City of Elk Grove

Business License

Starting a Business

 

Frequently Asked Questions


QuestionWhat if I have more than one business or more than one location?

AnswerIf you own more than one business, a separate business license is required for each type of business and for each location.

QuestionCan I use the business license from the previous owner?

AnswerNo. A business license cannot be transferred or assigned to another person or business. As a new owner, you need to apply for a business license in your name.

QuestionI conduct business in several cities. Can I get just one license to do business in all of them?

AnswerUnfortunately, no. Each city has its own business license requirements. It is important to know that most California Cities have a business license tax ordinance. However, each city has its own tax rate, structure and requirements. Check with the appropriate City or County for their rules and regulations.

QuestionWill the City notify me when it is time to renew my license?

AnswerYes. However, it is your responsibility to renew the business license on time even if the courtesy reminder notice is not received. If you do NOT receive a notice two weeks prior to the expiration date, contact staff immediately.

QuestionWhat if I want to move the business?

AnswerAlways check with the City’s Planning Division to verify that the new location is zoned properly for the intended use and whether a use permit or other type of approval is required.

Your license is non-transferable. You will need to reapply for a new license for the new location.

QuestionHow long will it take for me to get my business license?

AnswerOnce we receive your business license application, the process can take anywhere from one week up to 45 days. The average time is two weeks. Once the license is approved by the planning, building, code enforcement and fire departments your license will be mailed out to you.

QuestionDo I need a D.B.A. or Fictitious Name?

AnswerIf your business name is anything other than your surname or has more than one owner (a partnership, association or company) you may need to file a fictitious business name statement with the County of Sacramento. You can reach Sacramento County at 916-874-6644 or download an application www.saccounty.net.

QuestionMust I apply in person?

AnswerYou may apply in person at City Hall, download application or apply online.

QuestionAre there any restrictions on where I do business?

AnswerEvery business must meet zoning requirements to ensure that the business activity and site are compatible. Before signing any lease or rental agreement, check with the City’s Planning Division to make sure business activity is appropriate for the zoning and that it will not heavily impact the neighborhood or require special parking considerations.

QuestionWhat about commercial business locations?

AnswerCheck with a building Permit Technician to determine what building modifications, if any, may be necessary for your business type.

Usually, an inspector will visit your business in order to verify that your building or tenant area meets Fire and Building Code requirements and will issue a Certification of Occupancy.

QuestionDo I need a license if I work out of my home?

AnswerYes. Businesses operating from the home require a business license and must comply with the City's Zoning Ordinance. Types of home-based businesses and the manner in which they may operate are regulated by the Zoning Ordinance. Prior to starting a home based business, owners must read and sign a Home Occupation Agreement. This serves as an agreement to abide by the conditions. If you have any questions regarding zoning, please contact Planning.

QuestionIf I have a State Contractors License will I still need a business license too?

AnswerYes, unless you do not have a physical location here. Out of town contractors do not need to get a license.

QuestionWill I need a Seller’s Permit?

AnswerEvery business intending to sell tangible goods whether it’s wholesale or retail, commercial or home based, sales or repair oriented will need to apply for a California Seller’s Permit. To apply, contact the Board of Equalization at 916-227-6700 or www.boe.ca.gov.

QuestionDo I need a license if I’m paid on a “1099”?

AnswerYes, if you are not an employee, you are considered an independent contractor. Providing services to, or on behalf of a business, may be an employee/employer or an independent contractor relationship depending on the nature of work and span of control involved. Determining the relationship between you and your employer (or employee) can sometimes be confusing. However, put simply, if you are not paid as an employee, you are consider an independent contractor and are required to have a business license.

The State Department of Employment Development (EDD) has a very helpful booklet highlighting specific guidelines to follow in determining the correct relationship between you and your employer/employee. To contact EDD call 916-255-1965 or www.edd.ca.gov.

QuestionWhat if my business has employees?

Contact the Employment Development Department for their requirements regarding State Withholding Taxes, Disability and Unemployment Insurance.

QuestionWhat if I’m self-employed?

AnswerIf you have no employees, contact the Franchise Tax Board regarding withholding Taxes and Corporate State Taxes. They can be reached at 800-852-5711 or www.ftb.ca.gov.

QuestionWhat about selling food?

AnswerIf selling or preparing food, apply for a health permit from the County Environmental Health Department. They can be reached at 916-875-8440 or www.emd.saccounty.net. All businesses that sell food or beverages are required to get a General License. If your business is a mobile food vendor you will also be required to get a Special License as well.

QuestionWhat about a business sign?

AnswerPlease check with Planning and Building before using or installing any type of sign, flag or banner, even balloons. Permanent and temporary signs require review and approval prior to issuance of permits and installation.

Posting signs, handbills or flyers on any utility pole, traffic pole, fence, tree, pier, bridge, mailbox or other public structure is prohibited!

QuestionShould I post my business license?

AnswerYes. The business license must be displayed in a conspicuous location on the premises of any business open to the public. Businesses that are mobile must carry a copy of the business license at all times while carrying on business activities within the City.

QuestionWhat if your business is located outside the City of Elk Grove city limits?

AnswerYou do not need to apply for a business license.

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City of Elk Grove . 8401 Laguna Palms Way . Elk Grove, California 95758 . 916.683.7111 . Fax 916.691.2001