//Sacramento, California

How to start a business in Sacramento.

As the state capital, Sacramento anchors an economy on government, UC Davis Health, and a fast-growing tech and startup scene, with a farm-to-fork dining culture the region is known for. Here is the practical sequence to register, pay your Business Operations Tax, and open, with the official links and where to get free help.

Starting a business in Sacramento? The official steps and source links are below.

Already operating or launching with budget in place? You can also

Sacramento is a working capital city, not just a seat of government. The state is the anchor employer, and around it sit UC Davis Health, a deep bench of nonprofits and law firms, and a tech and startup scene that has been quietly growing for years. Midtown and downtown carry the everyday retail and nightlife, the Golden 1 Center and the Kings pull crowds into the grid, and the region's farm-to-fork identity gives its restaurants a reputation that reaches well past city limits.

That means your customer might be a state agency, a Midtown regular, a UC Davis Health worker, or a family in East Sacramento, and each one finds you differently. Getting open cleanly, with your Business Operations Tax paid, the right permits, and zoning confirmed, is the first step. Getting found afterward is the second. This guide covers the first in detail, then points you to the second at the end.

//The sequence

How to start a business in Sacramento, step by step.

Sacramento runs its business tax through the Revenue Division of the Finance Department. Here is the full order, including the county and state pieces that sit alongside the city's own steps.

1
Register the business and the name
Form an LLC or corporation with the California Secretary of State through bizfile Online, or stay a sole proprietor. If you use a name that is not your legal name, file a fictitious business name (DBA) statement with the Sacramento County Department of Finance, Business License Unit, within 40 days of starting business, in person or by mail. The county says to start publishing within 30 days of filing, once a week for four consecutive weeks in a newspaper of general circulation; state law allows 45, so starting within 30 satisfies both.
CA Secretary of State: bizfile Online Sacramento County Department of Finance: Fictitious Business Names
2
Get your free EIN and any seller's permit
The IRS says you generally need an EIN to hire employees or to operate a partnership or corporation. It issues the number online, immediately if approved, and never charges for it. If you sell or lease goods that would ordinarily be subject to sales tax, you also need a seller's permit from the CDTFA, which does not charge for it but may ask for a security deposit.
IRS: Get an EIN CDTFA: Seller's permit
3
Pay your Sacramento Business Operations Tax
The City of Sacramento does not issue a general business license. City Code Chapter 3.08 requires every business that operates in the city to get a Business Operations Tax (BOT) certificate, and businesses that do business with the city pay the tax too; it is paid every year. Apply online or on the paper application, then submit it by email to finance@cityofsacramento.org, by mail to the Revenue Division, 915 I Street, Room 1214, or in person. Fees are due when you apply. Permits and Taxes: (916) 808-8500.
City of Sacramento: Business Operations Tax (BOT)
4
Know how the tax is figured
The amount depends on the type of business. Sales and service businesses pay on annual gross receipts; state-licensed professionals such as accountants, attorneys, dentists and engineers pay by years licensed and number of employees; brokers pay a flat rate plus an amount per supervised employee; commercial landlords pay on gross rent; and owners of 4 or more residential rental units are included. Cannabis businesses pay 4% of gross receipts, monthly.
City of Sacramento: Different Types of Businesses
5
Clear zoning and pull any industry permits
Your application goes to Community Development to confirm the location is zoned for the business, and the certificate is mailed after zoning approval, so confirm the use before you sign a lease. A home business also needs a one-time Home Occupation Permit, submitted with the tax application, and some businesses need a Special Business Permit. If you sell or serve food: Sacramento County Environmental Management permits and inspects every retail food facility in the county, cities included, and plans for a new facility, a remodel or a change in the type of operation must be submitted before construction begins: Plan Review, (916) 874-6010. The first year's permit fee is billed after you are permitted. For other permits, GO-Biz offers permitting and regulatory help for any size company.
Sacramento County EMD: Retail Food Protection Program Sacramento County EMD: Plan Review FAQs GO-Biz: Permit & Regulatory Assistance
6
Renew every year
Every business renews its account and pays the tax annually. Renewal notices go out in February, May, August and November for the quarterly renewal periods, and you can renew online with your account number and the last four digits of the federal ID or Social Security number on the account.
City of Sacramento: Renew Your Business Operations Tax Account
7
Check the $800 California tax rules for your entity
Every California LLC owes the $800 annual tax, even in a year it does no business, until it is cancelled. Corporations owe an $800 minimum franchise tax, but newly incorporated or qualified corporations do not pay it in their first taxable year.
Franchise Tax Board: LLC $800 annual tax Franchise Tax Board: Corporation minimum tax
8
Use the free help that already exists
The Norcal SBDC network offers expert, no-fee advising for new startups and established businesses; its Sacramento Valley SBDC is at 1792 Tribute Rd #270, Sacramento, (916) 655-2100. Use it before you pay a consultant.
Norcal SBDC: Sacramento Valley SBDC (free advising)

//Free Sacramento checklist

Take the steps with you.

