The ultimate Sacramento, CA business license and permits guide (no fluff, just what to do)
Last updated: September 2025
This guide is built for people who need to actually get licensed in the City of Sacramento, start taking payments, and stay compliant. It focuses on what steps come first, who to contact, what documents you’ll need, real-world timelines, and official links you can click and trust.
Important note on scope: Sacramento has multiple governments and agencies. Most businesses inside Sacramento city limits need a City Business Operations Tax Certificate (what many call a “business license”), plus state registrations (seller’s permit, payroll, etc.) and sometimes county or state health/special permits. Use the checklists and tables below to quickly find your path.
Quick help (fast answers and official links)
- City business license (Business Operations Tax Certificate) — City of Sacramento Revenue Division online portal. If you’re operating in city limits, start here.
City of Sacramento Revenue Division — Business Tax portal (official) (overview and online services; accessed September 2025) - Unsure if your address is inside city limits? Check your address first.
City of Sacramento address/parcel tools (official) (maps and planning resources; accessed September 2025) - Do I need a seller’s permit (sales tax)? If you sell tangible goods in California, yes — the seller’s permit is $0 to obtain from CDTFA.
CDTFA permits and licenses (official state portal) (apply online; accessed September 2025) - Hiring employees? You must register with EDD once you pay more than $100 in wages in a calendar quarter; do it within 15 days.
EDD employer registration (official state) (requirements and registration; accessed September 2025) - Food, tattoo, pool, hazmat, or other health permits in Sacramento County (including City of Sacramento)?
Sacramento County Environmental Management Department (EMD) — Permits (official) (permit categories and fees; accessed September 2025) - Contractors: You need a CSLB license if a project is $500 or more in labor and materials.
CSLB — Who needs a license (official) (requirements; accessed September 2025) - Alcohol sales?
CA Department of Alcoholic Beverage Control — Licensing (official) (license types, fees, and application; accessed September 2025) - One-stop permit search for your industry/location:
CalGOLD — California permits lookup (official) (enter your business type and city; accessed September 2025) - Need free 1‑on‑1 help starting or licensing in Sacramento?
Capital Region SBDC — no‑cost advising (SBA network) (advising and workshops; accessed September 2025)
What you must do first (don’t skip this)
- Confirm your business location (inside City of Sacramento, another city, or unincorporated Sacramento County). This controls which city or county license you need.
- Pick your legal structure (sole proprietor, partnership, LLC, or corporation).
- Register required state tax accounts (seller’s permit and/or employer registration) before you open.
- Apply for the City of Sacramento Business Operations Tax Certificate (if inside city limits). This is the city “business license.”
- Obtain any planning/zoning clearances (home occupation permit if home-based), fire/building permits, and industry permits (health, ABC, cannabis, contractor, etc.) before opening.
- Understand ongoing taxes and renewals so you don’t get hit with penalties.
The sections below walk each of these with quick steps, official links, documents required, realistic timelines, and plan B options.
Sacramento at a glance: Which government licenses you?
Use this quick table to figure out whose license you need for your street address. Then jump to the right section.
| Where you operate (physical location) | You likely need these before opening | Who to contact | How to check |
|---|---|---|---|
| Inside City of Sacramento limits | City Business Operations Tax Certificate; zoning/home occupation permit; possibly fire/building permits | City of Sacramento Revenue Division (official) and City Community Development — Planning & Building (official) | City maps and planning tools (official) |
| Inside another city (e.g., Elk Grove, Folsom) | That city’s business license; local permits | Your city hall | That city’s official website |
| Unincorporated Sacramento County | Sacramento County business license (if required), plus county permits | Sacramento County (official) | Use address lookup or call county departments |
| Online-only but operating from a home in City of Sacramento | City Business Operations Tax Certificate + home occupation permit | City of Sacramento Revenue Division (official) and City Planning — Home Occupation (official) | Confirm with Planning if your use is allowed |
Sources: linked agency pages above (accessed September 2025).
What to do if this doesn’t work:
- If boundaries are confusing, contact City Planning via Planning contact page (official) and call 311 for a live person to route you. For county locations, start at Sacramento County — Departments (official).
Step 1 — Choose your business structure and name (before licenses)
Most important action: Decide your legal structure and name first. Many license applications will ask for this, and changing it later can trigger re-filings.
- Sole proprietor/partnership: No state formation filing. If you use a name different from your legal name, file a Fictitious Business Name (FBN) with Sacramento County.
- LLC or corporation: Register with the California Secretary of State. You’ll need your entity number for tax accounts and city licensing.
