>>County Clerk - Fictitious Business Name<<

If you are using a fictitious business name for your business, you should contact the County Clerk’s Office for information concerning the filing of your statement. You will also be able to check the fictitious business name index to determine whether the name you have chosen is already registered as a fictitious name by another owner. If you request it, the Clerk’s office will check the index for you and advise if your name is already being used. The fee for our research is $6 per name.

If the business name or the owner’s name includes the words Inc., Corp., Corporation, LP, LLP, or LLC, you will have to furnish the number given you by the Secretary of State or a copy of your Articles of Incorporation or Certificate of Organization or Registration issued by the Secretary of State.

You can check the index, fill out and sign the statement (must be signed by the owner, or corporate officer, etc.), and pay the required fee while you are in the County Clerk’s Office. You may also file by mail, by writing to us at the above address, enclosing a stamped, self-addressed envelope and requesting that the Clerk’s Office send you a form. We will return the form and instructions. It is also required that your statement be published, and we will provide instructions regarding the publication.

>>Business Structure<<

If you want to structure your business as a corporation you must contact the California Secretary of State’s Office. The Corporation Division can supply you with all the information and forms you need. The Name Availability Unit will assist you in determining corporate name availability, and the Corporate Legal Unit will review and, if acceptable, file your articles, mergers and other legally required documents.

If you wish to file a certificate or application for registration of a limited partnership, you must contact the Limited Partnership Division. The Limited Partnership Division can also assist you with various other legal filings such as trademarks, service marks, claims to names and insignia of organizations and others that may apply to specialized business.

>>Zoning<<

Before finalizing your business location, contact the Department of Planning, Building & Code Enforcement to determine the zoning designation of your proposed site. All businesses must locate in areas zoned to allow that particular business activity. Planning staff will help you determine if your business is an eligible use for that location, and whether any special review is necessary. This applies even if you plan to do business out of your home.

If your business site will require any new construction or related activity, Planning staff will help guide you through any additional review required by City land use regulations, such as environmental impact reports.

>>Business Tax<<

All persons or companies conducting business in San Jose must pay the business license tax whether or not they have an office located in San Jose. This tax is required prior to the commencement of business in San Jose. All businesses pay a basic tax rate of $150.00. Businesses employing more than eight people also pay a tax increment of $18.00 for each additional employee. Commercial and residential landlords and mobile home parks pay based on square feet, units or lots, respectively.

>>Business Tax & Regulations<<

The Treasury Division accepts permit applications for Police Department review of the following businesses:

• Amusement devices (pinball, electronic games, coin-operated devices)
• Circuses and carnivals
• Flower Vendors
• Pawnbrokers
• Secondhand dealers
• Temporary lot uses (Christmas tree, pumpkins)
• Handbills
• Curb address painting

>>Alcoholic Beverage Licenses<<

Sale of any alcoholic beverage requires an alcoholic beverage license. Before applying for a license, it is helpful to check with the City of San Jose Planning Department to confirm that zoning allows alcohol-related uses at your business location.

>>Fire Prevention & Hazardous Materials Storage<<

For compliance with regulations pertaining to fire protection and hazardous materials storage, the Fire Prevention Bureau must be consulted. For example, The Bureau issues permits for: Fire Sprinkler Systems, Fire Alarm Systems, Hazardous Material Storage and Occupancy.

Construction or remolding of any type of food establishment requires a permit from the County. Plans and specifications must be submitted to the County Department of Environmental Health Services at the above address for review and approval.

>>Special Business Permits<<

The Police Department accepts applications and issues permits for the following types of businesses:

• Bingo
• Going out of business sales
• Canvassers of periodicals
• Massage parlors
• Masseuses and masseurs
• Public dancehalls
• Taxicabs/limousine services
• Tow-car businesses
• Peddlers
• Parades
• Cardroom employees
• Ice cream trucks

>>Seller’s Permit<<

If you intend to sell or lease goods, you’ll probably have to get a Seller’s Permit, which is also called a “resale number.” This permit applies to wholesalers as well as retailers. There is no fee for a Seller’s Permit, but you may be required to ensure payment of the state sales tax.

