San Jose, CA Business License Guide

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The Ultimate Business License Guide for San José, CA (City + State + County)

Last updated: August 2025

This is a practical, San José–specific playbook to get your business legally set up, licensed, and open without surprises. It gives exact steps, links to official pages, real world examples, realistic timelines, costs where the government publishes them, and backup options if something stalls.

Quick help (start here)

What “business license” means in San José

In San José, the “business license” is the City’s Business Tax Certificate. Most businesses operating in city limits must register and pay the business tax. Some industries also need extra approvals (zoning, health permits, fire permits, state professional licenses).

  • City business tax registration is not a state tax registration or an exemption from state rules. You may need multiple approvals.
  • If you do business in San José even from outside the city (deliveries, jobsites, mobile services), you may still need to register.
  • San José’s business tax is separate from your California seller’s permit (sales tax) and separate from California income/franchise tax.

Official references:

At‑a‑glance checklist (what to do first, in order)

Use this as your roadmap. Click through each official link. Don’t sign a lease before you check zoning.

Action Where to do it Cost (official) When
Pick a business structure (sole prop, LLC, corp) bizfile Online — CA Secretary of State Varies by entity filing; check SOS fee schedule Before you file anything else
Get an EIN (or use SSN if sole prop without employees) IRS EIN online $0 Same day
Check San José zoning + use rules for your site or home San José PBCE Varies by permit Before signing a lease or building out
Register for seller’s permit if selling taxable goods/food CDTFA permits $0 (security deposit may be required) Before sales
File a Fictitious Business Name (DBA) if needed Santa Clara County Clerk-Recorder — FBN County-set fees; see site Before opening bank account/marketing
Apply for City of San José Business Tax Certificate San José Business Tax portal City-set rates; see rate table Within city’s deadline after starting
Industry permits (health, fire, ABC, contractor, childcare, etc.) See “Industry-specific permits” section Varies Before opening/operating
Register for CA payroll taxes (if hiring) EDD Payroll Taxes $0 Before first payroll
Know California franchise/income taxes FTB minimum franchise tax Corporations & LLCs: minimum $800/yr; LLC fee tiers apply First year and annually

Notes:

  • EIN is always free with IRS.
  • CDTFA seller’s permit is free; CDTFA may require a security deposit. See CDTFA – Permits, Licenses, and Certificates (accessed Aug 2025).
  • California minimum franchise tax: corporations and LLCs owe at least 800∗∗annually.See[FTB—Minimumfranchisetax](https://www.ftb.ca.gov/file/business/minimum−franchise−tax.html)and[FTB—LLCannualfee](https://www.ftb.ca.gov/file/business/types/limited−liability−company/llc−annual−fee.html)(accessedAug2025).LLCfeetiers:∗∗800** annually. See [FTB — Minimum franchise tax](https://www.ftb.ca.gov/file/business/minimum-franchise-tax.html) and [FTB — LLC annual fee](https://www.ftb.ca.gov/file/business/types/limited-liability-company/llc-annual-fee.html) (accessed Aug 2025). LLC fee tiers: **0 under 250,000grossreceipts;∗∗250,000 gross receipts; **900**, 2,500∗∗,∗∗2,500**, **6,000, $11,790 at higher tiers (see FTB page for current thresholds).

What to do if this doesn’t work:

  • If an online portal is down, use the agency’s paper forms or call their published help numbers (City 311 / 408-535-3500, CDTFA 1-800-400-7115, EDD 888-745-3886).

Step 1: Choose your structure and (if needed) form your entity

Most people start as a sole proprietorship or form an LLC or corporation. Your choice affects taxes, liability, and what you have to file.

  • Form LLCs/corporations with the California Secretary of State.
  • Some professional services require a Professional Corporation (ask your licensing board).
  • If you use a trade name and are a sole prop or partnership, file a Fictitious Business Name.

