One of the first things to consider when starting or forming your business is the legal structure for the business.    Each structure type has legal, tax, and cost implications, determining which structure is right for you should be done in consultation with legal and/or tax professionals.  Below is a matrix of the types of commons business structures. 

Business structure	Ownership	Liability	Taxes
Sole proprietorship	One person	Unlimited personal liability	Self-employment tax Personal tax
Partnerships	Two or more people	Unlimited personal liability unless structured as a limited partnership	Self-employment tax (except for limited partners) Personal tax
Limited liability company (LLC)	One or more people	Owners are not personally liable	Self-employment tax Personal tax or corporate tax
Corporation - C corp	One or more people	Owners are not personally liable	Corporate tax
Corporation - S corp	One or more people, but no more than 100, and all must be U.S. citizens	Owners are not personally liable	Personal tax
Corporation - benefit corporation	One or more people	Owners are not personally liable	Corporate tax
Corporation - Nonprofit	One or more people	Owners are not personally liable	Tax-exempt, but corporate profits can't be distributed

There are several types of Tax Identification Numbers (TIN).  If you are acting as a sole proprietor, you can either use your Social Security number (SSN) or a Federal Employer Identification Number (FEIN) to report earning to the Internal Revenue Service.

A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA, whereas all other TINs are issued by the IRS.

Types of Taxpayer Identification Numbers

• Social Security Number "SSN"
• Employer Identification Number "EIN"
• Individual Taxpayer Identification Number "ITIN"
• Taxpayer Identification Number for Pending U.S. Adoptions "ATIN"
• Preparer Taxpayer Identification Number "PTIN"

Do I Need One?

A TIN must be furnished on returns, statements, and other tax related documents. For example a number must be furnished:

• When filing your tax returns.
• When claiming treaty benefits.

A TIN must be on a withholding certificate if the beneficial owner is claiming any of the following:

• Tax treaty benefits (other than for income from marketable securities)
• Exemption for effectively connected income
• Exemption for certain annuities

For more information on Tax Identification Numbers, please visit the Internal Revenue Service website www.irs.gov.

If you are starting or conducting a business, or rendering services in the City of Mountain View, you must first complete a business license application.

It is the owner/applicant/agent's responsibility to obtain approval and any necessary permits from the city departments and agencies, listed on the 2nd page of the business license application, prior to commencement of the business.

For information about Mountain View's Municipal Codes and Enforcement, please read the provisions under Chapter 18 - Licenses.

Getting Started: NAICS Code and Mountain View Code

Before beginning the application, please find the correct North American Industry Classification System (NAICS, pronounced Nakes) 6-digit code and Mountain View Business Description 4-digit code for your business.

Fill Out the Application and Sign

• Business License Application
• Cottage Food Operations, if selling food out of the home
• Home Occupations Statement of Compliance

Mobile Vendors

Please print a copy of the Mobile Vending Checklist and the Instructions for Mobile Vending's Certificates of Insurance. All items need to be completed and turned in with your applications before a license will be issued. For more information, read the FAQs for Mobile Vending, then fill out the online application and the Mobile Vending Application.

Chapter 15 of the Municipal Code discusses this further.

Submit the Application

Once the application(s) are completely filled out and signed, please submit the application(s) by one of the following options:

• By Mail: City of Mountain View, Attn: Finance Department 2nd Floor - Business License, Post Office Box 7540, Mountain View, CA 94039-7540
• By E-mail at BusinessLicense@mountainview.gov
• In person by visiting Finance and Administrative Services Department located on the 2nd Floor of the City Hall building, 500 Castro Street, Mountain View, CA 94041.

Please call (650) 903-6317 if you have questions.

Seller’s Permit

Any business that sells or leases merchandise, vehicles, or other tangible goods in California, even if temporary, is required to register with the California Department of Tax and Fee Administration (CDTFA) and pay sales tax on the tangible sales. Any business that holds a seller’s permit must file periodic sales and use tax returns with the CDTFA and pay any sales or use tax due on your sales and purchases. A Seller’s Permit may be obtained from CDTFA.

Temporary permits are available to those whose sales activity will last no longer than 30 days, such as Christmas Tree Sales or sales at craft fairs, etc.

Choosing a name for your business is important. If you are using your legal name or have filed corporate name as part of your company/business name, you do not need to file a Fictitious Business Name statement.  For example, your legal name is Sarah Smith. 

If you name your company/business "Sarah Smith Accounting," you do not need to file a Fictitious Business Name with the County.  If you name your company/business is "Sunshine Accounting" (and you have not filed as a corporation with the Secretary of State for the State of California) you will need to file a Fictitious Business Name statement with the County.

