Having your own business can be the fulfillment of a lifetime dream. It can also be confusing, intimidating and frustrating. There are many things to think about - regulations, financing, taxes, permits and more. This directory is designed to provide you with a clear, informational path to help you move through the steps necessary to establish, expand, or locate your business in Mendocino County.

Starting a business means taking risks. Not all business ventures succeed, but there are things you can do to minimize your risks. This directory includes information to help you evaluate the risks.

There are two major areas that are critical to the success of a business. The first area is planning. Entrepreneurs need to evaluate start-up costs, markets, distribution strategies, and financing options. The second area is knowing where to get help. Entrepreneurs don't need to be experts on every aspect of business operation, but do need to know how to find the answers. There is enough information within these pages to gain access to the organizations, agencies, books and other resources that can respond to most business questions and provide much needed guidance.

This directory is designed as a resource to assist entrepreneurs in planning and in accessing additional resources.

I. CHECK LIST

Develop a Business Plan.
Consult with necessary professionals.
Obtain necessary insurance coverage.
Decide on a legal structure.
File a Fictitious Business Name Statement, if applicable, with the County Clerk and a local newspaper.
Also, file an affidavit of publications within 30 days of the newspaper ad with the County Clerk.
Obtain business license from the appropriate City Hall or County Office.
Obtain other necessary permits or license from city, state and federal governments. Check the zoning laws and land use ordinances that may apply.
Apply for a State Employer Tax Identification Number.
Apply for a Federal Identification Number.

Note that these are not all of the requirements necessary to start your business

II. HOW TO SUCCEED IN A SMALL BUSINESS

Make sufficient assessment of professional and personal skills
Get your business plan on paper
Have adequate funding
Keep complete records
Develop a marketing strategy
Select an appropriate location
Implement good management practices
Hire the right people
Focus on superior customer service

III. BUSINESS PLAN OUTLINE

Statement of Purpose / Mission Statement

I. Management

A. EXECUTIVE SUMMARY
• Goals and Objectives
• Strengths in product and service
• Owners and key employees
B. ORGANIZATIONAL STRUCTURE
• History of Business
• Legal structure
• Personnel/organizational chart
• Policies and procedures
• Insurance
C. PRODUCTS AND SERVICES
• Production information
• Unique selling features
• Inventory
• Materials, suppliers/equipment
• Packaging and distribution
• Location information

II. Marketing

A. PRICING
• Variable cost per unit
• Break even analysis
• Competition's pricing
B. MARKETS
• Description of target markets (segment your customers)
• Description of industry of trends
C. MARKET POSITION
• Differentiation
• Competition
• Image statement
D. MARKET STRATEGIES
• Goals
• Budget
• Vehicles
• Calendar

III. Financial

IV. Attachments

IV. LEGAL STRUCTURES

After deciding to establish a business, you must choose the type of legal structure for your business. Most small businesses start out as either a sole proprietorship or partnership, but many eventually explore the transition to a corporation or S corporation. Contact an attorney and/or accountant to learn the advantages and legal requirements of each to decide which is best for you.

Sole Proprietorship
This is the simplest and least regulated form of organization with minimal legal start-up costs. One person owns and operates the business and is responsible for procuring financing. The sole proprietor has total control, pays all expenses and taxes, and receives all profits and business income. The major profits and business income are taxed as personal income. The major disadvantages include unlimited personal liability of the owner for all claims, taxes and debts against the business and potential dissolution of the business upon the owner's death.

Partnership
A partnership is relatively easy to form and can provide additional financial and managerial resources. Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. Profits are taxed as personal income and the partners (who act as co-owners) are still personally liable for debts and taxes. Personal assets can be attached and liquidated if the partnership itself cannot satisfy creditor's claims.

Limited Partnership
A special arrangement, called a "limited partnership," allows partners to avoid personal asset liability. The IRS has special income tax rules for limited partnerships and they must be registered with the offices of the County Clerk and the Secretary of State. Limited partnerships must also pay a franchise fee. When entering into any partnership, a written agreement is essential.

Limited Liability Company (LLC)
A limited Liability Company (LLC) is a business entity, composed of one or more "members", which provides the owner(s) protection of personal assets while allowing the owner(s) to be taxed as if they were either partners (two or more members) or a sole proprietorship (one member). Members invest in an LLC in exchange for a percentage ownership interest in the business and decide what share of the LLC profits and losses each member will receive, which can be different than the investment percentage. To form an LLC Articles of Organization need to be filed with the Secretary of State. Your company's name will have to include the words "Limited Liability Company" or "LLC". Anyone forming an LLC should prepare an operating agreement, similar to the bylaws of a corporation, which spells out the internal arrangements among the LLC members.

Corporation
The most complex of business organizations, the corporation, acts as a legal entity which exists separately from its owners. While limiting the owners form personal liability, this creates a "double taxation" on earnings (corporate tax and personal tax). Corporate structure may be advantageous because it allows capital to be raised more easily through the sale of stocks and bonds and can continue to function as a business even without key individuals. It also enables employees to participate in various types of insurance and profit-sharing plans. Corporations must be registered with the Secretary of State and there are considerable costs associated with creating a corporation.

COURTS

Mendocino County Superior Courts

Mendocino County Superior Court Clerk
100 N. State Street
P.O. Box 996
Ukiah, CA 95482
(707) 463-3422

Area Branches

Point Arena
24000 South Highway 1, VFW Hall
P.O. Box 153
Point Arena, CA 95468
(707) 882-2116; 800-472-2207

Long Valley Branch (Leggett, Laytonville and Piercy)
P.O. Box 157
Leggett, CA 95585
(707) 459-5554; 800-431-1158

Round Valley Justice Court
Covelo, CA 95428
(707) 459-5554; 800-431-1158

Ten Mile Justice Court
700 South Franklin Street
Fort Bragg, CA 95437
(707) 964-3192

Willits Branch
125 E. Commercial
Willits, CA 95490
(707) 459-5554

Mendocino County District Attorney

Fort Bragg
700 South Franklin
Fort Bragg, CA 95437
(707) 964-5624

Ukiah
Courthouse
Ukiah, CA 95482
(707) 463-4211

Willits
125 East Commercial Street
Willits, CA 95490
(707) 459-6128

Mendocino County Municipal Courts

Ukiah
Courthouse
100 N. State Street
Ukiah, CA 95482
(707) 463-4660

Willits
125 E. Commercial Street
Willits, CA 95490
(707) 459-5554

Please use this Update Form to notify EDFC of any changes
to your organization's information.

SECTION 1

INTRODUCTION

I. CHECK LIST

II. HOW TO SUCCEED IN A SMALL BUSINESS

III. BUSINESS PLAN OUTLINE

IV. LEGAL STRUCTURES

COURTS