.ca.gov/employer.asp
To maintain set standards of performance and protect consumers, most states regulate entry in specific occupations or professions. These include the health services, cosmetology, accounting, and real estate. If your business is in any of these regulated fields, you must first meet the standards set forth by the state licensing board and then obtain a license. Licenses are usually valid for one or two years and are renewable. To find out if an occupational license is required for your business activity, contact:
California Department of Consumer Affairs
400 R. Street, Sacramento, CA 95814
(800) 952-5210 or (916) 445-1254 or TTY (916) 322-1700
At the federal level, regulations pertaining to businesses focus on taxation, employer responsibilities, consumer protection, and the registration of trademarks, patents, and copyrights. An excellent summary is IRS Pub. 334, Tax Guide for Small Businesses.
It is available online http://www.irs.gov/publications/index.html or free from the Internal Revenue Service by calling (800) 829-3676.
The IRS also provides an online guide to operating a business at: http://www.irs.gov/businesses/small/article/0,,id=99930,00.html
Businesses with one or more employees are required to obtain a Federal ID Number from the
Internal Revenue Service by filing form #SS-4. This enables the government to verify that you
are paying all appropriate employer taxes and withholding the proper amounts from your
employees’ checks. In compliance with the IRS regulations, you will be liable for federal
withholding taxes, FUTA, and FICA. There is no fee.
Apply online at: http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
The federal government regulates business practices in a variety of areas to protect the rights of consumers. Businesses engaging in mail order sales or selling products in more than one state are subject to regulation by the Federal Trade Commission (FTC), the Interstate Commerce Commission, and/or the U.S. Postal Service. The FTC also oversees product packaging and labeling, product warranties, and advertising claims. The Food and Drug Administration (FDA)
becomes involved if the product includes nutritional supplements, health care, or cosmetics.
For financial services, you must contact the Securities and Exchange Commission: http://www.sec.gov
The Federal Trade Commission
Washington, D.C. 20580
http://www.ftc.gov