What is a Fictitious Business Name (FBN) Statement?

The purpose of registering a Fictitious Business Name (FBN) with the Santa Clara County Clerk Recorder is to ensure that consumers have access to the true name and address of the owners of a business (Business and Professions Code Section § 17920).

To file, refile, or renew a Fictitious Business Name Statement, please follow these steps:

1. First, research the business name to see if it is taken or look up your previous filing information. The Clerk-Recorder's Office offers a search service (with fees) or you can do this by using their Self-Service search system.
2. Applications can be downloaded from the Santa Clara County Clerk Recorder's web site. Online services are now available through the Self-Service portal.

• In-person:  You can visit the Clerk-Recorder or book an appointment to have a set time for your service.
• By-Mail / Dropbox:  Submit completed application, a self-addressed stamped envelope to:

  Santa Clara County Clerk-Recorder's Office
  ATTN: Business Division
  110 West Tasman Drive, First Floor
  San Jose, CA 95134

Before you sign a lease or purchase a commercial building, please contact the Planning Division at 650-903-6406 to ensure that your business use is allowed in the Zoning district or area you've selected. The Planning Division can tell you if your business meets Zoning requirements and whether you need any other type of City review or permit, such as a Design Review or Use Permit.

Additionally, the Planning Division has information about signage and parking requirements that may apply to your business and location. Remember that home-based businesses also need to check Zoning!

Food Facility Operating Permit

Also known as Health Permit for Serving/Selling Food

Any type of retail food sales requires a permit from the County's Department of Environmental Health. For new facilities, you will need to submit building plans to both the City of Mountain View Community Development Department and the County's Department of Environmental Health. 

Estimated Cost:  Varies according to food facility type.

Turnaround:  Varies. In a situation with no construction/renovation, a permit may be issued in 7 days or less. However, depending on individual circumstances, the process could also take weeks to months. In cases with construction/renovation, health inspectors have up to 20 business days to review building plans.

Building Permits
If you are planning to start, renovate, or expand a small business, or change the type of business operating at an existing business location, you will probably need a permit.  If you are planning to modify the structure, electrical, plumbing, mechanical systems or counters in a building you will need a building permit.  Often this will also require a licensed design professional (architect or engineer) for the preparation of your building permit documents, then the same licensed professional must prepare the plans used for your planning application. To determine if your building permit plans require preparation by an architect or engineer, please contact the Building Department, 650-903-6313, or visit Apply for Building Permits | Mountain View, CA. 

Depending on the scope of work and zoning district of your property, your project may be approved and the permit may be issued “over the counter,” or it may require a more thorough review process, including several pre-application and staff review steps.

Instances that Do Not Require Building Permits

The following projects are exempt from a building permit per Section 105 of the California Building Code and Section R105 of the California Residential Code:

1. One-story detached accessory structures used as tool and storage sheds, playhouses and similar uses with no mechanical, electrical or plumbing installed, provided the floor area is not greater than 120 square feet and comply with accessory structure zoning regulations. Note: These structures may still be regulated by Section 710A of the Building Code, despite exemption from permits.
2. Wood fences 6 feet or less in height and consistent with zoning requirements.
3. Oil derricks.
4. Retaining walls 4 feet or less in height, as measured from the bottom of the footing to the top of the wall, unless supporting a surcharge or impounding Class I, II or II-A-liquids.
5. Water tanks supported directly on-grade if the capacity does not exceed 5,000 gallons and the ratio of height to diameter, or width, does not exceed 2:1 and are compliant with zoning regulations.
6. Sidewalks, residential decks, and driveways not more than 30 inches above adjacent grade, and not over any basement, or habitable story below, and are not part of an accessible route or required exit. Consult with Planning for zoning requirements and Public Works for off-site improvements requirements, if in the public right-of-way.
7. Painting, papering, tiling, carpeting, cabinets, countertops and similar finish work that are not part of an accessible route or furnishing a portion of a kitchen or bathroom remodel. Note: Kitchen and bathroom cabinet replacements require a permit. Exterior painting of any building requires Planning approval, excluding a single family residence or duplex.
8. Temporary motion picture, television and theater stage sets and scenery provided an accessible route is available.
9. Prefabricated swimming pools accessory to a Group R-3 occupancy (single-family residence) that are less than 24 inches deep, are not greater than 5,000 gallons and are installed entirely above ground. Must comply with zoning requirements.
10. Shade cloth structures constructed for nursery or agricultural purposes, not including service systems.
11. Swings and other playground equipment accessory to a detached single-family residence or duplex and not part of a public playground. Note: Play structures cannot be located in the front yard. 
12. Window awnings in Group R-3 and U occupancies, supported by an exterior wall, which: (a) do not project more than 54 inches from the exterior wall; (b) do not require additional support, and (c) are not on a structure located within a Homeowners Association. Must comply with building setbacks and/or allowable encroachments per zoning regulations.
13. Nonfixed movable fixtures, cases, racks, counters and partitions not over 5' - 9" in height.
14. Roofing repairs less than 100 square feet (one roofing square).
15. Window replacements utilizing the existing framing and not on a structure within a Homeowners Association. Note: Any window replacement for an emergency escape and rescue opening required per Section R310 of the California Residential Code or Chapter 10 of the California Building Code requires a permit.
16. A pond at a single-family residence or duplex, not for swimming or recreational use, and contains less than 18" in depth, intended for fish or aesthetic purposes and protected from public access.