- EIN: Most banks will require an EIN. Sole proprietors without employees or excise taxes can sometimes use SSN, but an EIN is still advisable for banking.
Helpful official links:
- bizfile Online — CA Secretary of State (official) (form LLCs/corps, statements of information; accessed September 2025)
- IRS — Apply for an EIN (official) (free EIN; accessed September 2025)
- Sacramento County Clerk/Recorder — Fictitious Business Name (official) (FBN filing overview and forms; accessed September 2025)
- FBN legal requirement to publish: California requires publication once per week for four weeks in an adjudicated newspaper after filing. See California Business & Professions Code §17917 (official statute) (requirements; accessed September 2025)
Documents you’ll likely need:
- Formation documents (if LLC/corp): Articles and stamped approval from the Secretary of State.
- FBN filing receipt (if using a trade name as a sole proprietor/partnership).
- Government-issued ID.
- EIN letter (CP 575) from IRS.
Real-world tip:
- Bank accounts: Most banks in Sacramento will ask for your city Business Operations Tax Certificate to open a business account. This isn’t a state rule, but it’s a common banking policy. Call your bank first so you can sequence your filings smartly.
What to do if this doesn’t work:
- If you’re stuck on choosing structure, request free advising through Capital Region SBDC (SBA network) (accessed September 2025), or use the Secretary of State’s entity comparison resources (official) (program overviews; accessed September 2025). Consult a CPA or business attorney for tax and liability advice.
Step 2 — Register required state tax accounts (before city licensing)
Most important action: Get your seller’s permit (if applicable) and employer accounts set up before you open for business.
State accounts you may need:
- Seller’s Permit (sales tax) — required if you sell or lease tangible personal property at retail in California. The permit itself costs $0. CDTFA may require a security deposit case-by-case.
CDTFA permits and licenses (official) (apply online; accessed September 2025) - Employer Registration (EDD) — register within 15 days of becoming an employer (paying more than $100 in wages in a calendar quarter).
EDD payroll taxes — Register as employer (official) (requirements, e-Services; accessed September 2025) - Alcohol licenses (if applicable) — ABC requires state licensure for alcohol sales.
CA ABC — Licensing (official) (license types and application steps; accessed September 2025) - Special industry accounts — e.g., e-waste, tire fees, tobacco, hazardous materials.
CDTFA Special Taxes and Fees (official) (program list; accessed September 2025)
Table: Common California tax and license accounts for Sacramento businesses
| Purpose | Who needs it | Cost to apply | When to apply | Official link |
|---|---|---|---|---|
| Seller’s Permit (CDTFA) | Selling tangible goods | $0 (deposit may apply) | Before first sale | CDTFA permits (official) |
| Employer Registration (EDD) | Paying > $100 in wages in a calendar quarter | $0 | Within 15 days after you become an employer | EDD employer (official) |
| Alcohol license (ABC) | Selling alcohol | Varies by license | Well before opening | ABC licensing (official) |
| Special taxes/fees (CDTFA) | Fuel, tobacco, waste, etc. | Varies | Before first activity | CDTFA taxes/fees (official) |
Sources: linked agency pages (accessed September 2025).
What to do if this doesn’t work:
- Call CDTFA Customer Service at 1‑800‑400‑7115 for permit questions (official number on CDTFA Contact — accessed September 2025).
- Use EDD’s Contact Payroll Taxes page (official; accessed September 2025) for registration issues.
Step 3 — Apply for the City of Sacramento Business Operations Tax Certificate (city “business license”)
Most important action: If your business operates inside City of Sacramento limits, obtain a Business Operations Tax Certificate (BOTC) from the City Revenue Division.
What it is:
- Sacramento uses a Business Operations Tax system rather than a simple flat “license.” You register your business, select your classification, and pay the tax according to the city’s schedule. You’ll receive the certificate the public often calls a “business license.”
Where to apply:
- City of Sacramento Revenue Division — Business Tax (official portal) (apply, renew, pay; accessed September 2025)
Eligibility:
- Any business, contractor, rental property operation, or home-based business physically operating within city limits generally must register and pay business operations tax. Confirm your location using the city’s planning tools if unsure.
Required documents:
- Legal name and business name (FBN if applicable).
- Business address in the city (or outside if doing business within the city).
- Federal EIN or SSN (per your business type).
- State seller’s permit number (if you sell taxable goods).
- Professional license number (if your industry requires it).
- Estimated gross receipts or other info needed by your classification.
