A GUIDE TO OPENING A BUSINESS, Part 4: Obtaining Necessary Permits

A GUIDE TO OPENING A BUSINESS, Part 4

By Christopher A. Kerosky, Esq.

This is the fourth segment in a series of articles I’ve written on the process of starting and managing a business in California.  This is intended to provide the reader with a step-by step guide through the primary tasks necessary to legally register your business and start operations in this state.

This segment is on obtaining necessary permits to open your business..

Overview.

California requires a host of different permits for those doing business in the state.  Many new business owners are confronted with a vast array of licenses, permits and regulations that can be intimidating and confusing to anyone.  But there are resources available, especially on the internet, to help you through this process.

The most common permit required is a seller’s permit, obtained from the California Board of Equalization (BOE).  This permit allows you to do sales of goods in the state and requires your business to collect sales taxes from customers to cover any sales tax owed to the state.  The taxes are paid annually, quarterly, or monthly, depending on the business sales volume.  If you sell goods to the public, you will need a seller’s permit whether or not those goods will be taxable.  This would include any grocery stores, department stores, gift shops, convenience stores, shops of any kind with products for sale.  It also includes on-line sales located in California. 

On the other hand, services are not taxable in California and therefore businesses that only provide services are not required to obtain a seller’s permit.  This would include most architectural firms, engineers, lawyers, doctors, computer repairmen, etc.  Construction contractors who actually sell products such as custom furniture or windows and doors must charge a sales tax.

One obtains a seller’s permit by submitting the appropriate application to the Board of Equalization.  A sole proprietor or partnership use Form BOE-400-MIP; LLCs and corporations use Form BOE-400-MCO.  You can use one application to obtain a seller’s permit for all of your locations where you sell goods.

Many businesses require additional permits from the state.  For example, the state of California regulates many businesses.  Obviously many service occupations such as doctors, nurses, physical therapists, lawyers, engineers, architects and construction contractors are licensed occupations requiring certain qualifications and usually passing an examination to get a license.  Other examples of businesses which require state permits are bars and nightclubs, auto repair shops, locksmiths and waste management companies.   The federal government requires permits for such things as operating a trucking company, operating a radio or television station, manufacturing food, alcohol or drugs, or making or selling firearms.

Local governments often regulate businesses as well.  City zoning laws dictate which activities are allowed in particular locations.  If your type of business is not consistent with the zoning for the location, you will either need to get a permit known as a conditional use permit, or be granted a variance allowing you to be exempted from the zoning rules.  You should contact your city or county planning department to determine whether your business complies with local zoning.

There is one website in California which provides a comprehensive list of all the government requirements for specific businesses.  This site is a good starting place for any business to determine which permits and licenses are necessary for your type of business.  The website address is www.calgold.ca.gov.

If you are considering starting a business, I advise you to go to this site, enter your business type and location, you will be find a list (often a long list) of the licenses and permits you will need from the federal, state and local government.  The bureaucratic requirements can be somewhat overwhelming, but with some persistence, it can be done. 

Here are a few examples of the permits needed and where to get them in Sonoma County:

Building Inspection and Alteration Permits: Permits for modifying the physical space of your business,  contact County of Sonoma Department of Building Inspection

Business Property Statement: Businesses may be required to report all equipment, fixtures, supplies, and leasehold improvements held for business use based on at cost and/or value,

contact County of Sonoma Assessors Office

Business Tax Registration: All businesses are required to register for a Business Tax Registration Certificate, Contact County of Sonoma Treasurer Tax Collector

Fictitious Business Name: You must file a fictitious business name, unless you use your own personal name for the business: Contact County Clerk's Office, Treasurer-Tax Collector

Fire Department Permit: For public assemblies, garages, storage, service stations, theaters, hazardous chemicals or gases,  contact County of Sonoma Fire Department

Zoning and Planning: Your business location must be checked to determine if it is zoned for your type of business. This also applies to businesses operating from a residence,  contact County of Sonoma Planning and Zoning

Registration Form for Employers: Required to file a registration form within 15 days after paying more than $100.00 in wages to one or more employees. No distinction is made between full-time and part-time or permanent and temporary employees in meeting this requirement,  contact state Employment Development Department Employment Tax Customer Service Office

Wage/Hour Laws: Businesses with employees must comply with laws establishing minimum standards for wages, hours and working conditions,  contact State Department of Industrial Relations Labor Standards Enforcement

Workers' Compensation Information: Businesses with employees must maintain Workers' Compensation Insurance coverage on either a self-insured basis, or provided through a commercial carrier, or the State Workers' Compensation Insurance Fund,  contact State Department of Industrial Relations Division of Workers' Compensation

YESTERDAY’S APPELLATE COURT DECISION ON DACA. What does it mean for DACA recipients?

YESTERDAY’S APPELLATE COURT DECISION ON DACA. What does it mean for DACA-recipients?