Official sources:

Realities and costs:

  • LLCs and corporations pay a minimum California franchise tax of $800 each year. See FTB minimum franchise tax (accessed Aug 2025).
  • LLCs may also owe an LLC annual fee based on California gross receipts: currently tiered at 900∗∗,∗∗900**, **2,500, 6,000∗∗,or∗∗6,000**, or **11,790 at higher tiers. See FTB LLC annual fee (accessed Aug 2025).
  • Formation filing fees and processing times vary. Check current fees and SOS processing times (accessed Aug 2025).

Real world example:

  • A San José mobile bike repair starts as an LLC to limit personal liability. They file Articles of Organization on bizfile Online. They budget $800/year minimum franchise tax and check the LLC fee tiers.

What to do if this doesn’t work:

  • If you can’t form quickly, you can operate as a sole prop under your legal name while you line up capital, but you still need to register for taxes and file an FBN if using a trade name. Talk to a CPA or legal aid clinic for entity choice help (see SBDC Silicon Valley and SCORE Silicon Valley, accessed Aug 2025).

Step 2: Get an EIN (Employer Identification Number)

  • Most entities (LLCs, corporations) need an EIN. Sole proprietors often get one to avoid using an SSN.
  • The IRS EIN application is online, free, and instant for most applicants.

Official source:

Cost and timeline:

  • $0. Often same day.

What to do if this doesn’t work:

  • If online is unavailable, use IRS Form SS‑4 by mail or fax. For help, call the IRS Business & Specialty Tax Line 800-829-4933.

Step 3: Confirm San José zoning and site approvals (don’t skip)

Do this before you sign a lease or buy equipment. You need to know whether your use is allowed at your address and what permits/inspections will be triggered.

  • Check zoning for your address.
  • Ask about parking, signage, hours, and any special use permits.
  • For home businesses, check San José’s Home Occupation rules.

Official sources:

Reality check:

  • Even “simple” uses can need a building permit for tenant improvements, ADA upgrades, grease interceptors (food), electrical load increases, or fire sprinklers. Set aside time and budget for this.
  • Signs require separate sign permits. Don’t order signage until permitted.

What to do if this doesn’t work:

  • Call City 311 / 408-535-3500 and ask for PBCE. Bring a short “scope of work” and the exact address. If your use isn’t allowed, ask about alternative zoning districts or whether a Conditional Use Permit is possible.

Step 4: Register for a California seller’s permit (if you sell taxable stuff)

If you sell tangible goods in California (retail or wholesale), or you sell prepared food, you need a seller’s permit from CDTFA. Many online sellers also need it.

Official sources:

Costs and notes:

  • Application is $0. CDTFA may require a security deposit depending on risk. Keep good records; sales tax filings are frequent (often quarterly or monthly).
  • Food trucks, restaurants, and cafes need seller’s permits and also health permits (see next sections).

What to do if this doesn’t work:

  • Call CDTFA at 1-800-400-7115 (TTY: 711) and ask for help choosing the right accounts (sales/use tax, tobacco, alcohol, etc., if applicable).

Step 5: File a Fictitious Business Name (DBA) in Santa Clara County (if using a trade name)

If you operate as a sole proprietor or general partnership and use a name that doesn’t include your full legal surname, you must file a Fictitious Business Name (FBN). LLCs/corps using a different name than the registered entity name also file.

  • After filing, you must publish your FBN in a newspaper of general circulation once a week for four successive weeks, starting within 30 days after filing, and file proof of publication.

Official sources:

Costs and timelines:

  • County sets filing fees and certified copy fees; publication costs vary by newspaper. Check the Clerk‑Recorder link above for current amounts and accepted papers.

What to do if this doesn’t work:

  • If you miss the 30‑day publication window, file a new FBN and restart publication. The Clerk‑Recorder can clarify steps via the page above.

Step 6: Apply for the City of San José Business Tax Certificate

This is the City’s business license. Most businesses that operate in San José must register, pay the business tax, and renew each year.

Key points:

  • Register within the City’s timeline after starting business activity in San José (often within 30 days; confirm on the City page below).
  • Taxes may be based on business type and/or number of employees.
  • You must update your account when your location, ownership, or headcount changes.

