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1 Checklist for Starting a Business in San Francisco General Planning & Development Organizations San Francisco Office of Small Business ( =3805) and the Small Business Assistance Center (SBAC) ( sfgsa.org/index.aspx?page=4206) function as the central point of information and referral for entrepreneurs and small businesses located in the City and County of San Francisco. San Francisco Economic Development Alliance ( consistss of 10 member organizations who directly serve small businesses and micro enterprisess in the City, providing services such as loan packaging and micro loans, entrepreneurship training, and business plan development. Urban Solutions ( offers a comprehensive range of economic development services, including small business consulting and workshops, free of charge, to their clients. Renaissance Entrepreneu urship Center ( is dedicatedd to helping women and men who traditionally lack access to resources and information to achieve financial self sufficiency services, resources, and networks for business owners at every stage of business development, from idea feasibility through start up, growth, and expansion. ANewAmerica ( offers a holistic three year program, the Virtual Business Incubator, that assists new Americans in the San Francisco Bay Area to through entrepreneurship. Renaissance provides training, sup port establish or expand micro businesses, build personal assets for the sustainability of their families, and develop the community assets necessary to support the political, social, and cultural empowerme ent of their communities. Mission Economic Development Association (MEDA) ( provides business development programs thatt offer one on one business technical assistance and group workshop curriculum in both Spanish and English. It offers micro tailored to their specific needs. entrepreneurs one on one consultations, workshops, and access to micro loans Pacific Community Ventures ( creates jobs and economic opportunity in low income communities through the direct support of small businesses as well as by advocating for systemic change to increase investment in these vulnerable communities. We fulfill our mission through three core programs. Legal Services for Entrepreneurs ( provides free business legal services to low income individuals, including women and people of color, who want to start or develop non profit economic development. SCORE ( offers free, helpful business advice online and in businesses and certain for profit businesses committed to community person at offices nationwide from volunteer mentors who are working or retired business owners, executives, and corporate leaders.

2 Your local Small Business Development Center (SBDC) offers low cost business training and free one on one business mentoring. Locate them by zip code at: Writing a Business Plan There are no set rules for drafting your business plan, but for the most success it is best to follow consistent guidelines. A great resource is the SBA Build Your Business Plan Guide, which can be found at: plan/1 To increase your chance of success, take the time up front and before anything else to explore and evaluate your business and personal goals. Then, use this reflection to build a comprehensive and well thought out business plan. Your business plan is just as valuable a tool to you as it is to your potential investors. Your business plan functions in a number of uses. Committing yourself to writing a business plan is a methodical way to mentally construct your business. Accomplishing the technical aspects of business planning will allow you to better utilize your time and resources with the ultimate goal of establishing a realizable business. Additionally, a detailed business plan will often be your best resource in obtaining funding, as investors will want to understand how they will earn back their investment. Business Structure There are several forms of legal entities of businesses, each with their own advantages and disadvantages. Learn more about the various business structures at: Businesses & Self Employed/Business Structures All new businesses that are not a sole proprietorship must file formation documents with the Secretary of State, the required forms can be found at: Any contracts between owners of a partnership should be drawn up before beginning business Information about the tax implications of each business structure can be found here: structure and tax implications It is best to thoroughly research the structures and settle on the one that best fits your needs and goals. No classification is any better than another, they are only different. Fictitious Business Name Statement A licensed business name is necessary if the company name differs from your own, a filing of a fictitious business name statement is also required before you can open a business checking account in the title of the business. This statement is filed with the county government. Your local county website should have a section specifically designed for the filing of fictitious name statements. Counties will vary, but most require a small fee. Usually for an additional fee a notice will run in the local newspaper announcing the creation of your fictitious business name.

3 California Business Name Availability ( provides information to check a business name does not already exist and may be used. For information on filing a fictitious business name in San Francisco, visit Zoning It is imperative to determine zoning regulations and requirements prior to signing any lease or contract. The intended location of your business must have the proper zoning for your planned use of the site. Zoning maps can usually be found at your city or county website If you will be operating out of your home you must follow the requirements for home occupants, if any, in your municipality. The San Francisco Planning Department website ( planning.org/) has a plethora of information concerning permits and zoning in San Francisco. Visit the site to find zoning maps, permit forms, and information about the various planning commissions and programs shaping San Francisco. Business License In order to operate your business you must comply with a range of city, state, and federal rules and regulations. and permits offers a search tool for discovering which licenses are necessary for your business based on your industry and location. Business licenses can typically be purchased at City Hall and the price typically ranges $40 and up, depending on the number of persons you intend to employ. Required before business can begin. If you intend to run your business out of your home, it may also be necessary to obtain a Home Occupation Permit. Additionally, you should check with your homeowner s association as some neighborhoods prohibit the running of businesses out of the domicile. The California Business Portal ( provides information on how to obtain Business Permits, Licensing and Registration in California. California Seller s Permit Application ( is required for all business selling or leasing tangible property (including anything you did not prepare such as sodas, etc). All businesses operating in San Francisco must also possess a Business Registration Certificate. Information on how to register your business can be found at: Special Licenses and Permits The licenses and permits necessary to run your business legally are determined by the type of business you wish to establish.

