Starting a Business in Downey

Welcome to Downey
This information was compiled in response to numerous inquiries that are received by the Chamber from people who are seriously considering starting their own business. We hope it will be helpful and wish you the best of luck in your new adventure.

Business License
Practically all businesses, professional and trades operating in Downey, are required to have a business tax certificate (business license). They may be obtained at Downey City Hall, 11111 Brookshire Ave., Downey, CA 90241. Phone (562) 904-7246.

Fictitious Business Names
Any business firm name that does not include the surname of the individual owning the business must file a Fictitious Business Name Statement with the County Clerk of the County in which the business is located and within 30 days of filing the statement, the registrant is required to publish this statement in a newspaper of general circulation in the County (four insertions, one a week for four weeks). Los Angeles County Clerk, 12400 Imperial Hwy., Norwalk, CA 90650. Call (562) 462-2177.

Seller's Permit
Every person planning to sell tangible personal property or lease tangible personal property must apply to the Department of Business Taxes, State Board of Equalization for a Seller's Permit. In filing for a Seller's Permit, the registrant must complete the Application for Seller's Permit and Registration as a Retailer, and Department of Benefit Payments, Registration as an Employer. State Board of Equalization, 12440 Imperial Hwy., Norwalk, CA 90650. Call (562) 466-1694.

Corporations
The necessary procedures and forms relating to the formation of a corporation can be obtained from the Secretary of State, 107 South Broadway, Room 4001, Los Angeles. Call (213) 897-3062.

State Requirements
A business is subject to the Unemployment Insurance Code if it employs more than one employee and has a payroll of $100 or more during the calendar year. Any business which pays an employee for his or her service is immediately subject to the California Income Tax Withholding Law. Register with the Department of Benefit Payments, 8280 E. Florence Ave., Downey, CA 90241. Call (562) 923-1237.

Federal Requirements
You should apply for a federal tax identification number. The application can be obtained from the Internal Revenue Service Office, 9050 Flair Dr., El Monte, CA. Call (800) 829-1040. They can also furnish you a Tax Guide for Small Business which explains employment taxes, income tax withholding from your employees, Social Security taxes, employees' tips, liability for tax withheld from employees, returns, deposits and payment of taxes.

Small Business Assistance
The Chamber is a U.S. Small Business Administration Small Business Resource Center and has many free publications on a variety of subjects pertaining to the operation of a business. In addition, free counseling sessions at the Chamber office are available through the Service Corps of Retired Executives (SCORE), sponsored by the SBA. Call (562) 923-2191 for an appointment.

Additional Contact Information

Filing Articles of Incorporation, Corporation Qualifications, Trade Name Registration, Trademark Application, Service Mark Application, Contact Sales Secretary of State, 107 South Broadway, Room 4001, Los AngelesCall (213) 897-3062.

Corporate Income Tax and Personal Income Tax - Franchise Tax Board, 245 West Broadway, #115, Long Beach.

Sales and Use Tax, Tax on Insurers, Sales Tax Permit, Use Fuel Tax, Property Tax, Motor Vehicle Transportation Tax - Board of Equalization, 12440 E. Imperial Hwy., Norwalk, CA 90650. Call (562) 466-1694.

Local Business Tax Certificate, Zoning and Building Permits - City of Downey, 11111 Brookshire Ave., Downey, CA 90241. Call (562) 904-7142.

Contractors License - Contractors State License, 245 West Broadway, Long Beach, CA. Call (562) 590-5331.

Unemployment Insurance, Disability Insurance, Labor Market Data, Training Programs, Placement Service - Employment Development Department, 12715 Pioneer Blvd., Norwalk, CA. Call (562) 868-3713.

Federal Labor Laws - United States Department of Labor, Wage and Hour Division, 300 S. Glendale Ave., Ste. 400, Glendale, CA 91205. Call (818) 240-5274.

Checklist for Going into Business
Have you tried to find out whether businesses like the one you want to open are doing well in Downey?

Do those people live in Downey?

Do they need a store like yours?

Do you know how much money you will need to get your business started?

Have you totaled how much of your money you can put into the business?

Do you know how much money you can get from your suppliers - the people you buy from?

Do you know where you can raise the rest of the money you need to start your business?

Have you figured out what net income per year you expect to get from the business?

Count your salary and your profit on the money you can put into the business. Can you live on less than this so you can use some of it to help your business grow?

Have you presented your plans to a banker?

Have you found a good location for your business?

Can people get to it easily from parking spaces, bus stops or their homes?

Have you checked with the City Planning Division about the zoning required for your business?

Do you know what licenses & permits you need?

Do you know what business laws you have to obey?

Do you know a lawyer to go to for advice and help?

Have you planned a system of records that will keep track of your income and expenses?

Have you figured out how to keep your payroll records and take care of tax reports and payments?

Do you want to own a business badly enough to keep working long hours without knowing how much money you will end up with?

Have you worked in a business like the one you want to start?

Have you ever had any business training in school?

Does your family go along with your plan to start a business of your own?

If you answered all these questions YES, you've done some hard work and serious thinking. But, opening the front door and shouting, "come buy my product or service" isn't enough. Approximately 80% of all new business ventures fail in the first two years. The successful enterprise is one which is started because of deep interest or experience of its organizers. The single most important element in success is education or experience in the area of management. Nine out of ten failures could be prevented if the owners have a better understanding of the management requirements and practices necessary to run a business successfully.

PREPARED BY:
DOWNEY CHAMBER OF COMMERCE
11131 Brookshire Ave.
Downey, CA 90241

Telephone: (562) 923-2191
FAX: (562) 869-0461

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© 2003 Downey Chamber of Commerce