How to Get A Business License in Mountain View, CA

Warning: To regular readers, this is a very dry post that would be impossible to read if you are not starting a business in Mountain View, CA.  However, interested Mountain View entrepreneurs, read on.

Like many other people in the US this year, I have decided to start my own business. Call it a sign of the economic downturn, but people more than ever want to go in business for themselves. You would think that starting a business in the U.S., particularly in California, would be easy. California, after all, is known for its enterprising spirit.  I, however, found the process of legalizing one's business in California to be surprisingly difficult.  What makes it so difficult is that the process varies from state to state, and city to city, and also depends upon the legal structure of your company. The purpose of this post, therefore, is to inform readers how to legitimize one's business, specifically in Mountain View, CA, and to illuminate the purpose of each step.  It is also important to note the order of each step:

1. Decide upon your business's legal structure

2. Apply for Fictitious Business Name with the Santa County Clerk Recorder's Office

3. Publish legal notice of Fictitious Business Name with Santa Clara County newspaper.
4. Get State Sales Tax ID through State County Clerk Recorder

5. Apply for business license with the City of Mountain View, CA

1. Decide upon your business's legal structure

Determining your business's legal structure is important for various reasons. Logistically, it is important to so because it determines the sequence of paperwork you will need to file. In my case, I was debating between an LLC (Limited Liability Corporation) and a sole proprietorship. The internet is glutted with articles on  LLCs, so I won't go into details about LLC's here.  I decided to go with a sole proprietorship, however, because I currently require very little overhead to run my company and therefore don't feel it requires the legal protection an LLC provides.

2. Apply for Fictitious Business Name with the Santa Clara County Clerk Recorder 

Also known as DBA (Doing Business As), applying for a Fictitious Business Name is required in Santa Clara County if you want to receive money through a company that has a different name than your own, or has a different name from your umbrella organization.  

I, for example am the sole proprietor, and will be receiving money through Fishtopia.  Had Fishtopia been an LLC, this step would not have been necessary, since Fishtopia would have been its own legal entity capable of receiving money itself.  It is required by law to apply for a Fictitious Business Name to ensure that consumers have access to the true name and address of the owner of a business. 

3. Publish legal notice of Fictitious Business Name with a Santa Clara County newspaper.

This odd step is required for any fictitious business name filing.  You can do this with any adjudicated Santa Clara County newspaper and it can cost as much as $65. Ask the newspaper if: (a) they are an adjudicated publication in Santa Clara County, and (b) how much it costs to file a legal notice for a fictitious business name filing.  I called three newspapers, and settled for the Los Altos Crier, which charges only $35. The San Jose Mercury News charges the most: $65.  The Mountain View Voice charges only a little less: $55. An added bonus with the Los Altos Crier is that they will also mail you your legal notice, as well as file it with Santa Clara County. This is not the case with all newspapers.

4. Get a Seller's permit account number (also known as State Sales Tax ID) through the California State Board of Equalization

This step is required if you are in the business of selling stuff. For a more legal description of what "stuff" is, click on the link in the heading.  Officially, you shouldn't be taxed if you are selling things out of state.  However, if you are selling things within California, the state requires a state sales tax number so they can tax you properly. What's confusing about this step is that the Seller's permit account number IS THE SAME number as your state sales tax ID. This is important when doing the next step.

5. Apply for business license with the City of Mountain View, CA.   

This is required if you want to conduct business in Mountain View.  In order to apply for a business license, you are required to get a state sales tax ID.  As stated above, getting a state sales tax ID is the same thing as obtaining a seller's permit account number (see step #4). The rest of the application is fairly easy, and costs as little as $35.

Conclusion
When I first sought to legitimize my business, I first started by applying for a business license with the City of Mountain View. Little did I know that there are a slew of other steps and decisions to make before this can be accomplished. If you want to save time, I recommend that you follow the steps I've listed above. To streamline your business filing, it is expedient to first hammer out the legal structure of your business.  This is followed by working with the state to file for a Fictitious Business Name and acquiring a State Sales Tax ID (also known as a seller's permit account number). These must be performed before finally filing for a business licence with the city.