4 The CalGOLD database ( provides detailed information on business permit, license, and registration requirements from all levels of government. Here you can find detailed information including a description of the requirement, contact information for the supervising agency, and a direct link to the agencies website. Their catalog of information will assist you in finding the appropriate permitting information for your business, as well as direct you to links and contact information for the agencies that administer and issue business permits, licenses, and registration requirements from all levels of government. The State Department of Consumer Affairs lists more than 200 regulated occupations and professional services. Their website, offers valuable licensing information. Police Regulated Businesses are businesses within an industry that have a history of being associated with illegal activities. These businesses often include, but aren t limited to, pawn shops, massage parlors, tattoo and piercing parlors, and card rooms, although it differs by county. A full list of police regulated businesses can be found at your local police station. If your business falls into the category of a police regulated business then your business will be subject to investigation and review prior to the granting of licenses. Federal Business Tax For federal tax information and a copy of the Tax Guide for Small Businesses, an invaluable resource to help understand how to properly file federal taxes, visit: pdf/p334.pdf Everything you need to know about Employer ID Numbers (EIN) can be found at: Businesses & Self Employed/Do You Need an EIN%3F IRS Small Business Tax Center ( Businesses & Self Employed/Small Business and Self Employed Tax Center 1) offers resources and general information for small business owners and self employed individuals, around business taxes, employee guidelines and tax workshops available in your area. State Business Tax California State Tax information can be found at: Your Federal Tax ID number, otherwise known as the Employer Identification Number (EIN), is comparable to a Social Security number for your business. One can be obtained by filling out Form SS 4 which is available online at: The Employment Development Department (EDD) is a department within the California State Government that promotes California businesses as well as aids employees and employers. They release yearly editions of their handbook, California Employer s Guide, which covers broad topics concerning how to succeed in business. The most recent edition can be found at: It is a legal obligation to invest in Workers Comp Insurance prior to the hiring of any employees. This can be done with your insurance agent or broker, but CA State also has

5 established a State Fund. This fund is the largest supplier of Workers Comp Insurance in the state and grants many opportunities to low income startups. An important distinction when hiring employees, especially for tax purposes, is classifying their employment status appropriately. The IRS has a helpful publication for understanding the different classifications and rights of certain employees, this can be found at: Along with many other resources, the SBDC offers this simple, easy to use step by step guide to hiring and maintaining employees, visit: Business Insurance Businesses are major investments; sometimes a life s work can go into opening a business. Unfortunately, the truth is that it s not uncommon for businesses to be robbed, vandalized, or otherwise destroyed. It s incredibly important for all business owners to invest in Liability and Property Insurance, to protect your building, inventory, and equipment. Many insurance companies offer Business Insurance and most will work with you to create a policy that best fits your needs. Contact your insurance agent or shop around before settling on a policy. Accounting Tips All expenses and income needs to be well tracked. One of the most common factors in the failure of new businesses is the mismanagement of funds. It s important to establish bookkeeping procedures and deal with all expenditures and revenues similarly, this will make income reporting and cash management easier and more realistic. There are a number of easy to use accounting programs, the most popular being QuickBooks software, which is utilized by approximately 85% of all small business owners. There are advantages and disadvantages to all accounting software so it s important to compare/contrast various programs before settling on a program. For most small businesses, a simple, inexpensive program will suffice for needs. While there are many extremely expensive, extremely complicated programs that exist, programs like a basic QuickBooks is designed to be used by entrepreneurs with no formal accounting training. Additionally, there are a number of free and open source programs with growing communities, a list of these free small business accounting programs can be found at: Many small business owners outsource their preparation of financial statements to private accounting firms. Even if you decide to not have an accountant, it s a good idea to have an accountant prepare your year end tax accounting. Many firms will offer this service for relatively cheap and this will prevent inconsistencies on your tax forms, which could otherwise lead to tax audits. Financing Tips

6 It takes money to make money and all businesses need capital to first settle then expand. Typically this capital will come from savings, home equity, or friends and family. The next most frequent source of funding is some kind of business loan. If you are considering a business loan, it is a good practice to contact multiple lenders, and to do so early. The U.S. Small Business Association (SBA) guarantees small business loans through local lenders. These loans are particularly helpful for minorities, persons with low income, and persons with questionable credit. You can learn more about California s guaranteed loan fund at: Lenders will want you to be successful, as a loan is, in many senses, an investment in you and your business. Lenders will be very clear about their requirements and timelines. Begin your search for the appropriate lender at your own bank or credit union. If they don t offer commercial business loans, chances are they will be able to recommend lenders within the community who will be able to help you. A directory of non profit organizations offering small business loans can be found at: When applying for a business loan, lenders will want to see a copy of your business plan. Generally, lenders will be very clear and upfront about the information they require, and your application won t be affected by a frank discussion about the presentation of your business plan. The SBA offers tools and tips on how to write a concise and wellthought out business plan at: structure/startingmanaging business/starting business/writing business plan Crowd funding has become a popular method for small companies to get off the ground while gaining exposure. Sites like offer entrepreneurs, inventors, and artists a platform for raising capital to fund their various projects. Usually, a service or product will be offered in exchange for donations. The first step in obtaining funding is to write a business plan. No organization will invest in a company without first reading their business plan. Additionally, your business plan will be an invaluable tool in helping you to decide the appropriate amount of capital to borrow. EARN ( gives low income workers the power to create economic prosperity for generations to come. EARN helps low wage families through innovative financial products including matched savings accounts, checking accounts for the unbanked, and money management coaching. Opportunity Fund ( help clients join the financial mainstream by lending a helping hand, through their award winning approach that includes financial education, microfinance loans, matched savings accounts, and affordable housing financing. Funding Resources

