Start Your Business in Fremont, California

This memorandum provides a brief outline of certain requirements related to setting up your business in Fremont, California. 

General Checklist.  Following is a general checklist for setting up your business in Fremont, California.  Additional requirements may apply depending on the nature of your business and your intended activities.

1.       Research and protect the name of your business.  First and foremost, you need to know whether anyone else has prior rights to use the name of your business.  To do this, you should search the internet for businesses in your area that provide similar services as your business and that use a similar name.  You also should run your proposed name through the California Secretary of State business name database.  If these searches show that someone else is already using a name that is similar to your proposed name, then you should either give up the name or consult with a lawyer concerning the options available to you.

• Register your company’s trademarks, service marks and other intellectual property.  If a trademark, service mark, copyright, patent or other form of IP is important to your business, then you may consider registering the IP with the applicable federal and state offices.  Registering the IP is recommended if you would like to protect the IP in the United States.

2.       Register your business with the California Secretary of State.  You have two choices to register your business in California.  You may wish to have an attorney help you with the necessary filings.

• First, if you wish to use a new California entity to conduct business in California, you should form the entity in California.  To do this you must make filings as applicable for the type of entity with the California Secretary of State.  An attorney should help you with choosing your entity.

• Second, in the alternative, if you wish to operate a branch or office of your existing company in California, you will need to file an application for registration with the California Secretary of State. 

3.       Register any fictitious business name with the Alameda County Clerk’s Office.  If your company uses a fictitious name (that is, a name other than the company’s legal name), then you will need to register the name with the Alameda County Clerk’s Office, (510) 272-6399. 

4.       Register your business with the City of Fremont. You will need to file a Business Tax Application Form with the Fremont Revenue and Treasury Division. This form provides for a business tax registration fee.  The fee for year one is $30.  Ongoing fees after year one vary in amount based on your type of business.

• More Fremont Information. Go to Fremont’s official website (www.ci.fremont.ca.us/business) for copies of all City of Fremont forms and for more information about locating your business in Fremont.  Also, you can leave a phone message with the Revenue and Treasury Division at (510) 494-4798.  The Division will send you forms and provide you with more information.

5.       Call the Fremont Planning Division.  Call the Fremont Planning Division, (510) 494-4440.  The Planning Division will answer your questions about the types of businesses that are allowed in Fremont residential and commercial locations. 

• If your business will develop land or engage in activities that affect the environment, then you may need to contact Fremont’s Development Organization, (510) 494-4443.  This organization will provide a preliminary review concerning code compliance, architectural issues and environmental clearance. For industrial and commercial projects, you may need to call the Alameda County Environmental Health Department, (510) 567-6700, which will provide information and advice regarding health and environmental safety issues.  In addition, the California Office of Foreign Investment, at (916) 322-3518 (ofi@commerce.ca.gov), will assist you in obtaining the necessary permits.

6.       Register for business taxes.  You should consult with an accountant regarding the various California and United States taxes that your company may be required to pay on account of its operations in California.

• Obtain a Federal Employer Identification Number (EIN).  Your company must register for an EIN.  The EIN will serve to identify your company for many different purposes, including to file federal income and payroll taxes, and to open bank accounts.  To obtain your company’s EIN, you must file an Application for Employer Identification Number (Form SS-4) with the United States Internal Revenue Service.

• California Franchise Taxes.  When you register your company with the California Secretary of State, you will be asked to pay your annual California franchise tax.  The franchise tax is based on the income of your company that is derived in California.  The minimum franchise tax is $800, but California exempts corporations from paying the minimum amount in their first two years in California. 

• Ongoing Federal and California Taxes.  Your company will be responsible for ongoing federal and California filings, including for income taxes, sales taxes, and employee-related taxes and withholding requirements.  You can hire accountants and payroll service providers to assist with these filings.

7.       Obtain the business licenses that apply to your business.  There are many types of state and local licenses that could apply to your business.  For example, if you are in the food-service business, then will have to deal with the health department.  Call the CA Department of Commerce, Office of Small Business, at (916) 324-1295 for information about the state licenses that might apply to you.  For local, Fremont licenses, see the discussion above.

8.       Open a bank account.  To open a company bank account, the company must have first (i) registered to conduct business in California, and (ii) obtained an EIN.  You will need a copy of your company’s California business registration to open the account.

9.       Business insurance.  You may wish to purchase business (property and liability) insurance to insure against risks associated with your company’s operations in California.  In addition, in California, all businesses that have at least one employee must purchase workers’ compensation insurance.  You can hire insurance brokers to assist you in purchasing the necessary insurance.

10.   Find a location in Fremont.  Real estate brokers are available to assist you in locating an office or facility in Fremont.  In addition, a number of business incubators provide start-up space and services in California. In the United States, there is generally no limitation on foreign companies leasing or purchasing real estate.

11.   Permit to sell merchandise in California.  If your company intends to sell merchandise in California, then you must file an Application for a Seller’s Permit with the California State Board of Equalization, (800) 432-2829.

Call me to schedule a legal consultation: 510-796-9144