Fees and taxes:
- The city’s business operations tax rates vary by business classification (e.g., retail, professional services, contractors, etc.). The city publishes the current schedule.
Check the current schedule on the City Revenue Division — Business Tax page (official) (accessed September 2025) for exact amounts.
Timeline:
- Online applications are commonly processed in a few business days after all required clearances are met. If Planning or other departments must review your location/use, allow additional time.
Reality check:
- Don’t assume this is the only city step. Many businesses also need a zoning clearance or home occupation permit, and some require Fire/Building/EMD approvals. Applying for the BOTC early is good, but do not open until all required permits are issued.
What to do if this doesn’t work:
- Use Sacramento’s 311 to reach the Revenue Division or be routed to the correct department. You can also start at the Revenue Division homepage (official) (accessed September 2025) and use posted contact options.
Step 4 — Zoning, home-based businesses, and building/fire approvals
Most important action: Confirm your use is allowed at your address before you sign a lease or open at home.
City zoning/home occupation:
- Home-based businesses inside city limits generally need a Home Occupation Permit and must follow rules (traffic, signage, noise, storage, etc.).
City of Sacramento Planning — Home-based business info (official) (policies and permits; accessed September 2025) - Commercial spaces: Zoning must allow your business type, and you may need a Planning clearance or conditional use permit (CUP) if your use is not permitted by right.
Building/Fire:
- Tenant improvements, new signs, changes to exits, hood systems, electrical or plumbing — all can trigger building permits and Fire review.
City of Sacramento Building Division — Permits (official) (permit center; accessed September 2025) - Fire permits and inspections may be required for assembly uses, restaurants, hazardous materials, and more.
Sacramento Fire Department — Prevention (official) (requirements; accessed September 2025)
Air quality:
- Certain operations (spray booths, gasoline stations, generators) need permits from the air district.
Sacramento Metropolitan Air Quality Management District — Permitting (official) (accessed September 2025)
Street/sidewalk use:
- Outdoor dining, A-frame signs, and sidewalk vending have separate rules.
City Right-of-Way/Outdoor Use — Public Works (official) (permits; accessed September 2025)
Common documents:
- Site plan, floor plan, equipment list, ventilation details (for food), load calculations (for electrical), sign drawings, lease letter.
Timeline:
- Planning clearance: often 1–4 weeks depending on complexity.
- Building permit plan check: small projects may be 2–6 weeks; larger can take longer.
- Fire inspections: often scheduled within 1–3 weeks after you’re permit-ready.
Plan ahead:
- Talk to Planning before you sign a lease. Older buildings may need expensive upgrades to meet code for your use.
What to do if this doesn’t work:
- Call 311 to reach Planning/Building. For specialized help, request a preliminary review meeting via the Community Development Department (official) (accessed September 2025).
Step 5 — Health-related permits (food, body art, pools, hazardous materials)
Most important action: If you’re in food service, body art, pools/spas, or handle hazardous materials, start with Sacramento County EMD. They handle health permits across the county, including inside the City of Sacramento.
Where to start:
- Sacramento County Environmental Management Department — Environmental Health (official) (programs and permits; accessed September 2025)
Examples:
- Restaurants, food trucks, markets, cottage food (Class A/B), temporary food events.
- Body art (tattoo, permanent makeup), medical waste generators.
- Public pools and spas.
- Hazardous materials business plans (HMBP), underground storage tanks.
Fees:
- EMD posts fee schedules by program annually. Amounts vary by facility type and size.
Check current fees and forms on the EMD site: EMD Permits and Fees (official) (accessed September 2025).
Documents you’ll likely need:
- Plans (for plan check), menu and equipment list (for food), commissary agreement (for mobile food), manager food safety certificates, HACCP plans (some operations), body art practitioner and facility registration.
Timeline:
- Food facility plan check to final inspection can range from 4–12+ weeks depending on scope and completeness. Mobile units can be faster once the unit and commissary are ready.
Cottage food:
- California cottage food operators (home-based) must register or permit with the county and follow allowed foods list.
California Department of Public Health — Cottage Foods (official) (rules; accessed September 2025)
Contact Sacramento County EMD via the main site above to apply locally.
What to do if this doesn’t work:
- Use the EMD contact directory on EMD home (official) (accessed September 2025) to reach the correct program. If you can’t find the right person, call 311 and ask to be routed to Sacramento County EMD.
Step 6 — Industry-specific licenses and registrations
Most important action: Identify if your industry has a mandatory state license, then sequence city permits around it.
