Start Up & Expand

Print
Press Enter to show all options, press Tab go to next option

Starting a Business

As you make the many important decisions about your business startup, these five steps and the resources that follow will help you avoid unnecessary delays.

In addition, the Rancho Cordova Tools for Business site provides links to city, county and statewide business resources. The site also provides questionnaires and resources for individuals who are just contemplating their business, and resources for established businesses that are looking to grow.

Five Steps to Starting Your Business

Step 1 – Write a business plan

A business plan will not only help you avoid pitfalls; it is also an essential component of any application for funding.

More information: Small Business Administration (SBA) and Sacramento Senior Corps of Retired Executives (SCORE)

Step 2 – Find a site and verify proper zoning

Available Property: We have partnered with LoopLink to provide an online search directory for available property in our community. 

Check Zoning: Get zoning information for your business quickly and easily.

Start a Business: Learn how to start a new business in a few quick, easy steps.

For retail establishments, the Capital Region Small Business Development Center (SBDC) or Sacramento Senior Corps of Retired Executives (SCORE), both local organizations, may be able to provide rudimentary information to analyze potential sites and markets.

More Information:

Step 3 – Choose a business structure

The California Secretary of State’s office describes each option (sole proprietorship, corporation, limited partnership, etc.) and has the forms to file.

Step 4 – File tax and employer ID documents

If you are selling tangible products you need to collect sales tax. You may need to pay property tax on your business equipment, even if operating from home. If your business has a name, you will need to file a fictitious business statement. With employees, there will be payroll taxes and documentation.

More Information:

Step 5 – Apply for licensing and permits

A business license is required for nearly all Rancho Cordova businesses, including home-based businesses and rental properties. Additional permits may be required depending on the nature of your business.

More Information:

More Resources for Starting a Business

Federal Tax ID

To apply for an employer ID, obtain form SS-4 from the Internal Revenue Service. Tax information for starting a business can be found here.

Mentors and Technical Support

Both the Sacramento Service Corps of Retired Executives (SCORE) and the Capital Region Small Business Development Center (SBDC) provide free one-on-one counseling to those interested in starting and expanding a business. This includes critiquing your business plan, legal requirements, marketing, and licenses needed for your business.

Funding Your Startup

Without a proven record of profitability, the financing options for starting a business are limited, and owners often have to get creative. The Small Business Administration offers a summary of options. In addition to the SBA and Angel/Venture Capital options listed below, this Entrepreneur.com article offers some ideas.

SBA Small Business Grants?

The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs.

SBA 7(a) Loans

The SBA 7(a) loan can be used for business startup. It is structured between you and an SBA-approved lender. SBA’s role is to guarantee the loan where a lender might otherwise be wary of lending to an unknown entity. The maximum loan amount is $5 million, but the average amount is much less. Loans are assessed a guarantee fee, and the interest rate is negotiated between the lender and the business under limitations set by the SBA. Read more about the loan program.

Angel Funds and Venture Capital

These private investors are attracted to a rapid return from fast-growth companies in a variety of sectors. They will generally expect an ownership stake in your company and/or other participation in the company’s management and direction.

Additional Business Startup Guides

Frequently Asked Questions - Small Business Administration

How do I get started in a business?

The U.S. Small Business Administration (SBA) provides a wealth of information on starting a business. Within this category you will find information on entrepreneurship, writing a business plan, and managing and growing your business. You may also take advantage of SBA’s resource partners. Both the Sacramento Service Corps of Retired Executives (SCORE) and the Capital Region Small Business Development Center (SBDC) provide free one-on-one counseling to those interested in starting and expanding a business. This includes, critiquing your business plan, legal requirements, marketing, and licenses needed for your business.

How do I get a tax identification number?

For a Federal Tax ID number, please contact the Internal Revenue Service for Form SS4. You may call the IRS at 1-800-829-1040 and ask for the Small Business Tax Kit #454. You will need to contact the Department of Revenue for state taxes.

How do I get a small business grant?

The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.

What type of interest rate, terms, and fees does the SBA require on its Guaranty Loan Program?

Your loan-repayment schedule depends on the use of the proceeds and the ability of your business to repay. The general terms are five to ten years for working capital; and up to 25 years for fixed assets such as the purchase or major renovation of real estate or the purchase of equipment (not to exceed the useful life of the equipment). Both fixed and variable interest rates are available. The interest rate is negotiated between the borrower and the lender/bank. However, lenders generally may not charge over the maximum rate of 2.25 percent over the lowest prime rate for a loan with a maturity of less than seven years and 2.75 percent over prime for a maturity of seven years or longer. For loans under $50,000, the lender's rate may be slightly higher.

Read more SBA FAQs.

State Agencies and Programs

Fictitious Business Names: Check the Availability of a Fictitious Name with the Secretary of State's Office.

California State Agencies and Programs: Employment Development Department, Board of Equalization, Franchise Tax Board, etc.

Governor’s Office of Economic Development: General information for those starting, relocating, or expanding a business in California.

Free viewers are required for some of the attached documents.
They can be downloaded by clicking on the icons below.

Acrobat Reader Flash Player QuickTime Windows Media Player Microsoft Silverlight Word Viewer Excel Viewer PowerPoint Viewer