Planning  Permits
The Zoning Ordinance recognizes the importance of protecting land from other uses which are unrelated or incompatible, as well as the importance of well-designed and properly integrated developments to the public welfare in all districts of the City.  If you are planning to construct a new development (residential, industrial and commercial) you will need to a planning permit.  If you are looking at augmenting the exterior facade of a building or existing landscaping (or tree removal) will require a permit.  Depending on the project, a licensed design professional (architect or engineer) will be required for the preparation of your permit documents, then the same licensed professional must prepare the plans used for your planning application. To determine if your building permit plans require preparation by an architect or engineer, please contact the Planning Department, 650-903-6306, or visit Apply for Planning Permits | Mountain View, CA. 

Depending on the scope of work and zoning district of your property, your project may be approved and the permit may be issued “over the counter,” or it may require a more thorough review process, including several pre-application and staff review steps.

Instances that Do Not Require a Planning (Zoning) Permits

The following projects are exempt from a planning (zoning) permit, but may require other city permits:

1. Electric vehicle charging stations. Note: A building permit is required.
2. The installation of irrigation lines.
3. Interior alterations and remodels that do not result in an increase in the floor area within the structure or a change the use of the structure. Note: Other city permits are required, including a building permit.
4. Ordinary repairs and maintenance, if the work does not result in any change in the land use of the site or structure or the addition to, enlargement, or expansion of a structure and if any exterior repairs employ the same materials and design as the original. 
5. The addition of a photovoltaic (solar) system to an existing roof or on the ground. Note: A building permit is required to install. 
6. Any spas, hot tubs, ponds that do not exceed 120 square feet in total area, including related equipment, contain no more than 2,000 gallons of water or exceed 3' in depth, and comply with zoning setback requirements for pools/spas. Note: A building permit may be required to install. 

Seller’s Permit

Any business that sells or leases merchandise, vehicles, or other tangible goods in California, even if temporary, is required to register with the California Department of Tax and Fee Administration (CDTFA) and pay sales tax on the tangible sales. Any business that holds a seller’s permit must file periodic sales and use tax returns with the CDTFA and pay any sales or use tax due on your sales and purchases. A Seller’s Permit may be obtained from CDTFA.

Temporary permits are available to those whose sales activity will last no longer than 30 days, such as Christmas Tree Sales or sales at craft fairs, etc.

If your business will be selling alcoholic beverages, then you will need an Alcoholic Beverage License.

Estimated Cost:  Varies depending upon license type. Two typical varieties for restaurants are "On-Sale Beer and Wine Eating Place" (original fee is $300) and "On-Sale General Eating Place" (original fee is $12,000). (See Fee Schedule on the ABC licensing page.)

Turnaround:  Apply for the license in person and allow a minimum of 45 to 50 days to process the application. The law precludes issuance in less than 30 days. The license can average about 75 days for a Person-to-Person transfer, and 90 days for an original. Circumstances often result in a longer waiting period; therefore, before final approval and issuance of a license, caution should be used regarding extensive financial commitments, plans for grand openings, etc.

Select Professions Require State of California Licensing and Registration

The State of California Department of Consumer Affairs oversees 36 boards and bureaus that issue 3.4 million licenses in 280 license types.  A license means the person or company has met state standards to practice within their profession.

Common fields of State of California Licensing include:

• Barbering and Cosmetology
• Dental
• Architects 
• Accounting
• Automotive Repair
• Optometry
• Engineering

Determine if your occupation requires licensing by the State of California, visit Department of Consumer Affairs.

Before finding the right person for the job, you’ll need to create a plan for paying employees. Follow these steps to set up payroll:

The IRS maintains the Employer’s Tax Guide, which provides guidance on all federal tax filing requirements that could apply to the obligations for your small business. The State of California, Employment Development Department, provides guidance on State filing requirements for employers in California.