Common Sacramento examples and official links:
- Contractors: You must be licensed by CSLB for projects $500 or more in labor and materials.
CSLB — Licensing (official) (apply, check status; accessed September 2025). Phone: 1‑800‑321‑2752 - Alcohol: Get ABC approval for retail on/off-sale alcohol.
ABC — License Types and Fees (official) (requirements; accessed September 2025) - Cannabis (City + State): Sacramento requires city cannabis business permits; the state also licenses all cannabis businesses.
City: Cannabis in Sacramento (official) (rules, permits; accessed September 2025)
State: Department of Cannabis Control (official) (licensing portal; accessed September 2025) - Tobacco retailer: Sacramento and the state regulate tobacco retailing.
City: Special Business Programs — Tobacco (official) (accessed September 2025)
State: CDTFA Cigarette and Tobacco Licensing (official) (accessed September 2025) - Childcare: Licensed by the CA Department of Social Services.
Community Care Licensing — Child Care (official) (accessed September 2025) - Transportation/network: CPUC and DMV regulate certain transport businesses.
California Public Utilities Commission — Licensing (official) (accessed September 2025)
CA DMV — Occupational Licensing (official) (accessed September 2025) - Street/sidewalk vending: Governed by SB 946 and local rules.
City of Sacramento — Sidewalk Vending info (official) (accessed September 2025)
What to do if this doesn’t work:
- Use CalGOLD (official) (accessed September 2025). Enter “Sacramento” and your business type to get a curated list of permits and contacts.
Step 7 — Taxes and ongoing compliance (don’t ignore these)
Most important action: Set up a calendar for renewals, statements, and taxes now to avoid penalties later.
State business taxes:
- Franchise tax and income tax: The California Franchise Tax Board (FTB) administers business income taxes. Most corporations and LLCs owe an annual minimum tax of $800. First-year exemptions vary by entity type and year — verify current rules.
FTB — Business filing and minimum tax (official) (accessed September 2025) - Sales and use tax returns: If you have a seller’s permit, file with CDTFA per your assigned frequency.
CDTFA — File and pay (official) (accessed September 2025)
Payroll and labor:
- Register as an employer with EDD when required (see above). File payroll tax returns as scheduled.
EDD — Payroll taxes (official) (accessed September 2025) - California Paid Sick Leave: State law requires paid sick leave (generally at least 5 days/40 hours annually for most employees since 2024). Some industries have additional rules.
DIR — Paid Sick Leave (official) (accessed September 2025) - Fast-Food minimum wage: As of April 1, 2024, most fast-food workers at covered chains must be paid at least $20/hour.
DIR — Fast Food Council and wages (official) (accessed September 2025)
Local:
- City Business Operations Tax renewals: The city will assign reporting/payment schedules. Watch for renewal notices and due dates.
City Revenue Division — Business Tax (official) (accessed September 2025)
Property:
- Business personal property: Some businesses must file annual property statements (Form 571-L) with the county assessor if requested or over certain thresholds.
Sacramento County Assessor (official) (assessment and forms; accessed September 2025). For state rules: California BOE — Business Property (official) (accessed September 2025)
What to do if this doesn’t work:
- If you’re unsure about state tax obligations, call FTB (find contact on FTB Contact (official) — accessed September 2025) and CDTFA (1‑800‑400‑7115). For payroll questions, use EDD’s contact portal above.
Document checklist (what to gather once and use everywhere)
| Document | Why it matters | Where you’ll use it |
|---|---|---|
| Government-issued ID | Identity verification | Banks, city, county, state |
| EIN letter (IRS) | Tax ID for banking/tax accounts | CDTFA, EDD, city, bank |
| Formation approval (LLC/corp) | Proves entity exists | City BOTC, leasing, bank |
| FBN filing & publication proof | Required if doing business as a trade name | City BOTC, bank |
| Address verification & lease | Proof of location | City Planning/Building, Fire |
| Site/floor plans (if applicable) | Plan review | Building, Fire, EMD |
| Seller’s permit (if applicable) | Required for retail | City BOTC, vendors, wholesalers |
| Professional licenses (if applicable) | Legal to practice | City BOTC, state boards |
| Insurance certificates | Liability/worker’s comp | Landlords, contractors, permits |
Real-world examples (Sacramento scenarios)
Example A — Midtown coffee cart:
- Sequence: Seller’s permit → City BOTC → EMD mobile food permit and commissary → Fire clearances (if using generators/LP) → If placing on private lot, zoning permission; if on sidewalk, sidewalk vending rules.