Official source:

Costs and deadlines:

  • San José publishes its current rates and categories on the page above. See the “Rates” or “Fee Schedule” section for exact amounts and due dates. If you can’t find the rate for your category, call 311 / 408-535-3500 and ask for Finance – Business Tax.
  • Late payment penalties apply. The City’s page lists penalty percentages and timelines.

Documents you’ll typically need:

  • Business legal name and owner info (EIN/SSN)
  • Address(es) where you operate in San José
  • NAICS or business activity description
  • Employee count or other tax basis info requested by the portal

Real world example:

  • A Willow Glen boutique hires 2 part‑time employees and registers for the City Business Tax Certificate after signing the lease and confirming retail is allowed at the address. They keep their account updated as staffing changes.

What to do if this doesn’t work:

  • If the online portal won’t accept your category, request help through 311 / 408-535-3500 or visit the Finance Department counter (see the City page above for the current location and hours).

Step 7: Industry‑specific permits and inspections (food, fire, alcohol, contracting, care, etc.)

Depending on your activity, you may need more approvals.

Industry/Activity Permit/License Agency Where to start
Restaurants, cafés, food trucks, caterers, markets Health permit (fixed/microenterprise kitchen; mobile food facility; temporary food facility) Santa Clara County Environmental Health Santa Clara County — Environmental Health Food Program (start at CEPA site; accessed Aug 2025)
Food manufacturing/packaging Processed food registration, cannery approvals CA Dept. of Public Health CDPH Food and Drug Branch (accessed Aug 2025)
Alcohol (beer/wine/spirits on/off sale) ABC license (Type varies) CA Dept. of Alcoholic Beverage Control ABC — How to get a license and ABC fees (accessed Aug 2025)
Construction (B, C‑trades) Contractor license CA Contractors State License Board CSLB — Apply for a license (accessed Aug 2025)
Salon/barber State cosmetology/barbering license + city business tax CA Board of Barbering and Cosmetology BBC — Licensing (accessed Aug 2025)
Child care Family or center child care license CA Community Care Licensing CCLD Child Care Licensing (accessed Aug 2025)
Hazardous materials, labs, certain manufacturers CUPA/HazMat permits Santa Clara County CUPA Santa Clara CUPA Program (accessed Aug 2025)
Assembly, high occupancy, hazmat use Fire operational permits, inspections San José Fire Department SJFD Fire Prevention Bureau (accessed Aug 2025)
Sidewalk use, parklets Encroachment/use permits City of San José City Public Works — Permits (accessed Aug 2025)

Notes and realities:

  • ABC requires a 30‑day public notice posting and a neighborhood input period. See ABC — Application process (accessed Aug 2025).
  • Health permit categories and fees vary; read the county’s “Food Program” pages for exact requirements.
  • Many build‑outs trigger Fire and Building inspections—plan for schedule lead times.

What to do if this doesn’t work:

  • Use CalGold to confirm all permits for your NAICS and location. If you hit conflicting guidance, ask the City PBCE to identify the “lead agency” for your case.

Step 8: Payroll and employment requirements (if you’ll have staff)

  • Register with EDD for employer payroll taxes before you run payroll.
  • Post California and San José workplace notices.
  • Pay at least the higher of San José’s local minimum wage or the California minimum wage.
  • Carry Workers’ Compensation insurance if you have employees.

Official sources:

Reality check:

  • San José’s local minimum wage updates annually. Use the City’s page above for the current per‑hour rate and the official poster.
  • Get an insurance broker to quote Workers’ Comp early; rates vary by class code.

What to do if this doesn’t work:

  • If payroll setup is delayed, use a reputable payroll provider that registers and files with EDD on your behalf. Verify they still require you to sign employer forms.

Taxes you’ll likely owe (beyond the City business tax)

California taxes are separate from your City certificate.

