Startup Guide

Welcome to the Startup Guide

Answer a few questions about the business you are looking to open and receive a step-by-step registration checklist to complete the applications necessary to register your business.
You’re only steps away from becoming compliant. Get started!

City registration
Business name
Seller’s permit and use taxes
Employee Identification Number
Registration checklist

The assistant is estimated to take 10 to 15 minutes.
Please click on below arrow to start creating your checklist.

1 / City registration

Registering with the City of Encinitas is required to conduct business within the city limits. Also, it will enable you to take advantage of the incentives or credits that the city has to offer. First, let’s check if you need to register your business.

Will you receive any income outside of a salary from an employer?

If you receive 1099 forms, are starting a non-profit or trade association, or make income by leasing property, select Yes.

NOT SURE? LEARN MORE

You don’t need to register as a business if:

You are an employee of a company and only receive a W2 to report your income.
You make your income through the payment of dividends from corporate shares you hold or by interest paid from passive investments.

You do need to register as a business if:

You will work as an independent contractor and receive one or more 1099s, or report business earnings on IRS Form Schedule C.
Your business is a non-profit or trade association.
You will operate your business out of your home or a storefront.
You will lease residential or commercial property.

YES NO

Thanks for checking! It doesn’t look like you need to register as a business.

However, if you’re still unsure or have special circumstances not covered by this guide, you can verify your status by City’s Business Registration Program at (760) 663-2708 or permits@encinitasca.gov

Will you conduct business within the boundaries of the city of Encinitas?

The boundaries of the city of Encinitas are complex. We recommend you use E-Zoning map to verify your address even if you feel certain. Click below.

YES NO

2 / Business name

Continue to see if you need to register your business name with the County of San Diego.

Will your business name be the same as your personal name, with your first and last name only?

For example, if your business is called John Doe, select Yes. If it’s called John’s Barbershop, select No.

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A fictitious name or trade name is a business name that is different from your personal name, the names of your partners, or the officially registered name of your LLC or corporation.

If you decide to use a fictitious name, you must choose a name that no one else in San Diego County is using. Registering your name with San Diego County protects it from being used by anybody else.

Consider searching the internet and checking the US Patent and Trademark Office or the California Secretary of State’s Corporate Division to see if your name is being used in other areas. You can also check that the website address or URL for your business name is available.

All the links you need will be provided at the end of the Startup Guide, with your registration checklist.

YES NO

3 / Seller's permit and use taxes

Find out if you need to register with the State of California to report and pay sales taxes or to legalize your business entity.

Do you intend to sell any products that will be subject to sales tax, whether as a retailer, manufacturer or wholesaler?

For example, selling shampoo at a hair salon is subject to sales tax.

YES NO

Will you operate a service business and expect to have more than $100,000 in gross (pre-tax) receipts per year?

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Any business that receives over $100,000 a year in gross receipts is required to register with the State of California to report and pay use taxes. Use taxes apply when businesses purchase and use goods for which they did not pay sales taxes, for instance, if you purchased something online and were not charged taxes on those items. If you are not yet sure if you will transact more than $100,000 per year, you might consider selecting Yes and registering. All the links you need will be provided at the end of the Startup Guide, with your registration checklist.

YES NO

What type of business will you have?

Sole proprietor is the simplest business entity, but it requires that you take personal responsibility for all business matters. See additional information for a description of other business entities such as partnership, corporation, LLC and more.

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The legal structure of your business affects how much you pay in taxes and your level of legal responsibility for debts incurred by your business. Here are a few of the most common types of business structures:

A sole proprietorship is the simplest and most common structure to start a business. Sole proprietorships are owned and run by one individual, or a married couple, with no distinction between the business and the owner. The owner is entitled to all profits and is responsible for all of the business’s debts, losses and liabilities.

A partnership is a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.

A limited liability company (LLC) is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would.

A corporation is more complex and generally suggested for larger, established companies with several employees.

All the links you need will be provided at the end of the Startup Guide, with your registration checklist.

SOLE PROPRIETOR OTHER

4 / Employee Identification Number

Find out if you need to register with the U.S. Internal Revenue Service (IRS).

Will you have any employees?

A business needs an EIN to pay employees and to file business tax returns. Registering for an EIN is free and an easy way to protect your social security number.

NOT SURE? LEARN MORE

All businesses must register for an EIN with the exception of sole proprietors with no employees. Sole proprietors with no employees may opt to use their personal social security number to identify themselves with the federal government.

Obtaining an Employer Identification Number (EIN) is free. Your EIN will allow you to pay taxes, open bank accounts, and conduct other business activities.

All the links you need will be provided at the end of the Startup Guide, with your registration checklist.

YES NO

5 / Registration checklist

Congratulations! Here is your registration checklist.

Follow the steps below to register your business with the City, County, State, and Federal government. You may print or email this checklist to yourself.

Depending on the type and location of your business, you may also need to obtain additional permits and licenses - review the tips in the Plan section of the Business Portal. The City's Development Services Counters are also a great place to start if you want to find out more about the city's planning and building requirements, or call (760) 633-2710.

Also, the City of Encinitas frequently has contracting opportunities available. To learn more or register for alerts, please visit http://encinitasca.gov/bids

Good luck!

Please note that this guide does not substitute for legal or professional advice, and additional permits or registrations may be required depending on the circumstances of your business.

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