- Timeline: Even with a ready-made cart, permitting can take 4–8 weeks depending on EMD plan/insp availability and site permissions.
- Tip: Secure a commissary early; EMD requires it for most mobile food operations. Use EMD (official) (accessed September 2025).
Example B — Home-based e-commerce in East Sacramento:
- Sequence: EIN → Seller’s permit ($0) → City BOTC → Home Occupation Permit → Sales tax filing setup with CDTFA.
- Timeline: If zoning allows and you’re low-impact (no on-site customers), you can often complete registrations within 1–2 weeks.
- Tip: Keep inventory storage and shipping traffic within home occupation limits. Confirm with City Planning (official) (accessed September 2025).
Example C — General contractor working city jobs:
- Sequence: CSLB license (required at ≥ $500) → City BOTC (even if your office is outside the city, if you work in city limits) → Business personal property filings (tools/equipment as required) → Worker’s comp and payroll accounts if you have employees.
- Tip: Many cities in the region require separate business licenses if you work in their jurisdiction. Keep a list.
Sacramento licensing workflow (cheat-sheet table)
| Step | Action | Agency | Typical timeline | Notes |
|---|---|---|---|---|
| 1 | Confirm location inside city limits | City Planning | Same day | Use city maps/tools |
| 2 | Pick structure; get EIN | CA SOS / IRS | Same day–2 weeks | LLC/corp via bizfile; EIN is instant online |
| 3 | Seller’s permit (if needed) | CDTFA | Same day–1 week | Permit cost $0 |
| 4 | City Business Operations Tax Certificate | City Revenue Division | 1–10 business days | Varies by classification/clearances |
| 5 | Zoning/home occupation | City Planning | 1–4 weeks | May be faster if no CUP needed |
| 6 | Building/Fire permits | City Building/Fire | 2–8+ weeks | Depends on scope |
| 7 | Health permits (if applicable) | Sacramento County EMD | 4–12+ weeks | Plan check plus inspections |
| 8 | Open and maintain compliance | City/CDTFA/EDD/FTB | Ongoing | Calendar your renewals |
Sources: agency process pages linked throughout (accessed September 2025).
Fees and costs overview (what you can expect)
Exact dollar amounts change and depend on your business classification, square footage, and equipment. For current fee schedules, use the official links below. Where the law sets a clear, stable amount, the figure is shown.
| Cost item | What to expect | Notes and official source |
|---|---|---|
| Seller’s Permit | $0 | CDTFA permits (official) (accessed September 2025) |
| Employer registration | $0 | EDD payroll taxes (official) (accessed September 2025) |
| City Business Operations Tax | Varies by classification | See current schedule: City Revenue Division (official) (accessed September 2025) |
| Home Occupation Permit | Varies | City Planning (official) (accessed September 2025) |
| Building/Fire permits | Varies by project | Building Division (official) and Fire Prevention (official) (accessed September 2025) |
| EMD health permits | Varies by facility | Sacramento County EMD (official) (accessed September 2025) |
| Franchise/minimum tax | Usually $800 per year (entity-dependent) | FTB — Business filing (official) (accessed September 2025) |
What to do if this doesn’t work:
- If you can’t find a fee on the site, call the agency or use 311 for City departments. For CDTFA fees, call 1‑800‑400‑7115.
Required documents by application (quick tables)
City Business Operations Tax Certificate (BOTC)
| Required item | Why needed |
|---|---|
| Business legal name and address | Core registration |
| EIN or SSN | Tax identification |
| Seller’s permit number (if applicable) | Sales tax compliance |
| Professional license numbers (if any) | Legal to practice |
| FBN proof (if using DBA) | Name compliance |
| Estimated receipts / classification info | Tax calculation |
EMD Food Facility (example)
| Required item | Why needed |
|---|---|
| Plans and equipment list | Plan check |
| Menu/processes | Food safety review |
| Food manager certificate | Compliance with food code |
| Commissary agreement (mobile) | Required for mobile operations |
| Final inspection scheduling | Opening approval |
Building permits (tenant improvement)
| Required item | Why needed |
|---|---|
| Site/floor plans (stamped if required) | Plan review |
| Mechanical/electrical/plumbing plans | Code compliance |
| Title 24/energy docs | State compliance |
| Contractor info/CSLB license | Licensed work |
| Inspections schedule | Occupancy approval |
Realistic timelines (from first application to open)
Every business is different, but this is what many Sacramento owners experience:
- Low-impact home-based services (no customers on-site): 1–2 weeks to register seller’s permit (if needed), city BOTC, and home occupation permit.
