Starting a Business in Fremont

Step 1: Develop a Business Plan

Spending time crafting a well thought out business plan helps you evaluate your idea, estimate costs, and determine the strengths and weaknesses of your proposal. A business plan serves as an important tool to help raise money and is usually required to apply for a loan to attract financial capital.

To assist you in the preliminary stages of starting your business, the City of Fremont offers OpenCounter, a free online tool that helps start the conversation about what it will take to open your business in Fremont. OpenCounter will ask you a series of questions about the business you are interested in opening and based on your responses, will identify the necessary City requirements and permit fees. Its interface is streamlined, easy to use, and can be accessed anywere, any time.

Visit Fremont.OpenCounter.com to get started!

Step 2: Structure and Name Your Business

Next, you'll need to determine the structure of your business for operating and business reporting purposes. Will you operate your business as a sole proprietor, partnership (two or more owners), or corporation (one or more stockholders/officers)?

If you are a sole proprietor, no formation documents are required to be filed with the California Secretary of State. It is also optional for partnerships to file with the state.

If you are starting a corporation, a limited liability company (LLC), or a limited partnership (LP), you must contact the California Secretary of State's Office. They can supply you with all the information and forms you need. For more information, visit sos.ca.gov.

If you are registering your business using a name that is different than your own legal name, such as doing business as (DBA), you need to register the business name with Alameda County Clerk-Recorder's Office at acgov.org/auditor/clerk. This step needs to be completed before obtaining a business tax certificate from the City of Fremont.

Also, public notices announcing your new business name must be posted for four weeks in the local newspaper to complete the registration process. For public notices, contact the East Bay Times, the Tri-City Voice, or the Mercury News.

Even if you believe you are an exempt business, you must still register with the City. The Revenue Division can provide you with information to determine whether your business is exempt from City business taxes. Just call 510-494-4790 or email businesstax@fremont.gov.

You may also want to consult an attorney or law accountant for more guidance.

Step 3: Identify Your Business Location

You've heard the phrase "location, location, location" before (and for good reason). City zoning exists to protect you and your neighbors from incompatible uses. For example, it may not be safe for a childcare center to be located next door to a chemical manufacturing plant, and zoning restrictions help avoid this potential hazard.

Before signing a building/property lease or purchase agreement, visit Fremont.ZoningCheck.com to determine the zoning of the site. Not all spaces are suitable or allowed for certain types of business uses. You can also call the City's zoning line at 510-494-4455 to determine if your business is a permitted use for the location and if any special approvals are needed.

To find commercial properties that are for lease or sale, visit www.siliconvalleyonline.org/business-tools/commercial-prperty-search/. If you cannot find what you are looking for, the City's Economic Development Department is eager to help; just call 510-284-4020 or email econdev@fremont.gov.

Step 4: Prepare for Tax Reporting

All businesses are required to file both state and federal tax returns. To learn more about specific requirements, visit the State of California Franchise Tax Board website at ftb.ca.gov and the Federal Internal Revenue Service website at irs.gov.

Will you sell a product? The California Board of Equalization can assist you in determining whether you need a Seller's Permit. You may also be required to collect sales tax. To do so, the Board of Equalization will issue you a resale number to report that sales tax. Visit their website at boe.ca.gov.

Whether self-employed or an employer with one or more employees, you must also pay Social Security taxes. Find more details at ssa.gov/employer.

Step 5: Apply for a Fremont Business Tax Certificate

If you receive a 1099 form, you need to register for a business tax certificate account with the City. To receive assistance completing the necessary forms, please contact the Revenue Division at 510-494-4790 or businesstax@fremont.gov. Once a business is registered, most businesses can renew online.

The City of Fremont issues business tax certificate rather than a business license. The application fee is $30 for most commercial businesses located in Fremont. The renewal fee in subsequent years is $30, plus a $4 State ADA Business fee and an additional business tax (depending on the type of business). For more information and to apply online, visit the Business Tax page.

Businesses located outside of Fremont but doing business in Fremont (such as vendors, consultants, and contractors) are also required to apply and pay for a Fremont Business tax certificate. Some businesses may be eligible for a business tax exemption; to see if your business is exempt, check out the Business Exemptions page.

All home-based businesses are required to apply for the above business tax certificate, plus a Home Occupation Permit. The Home Occupation Permit fee is $120 for five years (not pro-rated).

Step 6: File for Fremont Permits

Your business may require permits and/or site inspections by City departments as part of your application approval, depending on your business type and/or if you are making improvements to a building.