7 TMC Working Solutions ( provides underserved microentrepreneurs with the access to capital and resources they need to successfully start or grow viable businesses. They provide microloans, technical assistance and one on one support, no cost referrals to local business resources, and educational presentations on access to capital. Mission Asset Fund ( works to expand access to financial services, savings and investment opportunities for low income and immigrant residents of San Francisco s Mission District. Bay Area Small Business Finance ( loans) offers commercial loans to start up and existing businesses in the San Francisco Bay Area, with emphasis on Alameda, Contra Costa, San Francisco, and Solano counties. All products are fullyamortized term loans at fixed competitive interest rates offered to firms unable to obtain conventional financing. Small Business Administration (SBA) ( loan program) provides approved small businesses with long term, fixed rate financing used to acquire fixed assets for expansion or modernization. 504 loans are made available through Certified Development Companies (CDCs), SBA s community based partners for providing 504 Loans. Technology/Green Resources Prospective companies with a focus on developing environmentally efficient products and procedures have many resources available to them in terms of funding and development. The California Innovation Hub Initiative (ihub) serves to assist in stimulating partnerships, economic development, and job creation through specific research clusters at state designated ihub locations. Information about the program can be found at California offers incentives to corporations working to produce energy efficient products, a database of those incentives available can be found at the Database of State Incentives for Renewable & Efficiency (DSIRE) at Other rebates and incentives can be found at businessfinancial resources Resources for Veterans There are many state programs and incentives available to veterans, including priority counseling, more access to funding, and priority in procuring government contracts. The SBA gives special privilege to veterans, more information about how the SBA can help veterans can be found at service disabled veteranowned California s main designated program for connecting veteran business owners with government contracts is the website

8 The Veterans Business Outreach Center has support and information for veterans starting businesses in California, their website is ca.org Resources for Women The Women s Business Enterprise National Council (WBENC), is a nationwide non profit organization dedicated to advocating women owned businesses. Their main focus is developing relationships between major corporations and womenowned small business. The National Association of Women Business Owners (NAWBO), is a community of professional women entrepreneurs that promote economic development within the entrepreneurial community. Women s Initiative ( provides high potential, lower income women the training, resources and on going support to start and grow their business. The business management training, technical assistance, and financial services they provide in English and Spanish improve the quality of life for the women they serve, their families, and communities. C.E.O. Women ( creates economic opportunities for low income immigrant and refugee women through teaching English, communications and entrepreneurship skills, so they can establish successful livelihoods. C.E.O. Women then provides women with intensive mentoring, coaching and access to capital needed to start a small business. Resources for Food Service Businesses SF Cart Project ( seeks to complement the research of people interested in starting or expanding a street food business of their own. They provide a relevant central resource for documents, information and community awareness regarding the often confusing (and occasionally contradictory) process of starting and running a legal mobile food business in the Bay Area. They even provide a guide to Starting a Legal Mobile Vending Business ( Incubator programs cut the start up costs that often prevent new businesses from succeeding. Especially in restaurant and other food based businesses, the costs of startup can be staggering. Additionally, FDA regulation concerning food sales often mean razor sharp margins from profit. Kitchen Incubators, sometimes called Shared Kitchens allow for food service entrepreneurs to build their client base and gain valuable experience before investing heavily in their own equipment. There are currently over 50 kitchen incubator programs in the US with a nearly 87% success rate for graduation from the program. National Business Incubator Association ( is the world s leading organization advancing business incubation and entrepreneurship. Each year, it provides thousands of professionals with information, education, advocacy and networking resources to bring excellence to the process of assisting early stage companies.

9 Culinary Incubator ( is a website dedicated to small food businesses who are trying to find a commercial kitchen to cook their product. It includes a map of culinary incubators throughout the United States. Getting Started in the Specialty Food Business ( is a guide written by Extension Food Scientists, covering everything from food product development to pricing. Food Service Licensing and Regulations FDA Guidance Documents ( provide information on how to follow federal regulations for the food industry, including food labeling and food ingredients and packaging. Processor s Permit Application ( px) is required for all processors, manufacturers, packers, and holders of processed food, and businesses shipping food products intra or inter state. A Health Permit ( is required for food preparation and service, food product and marketing, laundries, etc. This office provides information and referral to District Health Centers for application. California Department of Alcoholic Beverage Control ( administers the provisions of the Alcoholic Beverage Control Act, including licensing, enforcement and regulatory mandates. Their website provides links to license and industry information for businesses selling alcoholic beverages.