Call or see the State Board of Equalization at the above address to determine if your business needs a Seller’s Permit. Before calling please have the following:

• A business plan (at least preliminary)
• A proposed location for your business
• A personal financial statement

Once you have a Seller’s Permit, tax returns will be mailed to you. File them with the Board of Equalization as directed.

The Board will automatically register you with the Employment Development Department (EDD) if you have employees and have not previously registered with the EDD.

>>Storm Water Pollution Prevention Regulations<<

A General Industrial Storm Water Permit may also be required if you are a manufacturing or one of several industrial facilities SIC code types. Construction projects may be subject to the Construction General Permit. To determine if these permits apply contact:

California Regional Water Quality Control Board
San Francisco Bay Region
Storm Water Permit Unit
1515 Clay St., Suite 1400, Oakland, CA 94612
Telephone: (510) 622-2300
Web site: www.SWRCB.ca.gov

>>Industrial Wastewater Discharge Permit<<

This permit may be required for: 1) facilities that discharge industrial or commercial wastewater that may impact the operation of the wastewater treatment plant or 2) facilities required by EPA to obtain a permit, (generally this applies to SIC 2000-4000). Contact the Plant at the above number to find out if you need this permit.

>>State Income Tax/Corporate Tax<<

This local office can provide you with the basic information and forms you need to pay state business income tax. For new corporations, the Franchise Tax Board publishes a guide for filing your first California Corporation Franchise or Income Tax Return, or Bank and Corporation Estimated Tax Payment Voucher. Ask for item FTB 1060.

>>Business Property Tax<<

While a new business starting up in San Jose does not need to contact these agencies initially, these are useful numbers for future questions that may arise related to property tax assessments and collections.

Conducts business and real property tax assessments.

>>U.S. Internal Revenue Service<<

All businesses are required to file tax returns. You may also have to report certain business information to the Internal Revenue Service (IRS), and in some cases withhold employee taxes.

Contact the IRS for information and instructions. The IRS provides publications that describe general requirement and gives assistance in developing a system for ongoing ax reporting.

Publications for small business include:

• Publications 334 - Tax Guide for Small Business
• Publication 583 - Information for Business Taxpayers
• Publication 509 - Tax Calendar

You’ll need to obtain a Taxpayer Identification Number (TIN). It can either be your Social Security Number or your Employer Identification Number (EIN). Most small businesses need an EIN even if they don’t have employees. Publication 583 gives information on an EIN, and how to apply for it with the IRS.

Every type of business has to file business income tax. Corporations must pay tax separately from shareholders.

Sole Partnership, General Partnership and Subchapter S Corporations are taxed as an individual.

Check with the IRS about the tax forms you should fill out.

Everyone is responsible for paying Social Security Tax. If you are self-employed, your Social Security contribution is made through the self-employment tax. Check with the IRS to determine which tax forms you should use for your particular type of business.

You may have to pay excise taxes if you produce or sell certain products such as chemicals, alcoholic beverages, tobacco or guns. Check with the IRS if you’re affected, and to find out which tax forms you should have.

For full information on all of the above, see or call the IRS for appropriate publications and tax forms.

If you have employees, you will have to comply with certain employee wage withholding and Social Security tax requirements.

>>Employment Information<<

Any business hiring employees must comply with all State and Federal labor laws, employment tax and insurance requirements. For specific information you can contact any of the agencies found in this section:

According to the U.S. Internal Revenue Service, an employee is: “Anyone who performs services that can be controlled by an employer.” For example; if you are a “homeworker” such as a maid or cook, you’re an employee. If you are in business for yourself, you are not an employee.