Tax Who pays Amount (official, where available) Source
California minimum franchise tax Corporations and LLCs doing business in CA $800 per year minimum FTB — Minimum franchise tax (accessed Aug 2025)
LLC annual fee LLCs with CA gross receipts over $250,000 Tiers: 900∗∗,∗∗900**, **2,500, 6,000∗∗,∗∗6,000**, **11,790 depending on receipts FTB — LLC annual fee (accessed Aug 2025)
Sales and use tax Sellers of taxable goods/food File as assigned (monthly/quarterly/annual) CDTFA — Sales & Use Tax (accessed Aug 2025)
Employer payroll taxes Employers with employees Withhold and remit unemployment, disability, PIT EDD — Payroll Taxes (accessed Aug 2025)
Federal income/payroll taxes All applicable businesses Varies by entity and payroll IRS — Businesses (accessed Aug 2025)

What to do if this doesn’t work:

  • If you’re cash‑short, file on time even if you can’t pay. Most agencies reduce penalties when you file timely and request a payment plan. See IRS, FTB, CDTFA payment plan pages.

City of San José minimum wage, posters, and local rules

  • San José has a local minimum wage that may be higher than the state rate. Employers must post the City’s official minimum wage notice.
  • The City can enforce local wage rules.

Official source:

What to do if this doesn’t work:

  • If you can’t find the current rate, call 311 / 408-535-3500 and ask for the Office of Employee Relations minimum wage poster link.

Real world examples (San José scenarios)

  • Home‑based Etsy seller (Cambrian): Registers for a City Business Tax Certificate because she ships products from her home address. She does not need a seller’s permit if she sells only exempt items, but since she sells taxable crafts, she registers with CDTFA for a seller’s permit. She checks San José Home Occupation rules to confirm pickup traffic and signage limits. Resources: San José Business Tax, CDTFA permits, PBCE.
  • Food truck (Berryessa events): Registers with CDTFA, obtains a mobile food facility health permit from Santa Clara County Environmental Health, confirms allowed vending zones and Fire permits for propane, and registers for the City Business Tax. Resources: Santa Clara County Environmental Health, SJFD Fire Prevention, San José Business Tax.
  • General contractor (Alum Rock jobsites): Holds a CSLB license, pulls building permits for each job as required, carries Workers’ Comp if employees, registers with the City Business Tax since work occurs inside city limits. Resources: CSLB, PBCE.
  • Wine bar (Downtown): Applies for an ABC license (Type depends on menu), posts the ABC notice for 30 days, completes a building/tenant improvement permit, obtains Fire approval, gets a City Business Tax Certificate, registers with CDTFA, and tracks San José minimum wage for staff. Resources: ABC, PBCE, SJFD, CDTFA, City minimum wage.

Budget and timelines you should plan for

Not everything publishes a fixed price, but some costs are official and predictable.

Item Typical timing Cost info (official)
EIN Same day online $0 — IRS EIN
Seller’s permit Same day to a few days $0 (deposit may apply) — CDTFA
CA minimum franchise tax Annual $800 — FTB
LLC annual fee Annual, due with return Tiers: 900∗∗–∗∗900**–**11,790 — FTB
San José Business Tax Register within City deadline; annual renewal City‑published rate schedule — San José Finance
FBN filing + publication Filing + 4 weeks publication County fee + newspaper rates — Santa Clara Clerk‑Recorder
Health permits (food) Application + inspection County schedule — Santa Clara Environmental Health
ABC license Weeks to months (notice + review) Fee by license type — ABC fee schedule

Sequencing: the safest order to avoid backtracking

Do this Why first
Confirm zoning/site feasibility Avoids signing an unworkable lease
Decide structure; get EIN Needed across applications and banking
Seller’s permit (if taxable sales) Required before making sales
Industry permits (health/fire/ABC) Longest lead times; drive design/layout
FBN (if needed) Needed for bank account and compliance
San José Business Tax Certificate Required to operate in city limits
Payroll registration + labor posters Required before first paycheck

What to do if this doesn’t work:

  • If one step blocks another (for example, health requires final building inspection), ask the agency for a pre‑inspection or phased review to surface issues early.

