Starting a Business

Every business needs money to get off the ground. In fact 82% of businesses that fail do so because of a lack of cash flow, U.S. Bank found in a recent study. Your business plan should include a detailed estimate of the funds you’ll need to cover expenses for at least a year, so now it’s time to acquire the money.

If you aren’t wealthy enough to self-fund your business, you can choose from a number of other funding options. These can include a loan from the U.S. Small Business Administration, taking out a loan from a commercial bank, launching an equity crowdfunding campaign, or securing funding from an angel investor or venture capitalist group active in California.

An angel investor is a wealthy individual who invests their personal finances in a startup, typically in the beginning stages, whereas a VC is a group of investors that will fund a business throughout its existence.

Which route you choose depends on the specifics of your business: angel investors typically invest smaller sums to help get a startup off the ground, while VCs invest larger sums of money in exchange for a greater say in the operations of a business. Smaller startups usually opt to pursue funding from angel investors.

Another great resource for entrepreneurs is Marin Sonoma Impact Ventures

If you anticipate construction, even if minor, or a change in use from the previous occupancy at your location, it's important to understand the permit requirements and potential cost. After meeting with your architect or contractor to review your plans, contact our Building Division to discuss your project. Once we provide comments on the plans, you'll revise them and resubmit them to us. If there is a change in use at the proposed site, the Fire Department may also need to review the plans.

Make sure you discuss with a design professional the requirement regarding the  California Building Code, the Americans with Disability Act (ADA) and the Fire Code. Depending on the nature of your project you may need approval from the Design Review Commission and/or the Planning Commission. 

You'll need to take a few extra steps to get your restaurant ready in order to provide a safe and sanitary dining experience for your customers. Check out our Restaurants page to get more information on the steps listed below.

1. Make sure you comply with Marin County's health permit process

2. Submit construction plans to the County first and then to the City

3. Find out the water rates for your proposed location

 4. Find out the status of the Grease Collection System

 5. If you're selling alcohol, get a liquor license.

6. Apply for a Seller’s Permit

No matter what type of business you form, buying insurance coverage to protect yourself in the case of property damage or legal action is a good idea. In fact, businesses with employees are required by the federal government to have two types of insurance, while others are strongly encouraged or required at the state level, depending on your business type. Consult with a licensed insurance agent to find out which types of insurance you should get.

Required forms of insurance:

• Workers’ compensation: Covers medical costs and disability benefits if an employee is injured or becomes ill on the job.
• Unemployment insurance: Provides benefits to workers after a loss of job through no personal fault.

Recommended forms of insurance:

• Professional liability insurance: Covers losses as a result of property damage, medical expenses, libel, slander, and negligence claims.
• Commercial property insurance: Covers property damage to business owned properties and possessions as a result of fire, theft, or storm.
• Disability insurance: Provides short-term benefits for employees suffering an illness or injury. Required in certain states such as California.

You'll  need to register with the state and federal government and comply with all regulations related to corporate, payroll, income and sales taxes. Contact the state Franchise Tax Board and the federal Internal Revenue Service for their requirements. If you sell a product, the California Department of Tax & Fee Administration will help you determine whether you need a Seller’s Permit.

Establishing an identity on the web is an important investment in a business’s future development. Here are some key steps in the process:

• Register a domain name for a company website (You can use domain.com, Bluehost, GoDaddy.com, Namecheap.com). Design the website and fill it with content
• Create profiles on the popular social media services (Twitter, Facebook, Instagram)
• Register a Google profile for your business
• Create accounts on review sites such as Yelp, Google Reviews, and TripAdvisor

We know that starting a business is overwhelming. Check out these organizations that can assist you with training, networking and other resources to help get you on your way to starting and managing a successful business.

For general questions, contact our Economic Development Department

For training and advice contact the Small Business Development Center 

For marketing, networking and advocacy contact the local chambers of commerce including:

• San Rafael Chamber of Commerce
• Hispanic Chamber of Commerce of Marin
• North Bay Black Chamber of Commerce