>>Worker’s Compensation Insurance<<

All employers are required to carry Workers’ Compensation Insurance. It covers your employee(s) for work-related injuries. Contact the California Industrial Relations Department for information on workers’ compensation requirements as well as minimum wage, working hours and working conditions. To get an insurance policy, go to any insurance company that issues Workers’ Compensation Insurance or to the State Compensation Insurance Fund at the following address:

>>Withholding, Insurance & Taxes<<

>>Employee Recruitment & Training<<

The San Jose First Employment Program (SJFEP) can help businesses find qualified employees to fill their openings. SJFEP is a one-stop brokerage service with a community-wide network of training organizations, colleges, community based organizations and other resources. SJFEP can help you save recruitment costs, plus your business may be eligible for hiring tax credits and other benefits. SJFEP is a no cost service provided by the City of San Jose.

CalJobs provides an Internet based recruitment assistance and resume listing service.

Provides job training and employment services to disabled and economically disadvantaged workers. Coordinates job preparation and training services, and can work with employers to set up specialized training programs. Companies may qualify for State Training Funds to help train their employees.

>>Public Works<<

Contact the Public Works Department for infrastructure-related regulations, including traffic reports, soil studies, geologic hazards, grading, curbcuts, flood control, sewer availability and improvement agreements.

>>Building Permit<<

If modifying or improving the structure your business occupies, you must apply for a building permit from the Building Division. Permits may be required for work related to the building’s physical structure, electrical, plumbing and mechanical systems. Fees vary, depending on the type and amount of construction.

>>Garbage/Recycling Collection Services<<

In San Jose, businesses can choose from among several garbage and recyclable collection firms, and can cancel their service contract with 30-days written notice after 12 months of continuous service. Visit www.sjrecycles.org/business/rec_haul.htm for a listing of these service providers. Businesses can also receive a free waste assessment to maximize waste savings through this program.

>>Water Conservation<<

Financial incentives of up to $50,000 per project are available for businesses that make process changes to reduce their wastewater discharge.

>>Telecommunication Services<<

Since the deregulation of the telecommunication industry there is a wide range of carriers to choose from. Please consult the Yellow Pages under the heading, “Telecommunications Carriers,” to select a provider for your business.

>>Electric/Gas Service<<

Call the above number for new service. If you have a new business, you’ll have to pay a deposit, usually two times the average monthly bill. The deposit is usually refunded following on-time payments for twelve consecutive months. You can get service within 48 hours of your request, unless you need a new meter. In that event, allow at least one week for the start of service.

Because of the recent deregulation of the electric/gas industry, you may wish to consult the Yellow Pages under the heading “Electric Utility Companies” to compare other providers.

>>Water Service<<

For most of San Jose, service is provided by:

San Jose Water Company
374 West Santa Clara Street
San Jose, CA 95196
Telephone: (408) 279-7900
Hours: 8 a.m. - 5:30 p.m.
(Telephones until 5:25 p.m.)
Web Site: www.sjwater.com

In the Evergreen area of San Jose, service is provided by:

San Jose Municipal Water System
3025 Tuers Road
San Jose, CA 95121
Telephone: (408) 277-4036
Hours: 8 a.m. - 5 p.m.
Web Site: www.sjmuniwater.com

In the South Blossom Valley area of San Jose, service is provided by:

Great Oaks Water Company
15 Great Oaks Blvd, Suite 100
San Jose, CA 95119
Telephone: (408) 227-9540
Hours: 8 a.m. - 4:30 p.m.
Web Site: www.greatoakswater.com

>>Information Sources<<

A full range of business, professional, and technical information is available in the Reference Section.

>>Office of Economic Development<<

San Jose’s Office of Economic Development:

• Provides business relocation assistance
• Operates the Export Resource Center providing reference materials and international business leads
• Oversees the Foreign Trade Zone which can mean significant tax incentives for companies
• Manages the Enterprise Zone in which businesses are eligible for tax and hiring credits
• Offers business loan/financing programs
• Manages the San Jose First Employment Program, a one-stop job linkage program to aid local businesses in finding qualified workers

>>Ethnic Chambers of Commerce<<

>>Chamber of Commerce<<

The San Jose Silicon Valley Chamber of Commerce is the largest business organization serving San Jose and Silicon Valley. The chamber’s programs are geared to improving the business climate, offering economic information, creating business development opportunities, promoting lead exchanges, and building business skills through marketing, management and leadership education. The chamber also provides networking and lead development opportunities as well as a range of information and educational services to businesses.