Common mistakes to avoid (San José–specific)

  • Registering for the City Business Tax too late and getting hit with penalties. Register within the City’s required timeframe. See San José Business Tax page.
  • Signing a lease before checking PBCE on allowed use, parking counts, venting, grease interceptors, and ADA upgrades.
  • Forgetting to publish your FBN within 30 days of filing (BPC §17917).
  • Assuming the state wage rate applies; San José’s local minimum wage may be higher. Use the City minimum wage page.
  • Skipping Fire permits for alcohol heaters, hood systems, compressed gases, or assembly occupancy.
  • Not registering with CDTFA when selling online—California nexus rules are broad.
  • Thinking an LLC avoids the $800 minimum. It doesn’t. See FTB.
  • Using the wrong NAICS/activity on applications, triggering delays or wrong tax basis.
  • Missing annual renewals (City business tax, health permits, ABC, etc.). Put all renewals on a calendar with reminders.
  • Not updating your City account after moving or changing ownership—this can lead to notices you don’t see and penalties.

What to do if this doesn’t work:

  • If you’ve already erred, contact the agency proactively. Many will reduce penalties if you come forward and correct quickly.

Inclusivity, diversity, and accessibility resources (San José + California)

Grants change often—focus on certification and free advising to access contracts and capital. Language help is available.

Language access:

  • San José 311 provides translation assistance. Dial 311 (or 408-535-3500) and request your language. (accessed Aug 2025)

What to do if this doesn’t work:

  • If you hit a language barrier in a state portal, ask an SBDC advisor to sit with you during the application. Many centers can schedule bilingual sessions.

FAQs (San José and California)

  • Do I need a City of San José Business Tax Certificate if I work from home?
    • Usually yes, if you are operating a business from an address in San José. Also follow Home Occupation rules. See San José Business Tax and PBCE (accessed Aug 2025).
  • I only sell online. Do I still need a seller’s permit?
  • What’s the current San José minimum wage?
    • It changes annually. Check the City’s official minimum wage page for the current per‑hour rate and required poster: San José Minimum Wage (accessed Aug 2025).
  • How fast can I get a City Business Tax Certificate?
    • Many registrations complete online quickly if straightforward. If the City needs more info, expect delays. Use the City portal above; for status questions call 311 / 408-535-3500.
  • Is the California franchise tax $800 due in my first year?
    • Corporations and LLCs owe a minimum of $800 annually. For first‑year applicability and exceptions, see FTB — Minimum franchise tax (accessed Aug 2025).
  • Do I need to publish my DBA?
    • Yes. In California, after filing an FBN, you must publish once weekly for four successive weeks within 30 days of filing. See BPC §17917 (accessed Aug 2025).
  • I have no employees. Do I need Workers’ Comp?
    • California generally requires Workers’ Comp for employees. Sole proprietors without employees are usually not required, but some licenses (e.g., CSLB) have specific rules. Check DIR — Employers and CSLB — Workers’ Comp (accessed Aug 2025).
  • Do I need both ABC and CDTFA approvals to serve alcohol?
  • I work at job sites all over the Bay Area. Which cities do I register with?
    • Many cities require a business tax certificate if you perform work within their limits. For San José, see City Business Tax (accessed Aug 2025). Use CalGold to check other cities.
  • How do I find all permits for my specific business?
    • Use CalGold. Enter your city and business type. It lists local, county, and state agencies with links and contacts (accessed Aug 2025).

Documents checklist (what to gather before you start forms)

  • EIN letter or SSN (sole prop without EIN)
  • Legal entity documents (Articles, Statement of Information if filed)
  • Lease, site plan, or proof of address (for storefronts)
  • Trade name evidence (FBN filing receipt if applicable)
  • Menu/process flow or equipment list (for food businesses)
  • Employee headcount estimates and start date
  • Prior permits/licenses (if relocating or expanding)

What to do if this doesn’t work:

  • If you’re missing something, start with the items you have and save your application progress; most portals let you return. Don’t guess; wrong entries delay review.