- Retail in existing, ready space: 4–8 weeks for zoning clearance, city BOTC, minor tenant improvements (if any), and Fire inspection.
- Restaurant build-out: 8–16+ weeks for EMD plan check, building permits and inspections, Fire, and final EMD opening inspection.
- Mobile food: 4–10 weeks depending on unit readiness, commissary, and EMD inspections.
Plan ahead:
- Permit review times can grow during peak seasons. Submitting complete, accurate plans and documents reduces back-and-forth.
What to do if this doesn’t work:
- Book a pre-application meeting with the City’s Community Development team via Community Development (official) (accessed September 2025). For food, call EMD via their main site above.
Common mistakes to avoid
- Applying for the city BOTC before confirming zoning and use. You might pay, then find you can’t operate at that location. Confirm use with Planning first.
- Signing a lease before code review. Older buildings can require expensive upgrades (ADA access, restrooms, ventilation). Do a preliminary plan check call.
- Skipping the seller’s permit because you “only sell online.” If you sell taxable goods shipped to California addresses, CDTFA rules apply. Register first.
- Ignoring EDD employer registration. Once you pay over $100 in wages in a calendar quarter, register within 15 days to avoid penalties.
- Not publishing your Fictitious Business Name statement. California requires weekly publication for four consecutive weeks after filing (see BPC §17917 (official) — accessed September 2025).
- Assuming one city license covers the whole region. If you do work in other cities, you may need additional local business licenses.
- Waiting on food safety manager training until the end. EMD may ask for proof during plan check/inspection.
- Not tracking renewals and deadlines. Put due dates in your calendar the day you apply.
What to do if this doesn’t work:
- If you’ve already made a mistake, call 311 to explain your situation to the City and request next steps. For tax issues, contact CDTFA at 1‑800‑400‑7115 or the FTB via their contact page.
Inclusivity, diversity, and accessibility (Sacramento/Cali resources)
These programs don’t replace required permits, but they can help with certifications, capital, and technical help.
- Women-owned businesses:
CalOSBA — Technical Assistance (official) (find Women’s Business Centers; accessed September 2025)
U.S. SBA — WOSB certification (official) (accessed September 2025) - Minority-owned businesses:
California Supplier Diversity — CPUC (official) (MBE certification for utility contracting; accessed September 2025)
MBDA Business Center network (official) (federal centers; accessed September 2025) - Disabled-owned businesses:
CA Department of General Services — Small Business/Disabled Veteran certification (official) (state contracting certifications; accessed September 2025) - Veteran-owned businesses:
CalVet — Veterans and business resources (official) (programs; accessed September 2025)
SBA — Veterans Business Outreach Centers (official) (accessed September 2025) - LGBTQ+-owned businesses:
NGLCC — LGBTBE certification (established national org) (supplier diversity; accessed September 2025) - Immigrant-owned businesses and language access:
California Civil Rights Department — Language access resources (official) (accessed September 2025)
City of Sacramento — Language access/311 (official) (request services in multiple languages; accessed September 2025) - Free local advising (all owners):
Capital Region SBDC (SBA network) (no‑cost advisors; accessed September 2025)
SCORE Sacramento (established nonprofit) (mentoring and workshops; accessed September 2025)
What to do if this doesn’t work:
- If you’re unsure which certification fits, schedule a consult with SBDC. They can map your goals (capital vs. contracting) to the right program and help with applications.
Street vending, farmers’ markets, and temporary events
Most important action: Confirm the rules for your location and event sponsor before you show up to sell.
Street/sidewalk vending:
- California’s SB 946 allows sidewalk vending with local rules. The City of Sacramento sets where and how vending is allowed.
City Planning — Vending information (official) (accessed September 2025)
Farmers’ markets and temporary events:
- Food vendors generally need a Temporary Food Facility permit from EMD, and possibly organizer approvals.
EMD — Temporary Food Facilities (official) (accessed September 2025)
Sales tax:
- Most event sales are taxable unless a specific exemption applies. Bring your seller’s permit and collect/remit tax via CDTFA.
CDTFA — Events and temporary sellers (official) (accessed September 2025)
What to do if this doesn’t work:
- Ask the market or event organizer for their vendor compliance packet and contacts. Call EMD for the correct temporary permit forms if the organizer doesn’t provide them.
Hiring employees in Sacramento (key compliance in plain English)
Most important action: Register with EDD once you cross the $100 in wages threshold in a calendar quarter and post required notices.