Yesterday the Fourth Circuit Court of Appeals in Maryland told the Trump Administration it acted without legal basis when it sought to closed down DACA.  The Court found the Administration’s closing of the DACA program “arbitrary and capricious”.  The government failed to "give a reasoned explanation for the change in policy, particularly given the significant interests involved” states the opinion. 

To read the decision: https://www.cnn.com/2019/05/17/politics/fourth-circuit-daca/index.html. 

Here’s a summary of where DACA stands now and where things go from here:

The Fight over DACA and today’s Decision.

On September 5, 2017, Donald Trump announced the rescission of the DACA program.  Those who have DACA status were to begin to lose their status on March 5, 2018, but a San Francisco District Court judge ordered the government to continue renewals.  While that case was pending, two other federal judges issued similar injunctions against Trump.

Last year, the Administration asked the U.S. Supreme Court to expedite its review of these rulings but the Supreme Court refused.  In the meantime, the San Francisco judge’s decision was appealed to the Ninth Circuit Court of Appeals, where the Administration lost. 

Yesterday, another Circuit Court – the Fourth Circuit Court in Maryland -- ruled in favor of the DACA recipients and against the Trump Administration by a 2-1 vote. 

What does this mean for DACA?

This decision means does not have an immediate effect on the current state of DACA, except that it further frustrates Trump’s efforts to close it down. 

The Supreme Court did not consider this case during the current term, which means that the earliest it would hear arguments on the DACA law is next fall.  It is therefore unlikely a decision by the Supreme Court would be issued until next summer, during the 2020 Presidential campaign.

For now, persons who already have DACA can continue filing renewals.  We recommend that applicants do so 150 days before their DACA expires.

Unfortunately, new applicants are still not eligible. 

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CHRISTOPHER A. KEROSKY is a partner with Wilson Purves in the law firm of KEROSKY PURVES & BOGUE, with offices located in San Francisco, Santa Rosa, Ukiah, Napa, Walnut Creek, San Jose and Sacramento.  Mr. Kerosky has been an attorney licensed to practice law in California for 25 years.  He is a graduate of UC Berkeley (Boalt Hall) School of Law and a former trial lawyer for the Civil Division of the U.S. Department of Justice in Washington D.C.  For 10 years, he has been honored as one of Northern California’s top lawyers by San Francisco Magazine, “Super Lawyers” edition.  Mr. Kerosky speaks English, Spanish and Polish and has also working knowledge of Russian.

WARNING: The article above is not intended to be a substitute for legal advice. We recommend that you get competent legal advice specific to your case.

UNDERSTANDING THE CHANGES DONALD TRUMP JUST PROPOSED TO ASYLUM PROCEDURE

UNDERSTANDING THE CHANGES DONALD TRUMP JUST PROPOSED TO ASYLUM PROCEDURE.  

The Trump Administration just announced its plan for new regulations to further restrict the rights of asylum seekers arriving at the U.S.-Mexico border.  These newly announced plans would further limit the legal rights of asylum seekers, accelerate their deportation procedures making it difficult for them to defend against deportation, limit their right to work while their cases go forward and charge them a fee for applying for asylum. 

Here’s a brief summary of what those new proposed changes would do: https://www.linkedin.com/pulse/understanding-changes-donald-trump-just-proposed-asylum-kerosky

(To read about what steps the Administration has taken previously to limit asylum and restrict legal immigration, and California’s efforts to fight these proposals, see: https://www.sonomacountygazette.com/sonoma-county-news/immigration-stories-by-christopher-kerosky-may-2019)

All of these changes would significantly change the asylum procedures set up 40 years ago by Congress when they passed the Refugee Act of 1980 setting up the asylum system.   

1. Limiting Options in Deportation Proceedings

Asylum seekers at the border already have to pass detailed interviews to convince a federal officer that they have a “credible fear” of persecution in their home country based on race, religion, political opinion, or social group.  Now. Trump proposes putting them into special deportation court proceedings, which would limit their options for rights to request other relief-- for example, denying them a right to stay based on marriage to a U.S. citizen.

2. Accelerating Deportation Proceedings

Trump also proposes that all asylum cases to be heard within a six-month period except in “exceptional circumstances.” The problem is that this would make it harder for asylum seekers to get a lawyer, obtain all the documents from their home country to prove their case and prepare for their deportation hearing properly. 

3. Charging a Fee to Apply for Asylum

Applying for protection has been free since ever since the Refugee Act of 1980 created the procedures almost 40 years ago. Under Trump’s new plan, asylum seekers would have to pay a fee to apply.  For people fleeing their country with little or nothing, this would cause more people to abandon their asylum claims.

4. Banning Work Authorization

Under the current rules, asylum applicants can obtain the right to work legally while they wait for a final decision on their application.  Under the new rules, most recent asylum seekers would be banned from getting work authorization. This would deny them the right to legally work while going through the asylum process. Clearly this would make it more difficult for them to survive in the U.S. while they try to prove they would be persecuted if they go back to their home country.