Get the City of Sacramento business checklist with the city, county, state and federal source links in one place, plus the licensing offices of five Sacramento County cities. We keep the source page dated so you can see when it was last checked.

//Common questions

Things we get asked first.

Do I need a business license in Sacramento?

The City of Sacramento does not issue a general business license. Instead, City Code Chapter 3.08 requires every business that operates in the city to get a Business Operations Tax certificate, and businesses that do business with the city pay the tax too.

Source: City of Sacramento, Business Operations Tax

How much does a Sacramento Business Operations Tax cost?

It depends on the type of business. Sales and service businesses pay on annual gross receipts, state-licensed professionals by years licensed and number of employees, brokers a flat rate plus each supervised employee, and commercial landlords on gross rent. Fees are due when you apply.

Source: City of Sacramento, Different Types of Businesses

Can I run a business from my home in Sacramento?

Yes. You need the Business Operations Tax certificate plus a Home Occupation Permit, a one-time fee, submitted together with your tax application. Read the city's home occupation requirements before you apply.

Source: City of Sacramento, Business Operations Tax

What happens after I apply?

Your application goes to the Community Development Department to confirm the business will be in an appropriately zoned location. After zoning approval, the city mails your Business Operations Tax certificate.

Source: City of Sacramento, Business Operations Tax

How do I open a restaurant in Sacramento?

Beyond the Business Operations Tax certificate, every retail food facility needs a health permit from Sacramento County Environmental Management, which covers all the cities. Submit plans before any construction, remodel or change in the type of operation (Plan Review: (916) 874-6010), and schedule the final inspection at least two days ahead once all equipment works: (916) 875-8440. After opening you post the green, yellow or red placard from your latest inspection.

Sources: Sacramento County EMD, Plan Review FAQs and Retail Food Protection Program

How do I register a business name in Sacramento County?

If you use a name that is not your legal name, file a fictitious business name (DBA) statement with the Sacramento County Department of Finance, Business License Unit, within 40 days of starting business, in person or by mail. The county says to start publishing within 30 days of filing, once a week for four consecutive weeks in a newspaper of general circulation; state law allows 45, so starting within 30 satisfies both.

Source: Sacramento County Department of Finance, Fictitious Business Name FAQs

//Already operating?

The marketing question starts after the filing question.

If the business is already open, or the launch is funded, tell our founders what you want to change. We will look at the business before recommending SEO, paid media, the website or anything else.

For operating businesses and funded launches with budget available to act on the plan.

Prefer to read first? Marketing agency serving Sacramento

//Bookmark these

Official Sacramento, county, and California resources.

Every link here goes straight to a government or nonprofit source. These are the agencies that actually issue your registrations and permits, so go to them directly rather than a paid middleman.

City of Sacramento: Business Operations Tax (BOT)
No business license; every business operating in the city gets a BOT certificate after a zoning check. (916) 808-8500, businesspermits@cityofsacramento.org.
City of Sacramento: Different Types of Businesses
How the tax is figured: gross receipts, years licensed, brokers' employees, gross rent or rental units.
City of Sacramento: Renew Your Business Operations Tax Account
Renew and pay every year; notices go out in February, May, August and November.
Sacramento County: Business Licensing
The county licenses businesses in the unincorporated area, outside Sacramento, Elk Grove, Citrus Heights, Folsom, Rancho Cordova, Galt and Isleton. (916) 874-6644.
Sacramento County: Business Licensing FAQs
County license fees ($262.60 for three years), special licenses, zoning checks and home occupation standards.
Sacramento County Department of Finance: Fictitious Business Names
Filed with the Business License Unit, in person or by mail. The county says to start publishing within 30 days. (916) 874-6644.
Sacramento County EMD: Retail Food Protection Program
Permits and inspects every retail food facility in the county, cities included, and posts green, yellow or red placards.
Sacramento County EMD: Plan Review FAQs
Plans before any new construction, remodel or change in the type of operation. Plan Review: (916) 874-6010.
Sacramento County Assessor: Business Personal Property
File if your business property cost $100,000 or more, or the Assessor asks. (916) 875-0730.
Norcal SBDC: Sacramento Valley SBDC (free advising)
No-fee advising for startups and established businesses. 1792 Tribute Rd #270, Sacramento, (916) 655-2100.
CA Secretary of State: bizfile Online
Where LLCs and corporations file with the California Secretary of State.
IRS: Get an EIN
Your federal tax ID. Apply online and, if approved, the number is issued immediately. The IRS never charges a fee for an EIN.
CDTFA: Seller's permit
Required if you sell or lease goods that would ordinarily be subject to sales tax. The CDTFA does not charge for it, though it may ask for a security deposit.
Franchise Tax Board: LLC $800 annual tax
Every LLC doing business or organized in California owes the $800 annual tax, even in a year it does no business, until the LLC is cancelled.
Franchise Tax Board: Corporation minimum tax
Corporations owe an $800 minimum franchise tax, but newly incorporated or qualified corporations do not pay it in their first taxable year.
GO-Biz: Permit & Regulatory Assistance
The Governor's Office of Business and Economic Development says it will assist any size company with permitting and regulatory questions.