To determine permit requirements and fees, visit Fremont.OpenCounter.com. In the meantime, here's a quick rundown of Fremont permits you may need to apply for:

Building Permits - Building permits are how the City ensures construction is safe for occupancy and use. Your business must be located in a building constructed appropriately for your use. This permit is required for all new construction as well as for most modifications, replacement construction, additions, and/or remodeling. Any changes to a building must comply with the federal Americans with Disabilities Act (ADA). To apply for a building permit, visit the City's public permitting portal at Fremont.gov/CitizenAccess. For more information, visit our Planning and Building Permits, Permit Types page.
Sign Permits - For businesses that want to display a sign that is visible from outside a building, a sign permit is required. Permits are required for both permanent and temporary signs. To apply for a sign permit, visit the City's public permitting portal at Fremont.gov/CitizenAccess and select building permit. When prompted under Projects Details, select signage as the work type. For more information, visit our Permits for Businesses page.
Other Permits - Other business activities that require a permit include conducting bingo games, distributing advertising material, performing massage services, selling goods from a non-stationary site, and operating a taxi. Permit applications for these types of activities can be obtained from the Revenue Division. For more information, visit the Business Permits page. In addition, new businesses may need a fire permit. For more information, visit our Planning and Building Permits, Permit Types page. If a business is operating a burglar alarm, a permit is required from the Police Department. For more information, visit FremontPolice.gov/i-want-to/get-a-permit-or-license.

Step 7: Apply for Other Agency Permits and Licenses

Depending on the type of business, you may be required to obtain permits or licenses from various county, state, or federal agencies. Please contact these individual agencies directly if applicable.

Alcohol Beverage Control (ABC) License - No person may directly or indirectly - on any pretense - sell, barter, charge for possession, or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained the proper license or permit. Visit abc.ca.gov for more information.
California Department of Consumer Affairs License - Many professional businesses such as accountants, engineers, doctors, dentists, barbers, cosmetologists, security services, and auto repair shops require a state license from the California Department of Consumer Affairs. Please call to find out if you must register your business and visit dca.ca.gov for more information.
Childcare Center or Family Child Care Home License - Licensing of all childcare centers and family childcare homes in California is required. A license can be obtained through the California Department of Social Services website at cdss.ca.gov. In addition, large family daycare homes with nine to 14 children must also obtain a business tax from the Revenue Division. Even if your business is determined to be exempt from other licensing and/or permitting requirements, you must still register for a business tax account.
Contractor's License Construction - General contracting is one of the largest industries in California's diverse economy. The Contractors State License Board (CSLB) receives and processes applications for new licenses, additional classifications, changes of license records, and license renewals. The application for an original contractor's license can be obtained from any CSLB office, by telephone, or online at cslb.ca.gov. All subcontractors must also register for a City business tax account. Failure to register may result in your permit being placed on hold.
Restaurants, Mobile Food Vendors, Salons, and Tattoo Parlors - A health inspection is required for restaurants, mobile food vendors, salons, and tattoo parlors. Contact the Alameda County Environmental Health Department at deh.acgov.org to arrange for an inspection or to request information and advice regarding health and environmental safety issues. Approval from Union Sanitary District (USD) at unionsanitary.com is also needed for restaurants.
Retail and Wholesale Business Permits - If your business involves sales, you will need to obtain a Seller's Permit from the California Department of Tax and Fee Administration (CDTFA) at cdtfa.ca.gov.
Other Permits and Licenses - To determine what other regional, state, and federal permits and licenses your business may need, visit CalGold's The Gold Standard For Permit Assistance at calgold.ca.gov.

Step 8: Plan for Employer Responsibilities

If you hire employees, be sure to register with the California Employment Development Department at edd.ca.gov to be provided with the necessary forms and answer any questions you may have regarding your responsibilities. As an employer, the state requires you to do the following:

Withhold state income tax;
Withhold state disability insurance;
Pay unemployment tax; and
Pay for any employment training costs.

If you have employees, you are required to be located in a commercial location.

You must also register with the Internal Revenue Service (IRS) at irs.gov to receive an Employer Identification Number. The IRS offers many services to new business owners and will provide a package of information explaining the types of forms used and due dates for these forms.

Finally, employers are required to carry workers' compensation insurance. You may obtain this insurance through your own insurance agent or the State Compensation Insurance Fund of California (SCIF). The SCIF is a nonprofit, public enterprise fund that operates like a mutual insurance carrier.

Other Resources

Garbage and Recycling Services

Businesses must subscribe to garbage and recycling services with Fremont's exclusive hauler, Republic Services. Fortunately, Fremont has some of the lowest commercial garbage rates in the county. To sign up, contact Republic Services at 510-657-3500 or republicservices.com.

The Fremont Recycling and Transfer Station (FRTS) is a local public disposal facility where you can dispose of extra trash, appliances, and construction debris. The FRTS also includes the Hazardous Waste Facility. Small businesses can drop off hazardous material such as paints, fluorescent tubes, solvents, and auto fluids. Contact the FRTS at 510-252-0500 or fremont-recycling.com.

Going Green

Sustainability plays a huge role in helping us keep our environment beautiful for years to come. Are you interested in becoming a Certified Bay Area Green Business? Visit greenbusinessca.org to learn more.

Utilities

Pacific Gas & Electric (PG&E) - Gas and electric services in Fremont are provided by PG&E. Contact PG&E at 800-468-4743 or pge.com.

Alameda County Water District (ACWD) - Water services in Fremont, Newark, and Union City are provided by ACWD. Contact ACWD at 510-668-4200 or acwd.org.

Union Sanitary District (USD) - The USD provides wastewater collection, treatment, and disposal services. Contact USD at 510-477-4700 or unionsanitary.com

Local Business Associations

Centerville Business & Community Association

Fremont Chamber of Commerce

Irvington Business Association

Mission San Jose Chamber of Commerce

Niles Main Street Association