>>Entreprenuerial Center<<

The SBA•Cisco Systems•San Jose Entrepreneur Center is made possible by a unique partnership between the U.S. Small Business Administration, Cisco Systems, the City of San Jose, and a number of national corporations and non-profit organizations.

The Center's mission to provide entrepreneurs with a full range of support services-in one convenient location-to help them succeed in today's competitive economy. The services include:

• Financing Programs- Microloans, conventional financing, commercial real estate financing and venture capital
• Technical Assistance- in the form of expert counseling for start-up entrepreneurs, targeted consulting for established small to medium-sized businesses
• Training- in all aspects of small business management
• Technology- development of Internet and technology skills and ease of use of them
• Procurement- Assistance with public and private procurement and certification programs
• International Trade- information, training, counseling, consulting and financial assistance

For more information, please visit their website at www.ecenteronline.org/home.asp.

>>Japan External Trade Organization<<

JETRO is a non-profit, Japanese government supported organization dedicated to promoting mutually beneficial trade and economic relationships between Japan and other nations. JETRO sponsors a variety of programs that assist American companies in entering the Japanese market. These include seminars, trade fairs, support services in Japan, databases and specific advising services.

>>Export Controls<<

The Bureau of Export Administration (BXA) manages and enforces the export control and antiboycott provisions of the Export Administration Act (EAA). This Act provides for export controls on dual use goods and technology (primarily commercial goods which may have potential military applications). BXA’s Western Regional Office helps companies interpret and comply with current regulatory requirements by providing individualized counseling on the EAR, hands-on workshops, and assistance with compliance program development.

>>Export Assistance<<

The Commercial Service supports U.S. firms, especially small and medium-sized companies, in their efforts to increase their exports, strengthens the American economy and creates jobs. Through its worldwide network of Export Assistance Centers in more than 140 U.S. cities and U.S. Embassies and Consulates, the Commercial Services provides information on foreign markets, international partnering with potential buyers and distributors, cost-effective trade mission and trade show exhibition opportunities, and government to government advocacy.

>>California Trade & Commerce<<

Provides export finance loan guarantees, export counseling and information and coordinates export needs with other State organizations in the California Trade & Commerce Agency.

>>Taiwan Trade Center<<

Taiwan Trade Center - San Francisco is a branch office of the Taipei-based China External Trade Development Council (CETRA). We are non-profit organization promoting trade between the United States and Taiwan. We provide you free sourcing services and help you do business with Taiwan. Moreover, we can set up one-on-one meetings with the Taiwan business contacts of your choice at our meeting facilities in the Taipei World Trade Center Complex.

At one time, Silicon Valley was known for chips. Today, the entire high-tech “food chain” is represented here, from semiconductors, computers, software and networking to multi-media, wireless, and the Internet/World Wide Web. Much of the area’s success is built on its concentration of suppliers and support services that service the high tech industry.

What’s important to remember is that many of these high-tech companies are start-ups, essentially small businesses. And it’s small business that fuels the U.S. economy. The suppliers and support services that are based here are largely small businesses as well.

Of course, San Jose’s business profile is diverse. Along with high-tech, commercial, retail, industrial, professional and service businesses all thrive. One common element though is that they’ve all been new or expanding businesses at one point in their business life-cycle.

This Guide to Doing Business in San Jose is directed toward new enterprises hoping to locate in San Jose, as well as businesses that are already here and looking to expand.

It brings together information about a range of both public and private sector resources to help your business succeed.

Netcom On-Line Communication Services, Inc., which is proud to be headquartered in downtown San Jose, partnered with the City of San Jose to produce this Guide because we recognize the importance of small business to Silicon Valley’s economic vitality and continued growth.

As a leading Internet Service Provider, Netcom is committed to helping your business join what is projected to be 350 million Internet users by the year 2000. We look forward to being your partner in the exciting digital economy and contributing to your success in the rapidly changing world of electronic commerce.