- EDD employer accounts and payroll taxes:
EDD payroll taxes (official) (registration and filing; accessed September 2025) - Worker’s compensation insurance: Required for nearly all employers (including many with just one employee).
California DIR — Worker’s Comp (official) (accessed September 2025) - Labor standards (wage, overtime, sick leave, postings):
California DIR — Labor Commissioner (official) (accessed September 2025) - City/County local ordinances: Sacramento does not currently have a citywide minimum wage separate from the state, but industry-specific rules (e.g., fast food) may apply.
Check current state/local wages via DIR — Minimum Wage (official) (accessed September 2025)
What to do if this doesn’t work:
- For HR basics and compliance checklists, request help from Capital Region SBDC (accessed September 2025). For wage questions, contact the DIR via the link above.
If you work in multiple jurisdictions
Most important action: Keep a spreadsheet of each city where you do business, whether they require a local license for out-of-town businesses, and renewal dates.
- City of Sacramento requires a BOTC if you operate in city limits (job sites included for contractors). Neighboring cities often have their own licenses.
- Sales tax district rates vary by location. Always check the rate where the sale is considered to occur.
CDTFA — City and County Sales and Use Tax Rates (official) (address look-up; accessed September 2025)
What to do if this doesn’t work:
- Use CalGOLD (official) (accessed September 2025) for each city where you operate. It’s often faster than hunting each city website.
FAQs (California and Sacramento-specific)
- Do I need a business license if I work from home in the City of Sacramento?
Yes. You generally need the City’s Business Operations Tax Certificate plus a home occupation permit if your home is inside city limits.
City Revenue Division — Business Tax (official) and City Planning — Home Occupation (official) (accessed September 2025) - Is the California seller’s permit really free?
Yes, the permit itself is $0. CDTFA may require a security deposit based on risk.
CDTFA permits (official) (accessed September 2025) - I’m a contractor with a CSLB license but no office in Sacramento. Do I still need a city license to work there?
If you perform work inside City of Sacramento limits, you generally need the City’s BOTC even if your office is elsewhere.
City Revenue Division — Business Tax (official) (accessed September 2025) - How fast can I get the City business certificate?
Online approvals can be a few days when no other reviews are needed. If Planning, Fire, or Building reviews apply, it can take longer.
City Revenue Division (official) (accessed September 2025) - Do I file a Fictitious Business Name (FBN)?
Yes, if you’re a sole proprietor/partnership using a name not your legal name. File with Sacramento County and publish in a newspaper once per week for four consecutive weeks (per state law).
Sacramento County Clerk/Recorder — FBN (official) and BPC §17917 (official statute) (accessed September 2025) - What is the California minimum franchise tax?
For most corporations and LLCs, the annual minimum is $800. First-year exemptions vary by entity and year; verify current rules.
FTB — Business filing (official) (accessed September 2025) - I only sell online. Do I still need Sacramento licensing?
If your home or office is inside city limits, yes — you need the BOTC and likely a home occupation permit. If you sell taxable goods, you need a CDTFA seller’s permit.
City Revenue Division (official) and CDTFA permits (official) (accessed September 2025) - Can I serve alcohol at my new restaurant?
You must secure an ABC license and meet local zoning/spacing rules. Start with ABC and City Planning before building.
ABC — Licensing (official) and City Planning (official) (accessed September 2025) - I’m a fast-food franchise. What special wage applies?
Covered fast-food chains must pay at least $20/hour since April 1, 2024, and follow other Fast Food Council rules.
DIR — Fast Food Council (official) (accessed September 2025) - I got a letter about business personal property. What is Form 571‑L?
That’s the annual business property statement for equipment and fixtures. If the Assessor requests it (or if you meet thresholds), you must file by the deadline to avoid penalties.
Sacramento County Assessor (official) (accessed September 2025)
Troubleshooting playbook: “What to do if this doesn’t work” (summary)
- Can’t tell if you’re in city limits?
Use City Planning maps or call 311. If near borders, ask Planning to verify your parcel. - Application keeps bouncing between departments?
Ask for a pre-application meeting with Community Development to get all reviewers in one loop. - EMD plans are stuck?
Call the EMD program line through EMD (official) or request a status update with your plan number. - Sales tax questions you can’t resolve online?
Call CDTFA at 1‑800‑400‑7115 and have your seller’s permit number handy. - Payroll setup confusion?
Use EDD’s e‑Services tutorials or ask SBDC to help you register correctly the first time.
