Whether you are a sole proprietor or a large corporation, there are certain requirements each business must meet in order to start a business in Livermore. There are several different types of permits and licenses for the several different types of businesses. For example, a business that sells products or provides services out of residential property must apply for a Home Occupation Permit. All businesses must apply for a business license with the City. The cost associated with the business license is based on an estimate of taxes the business will incur and the type of services or products the business will sell. A business owner must decide what type of business will be created in order to complete the business license application.
If the business sells products it will also need to obtain a seller’s permit in order to withhold sales tax. This permit is issued by the Board of Equalization for the State of California. There are also 29 special taxes and fees that may apply to the business such as Alcoholic Beverage Tax.
If the business provides services such as a contractor, real estate broker, plumber or attorney, the business must hold a certification from the governing body that regulates the service. The business may also need special permission from the city to operate a business. The special permission is granted by the planning department after a public hearing. Once a public hearing has taken place and the special use is approved by the department, a conditional use permit (CUP) is issue.
The City of Livermore has special incentives for new businesses through its Economic Development Commission such as the Sales Tax Reimbursement Program, the Development Impact Fee Deferral Program and the High Wage Incentive Program.
Many new businesses find it beneficial to form a business entity like a Limited Liability Company (LLC) or Corporation. Entity formation may provide tax benefits, allow the individual owners to protect their personal assets from lawsuits or creditors, or provide a structured exit strategy in the event the business owner wishes to sell his or her business. Businesses may retain The Krueger Law Office as its business attorney in order to ensure all of the steps identified above are properly completed. New businesses are offered entity formation packages for a flat rate of $1,500. This includes:
- Entity formation (LLC, C-Corp or S-Corp)
- By-laws for Corporations or Operating Agreement for LLC drafted specifically for the business owner’s needs
- Ensure all local businesses license and permits are properly obtained
- Employee Identification Number (EIN) in order for business to file taxes
- Seller’s permit for withholding sales tax
The Krueger Law Office 925.454.4460 2300 First St. Suite 336-K, Livermore, CA 94550