Who to call and where to click (San José–focused directory)

Topic Agency Phone Link
City Business Tax Certificate City of San José Finance 311 (or 408-535-3500) San José Business Tax portal
Zoning/building permits San José PBCE 311 / 408-535-3500 PBCE homepage
Fire permits/inspections San José Fire — Fire Prevention 311 / 408-535-3500 SJFD Fire Prevention
Fictitious Business Name Santa Clara County Clerk‑Recorder See website FBN filing
Food health permits Santa Clara County Environmental Health See website Food Program
Seller’s permit (sales tax) CDTFA 1-800-400-7115 CDTFA permits
Payroll registration EDD 888-745-3886 EDD Payroll Taxes
EIN IRS 800-829-4933 IRS EIN
Contractors licensing CSLB 800-321-2752 CSLB Applicants
Alcohol licensing ABC See office directory ABC Licensing

Note: Where a specific office phone is not listed above, use the agency’s main line or office locator linked to the official page to get the most current contact.

Your first 30, 60, 90 days: a realistic timeline

  • Days 1–7
    • Pick structure, get EIN, check San José zoning, start site search.
  • Days 8–21
    • Apply seller’s permit (if needed), outline build‑out with PBCE, start health/fire pre‑application if food or assembly, file FBN.
  • Days 22–45
    • Submit building permit plans (if build‑out), apply for City Business Tax Certificate, begin health plan check, publish FBN (within 30 days of filing).
  • Days 46–90
    • Complete inspections (building/fire/health), ABC posting and background (if alcohol), register for payroll and post workplace notices, soft‑open once approvals are issued.

What to do if this doesn’t work:

  • Ask agencies whether partial operations are allowed (for example, retail without the kitchen open) and what specific approvals you need to begin limited service.

Key compliance after you open

  • Calendar your renewals: City business tax, health permit, ABC license, State filings.
  • Track headcount or other tax basis changes and update the City account promptly.
  • Monitor San José minimum wage updates and post the latest notice each January.
  • Keep sales tax returns current with CDTFA; reconcile POS reports monthly.
  • For LLCs/corps, file the Statement of Information with the Secretary of State on time.

What to do if this doesn’t work:

  • If you miss a deadline, call the agency right away and ask about penalty relief or late renewal procedures.

What to bring to the bank to open your business account

  • EIN letter (or SSN if sole prop) + government ID
  • Filed entity docs (Articles/Operating Agreement/Bylaws) or FBN filing/ publication proof for sole props
  • City Business Tax Certificate (or application receipt)
  • Lease with your business name and address

Tip: If the banker asks for something odd, show them the City Business Tax Certificate and Secretary of State filings (if applicable). That usually clarifies the entity and name.

What to do if this doesn’t work:

  • If one bank blocks you, try a community bank or credit union in San José. Bring the same packet.

Source list with quick descriptions (click‑through)

“If nothing else, do these three things this week”

  • Confirm your address is zoned for your intended use with PBCE before signing anything.
  • Get an EIN and set up a business bank account to keep finances clean.
  • Register for the City of San José Business Tax Certificate within the required time to avoid penalties.

What to do if this doesn’t work:

About This Guide

  • Purpose: Give San José business owners a clear, no‑nonsense path to getting legally set up with city, county, state, and federal requirements.
  • Approach: Links go to official government pages or well‑established technical assistance organizations. Fees and figures are only included when published by an official source; otherwise a direct link is provided so you can see current amounts.
  • Sources: All sources above link to the City of San José, Santa Clara County, California state agencies (CDTFA, EDD, FTB, DIR, ABC, CSLB), the IRS, and official code (BPC). Links were validated as of August 2025.

Disclaimer

This guide is for general information only and is not legal, tax, or accounting advice. Government rules, fees, and processes change. Always confirm current requirements, fees, deadlines, and forms with the City of San José, Santa Clara County, and the relevant California and federal agencies linked in this guide. If you have specific questions about your situation, consult a qualified professional.