Local and state contact directory (bookmark these)
| Topic | Office | Where to click | Phone |
|---|---|---|---|
| City business tax (“license”) | City of Sacramento Revenue Division | Revenue Division (official) | Use 311 to reach |
| Zoning / Home occupation | City Planning | Planning (official) | 311 |
| Building permits | City Building Division | Building (official) | 311 |
| Fire inspections/permits | Sacramento Fire Dept — Prevention | Fire Prevention (official) | 311 |
| Health permits | Sacramento County EMD | EMD (official) | See site directory |
| Seller’s permit (sales tax) | CDTFA | CDTFA permits (official) | 1‑800‑400‑7115 |
| Employer registration | EDD | EDD payroll taxes (official) | See site |
| Entity filing | CA Secretary of State | bizfile Online (official) | See site |
| Contractors license | CSLB | CSLB (official) | 1‑800‑321‑2752 |
| Alcohol license | CA ABC | ABC (official) | See site |
| Property assessment | Sac County Assessor | Assessor (official) | See site |
| Small biz advising | Capital Region SBDC | SBDC (SBA network) | See site |
Sources: agency directories (accessed September 2025).
A practical step-by-step for three common Sacramento business types
Retail boutique in Midtown:
- First action: Verify the space is zoned for retail and whether any CUP is needed.
- Do next: Apply for seller’s permit ($0), then City BOTC.
- Before opening: If signage changes, pull a sign permit. If doing tenant improvements, obtain building permits.
- If alcohol retail is planned: Start ABC early and confirm location eligibility.
- Plan B: If the space requires major upgrades, consider a different site to avoid months of delay.
Coffee shop in an older building:
- First action: Meet with Planning/Building for a reality check on restrooms, exits, ventilation, grease hood, and ADA access.
- Do next: Begin EMD plan check.
- In parallel: Apply for seller’s permit, City BOTC, and any Fire permits likely required for cooking equipment.
- Plan B: Consider a previously permitted restaurant space to drastically cut time and cost.
Home-based web design:
- First action: Confirm home occupation rules (no client visits or minimal, parking, signage).
- Do next: Apply for City BOTC and Home Occupation Permit.
- If hiring: Register with EDD once you cross the $100 wages threshold.
- Plan B: If your HOA/lease forbids business activity, consider a small co-working address that meets zoning.
Reality checks and warnings (what owners wish they knew)
- “Business license” ≠ full permission. The City BOTC is necessary but not sufficient for uses that need health, building, or fire approvals.
- Older buildings shift risk to you. Even a simple coffee bar can trigger plumbing, grease, ventilation, ADA and restroom requirements that add months.
- Timeline stacks. Each reviewer (Planning, Building, Fire, EMD) has their own queue; you can’t always run them fully in parallel.
- Sales tax is not optional. If you sell taxable goods to California buyers, you owe sales tax whether your customers are local or online.
- Track district tax rates. Parts of Sacramento can have different district rates. Use CDTFA’s address tool every time you add a location.
- Payroll rules change. Post required state notices and review wage/sick leave updates annually.
What to do next (quick sequence you can follow today)
- Confirm your address is inside city limits and that your use is allowed.
City Planning maps (official) (accessed September 2025) - Form your entity (if LLC/corp) and get your EIN.
bizfile Online (official) and IRS — EIN (official) (accessed September 2025) - Apply for your seller’s permit if you sell taxable goods ($0).
CDTFA permits (official) (accessed September 2025) - Apply for the City BOTC.
City Revenue Division — Business Tax (official) (accessed September 2025) - Start any required Planning/Building/Fire or EMD health permits.
City Community Development (official) and EMD (official) (accessed September 2025) - Put renewals and due dates on your calendar.
FTB — Business filing (official), CDTFA — File and pay (official), EDD payroll taxes (official) (accessed September 2025)
About This Guide
- Purpose: Help Sacramento business owners navigate real licensing steps with official links and realistic expectations.
- Sources: Every rule, number, or process in this guide points to an official government site or an established program. All links were verified as working and accessed in September 2025.
- Limitations: Fees and rules change. Where current dollar amounts were not available without live verification, this guide linked directly to the official fee schedules and advised you to check the latest amounts.
Disclaimer
This guide is for general information only and is not legal, tax, or compliance advice. Laws, fees, and procedures change. Always verify requirements, deadlines, and dollar amounts with the relevant agency using the official links provided. If you have specific questions about your situation, consult a qualified professional or contact the agency directly (City of Sacramento via 311, CDTFA at 1‑800‑400‑7115, or the department listed in the tables above).