This article is a ‘what’s needed basics’, general information for creating a formal sole-prop business in SLO.

1. Fictitious Business Name Filing

If you are using a fictitious name, or a doing business as (DBA) name, you will first need to file for it with San Luis Obispo County. Here is the 4 step process outlined: https://www.slocounty.ca.gov/Departments/Clerk-Recorder/All-Services/Fictitious-Business-Name-New-Filing.aspx

In short, you’ll need to make sure your fictitious business name isn’t taken then file for the name here: https://crrecords.slocounty.ca.gov/SLOWeb/action/ACTIONGROUP201S3

Then, you need to publish the fictitious business name statement once a week for four weeks in a local newspaper like the tribune. 

The newspaper will provide you with proof of publication to the County of San Luis Obispo.

As of this writing, the fee is about $52. Here’s the link to the county fees: https://www.slocounty.ca.gov/Departments/Clerk-Recorder/Forms-Documents/Fees/Fee-Schedule.aspx

2. Acquiring the City Business License. 

You’ll need complete the business application: https://www.slocity.org/home/showdocument?id=8083

You can mail it to: P.O. Box 8112, San Luis Obispo, CA 93403-8112 or drop it off at: 990 Palm Street, San Luis Obispo, CA 93401-3249 

If your business address is your home, you’ll need to complete this form and submit it along with your business application: https://www.slocity.org/home/showdocument?id=11454

You as the home owner, or your land lord will need to sign it. The city will post a small sign in front of your home for a couple weeks that a business permit is pending. 

The total cost for the business license for a home-based business located within the city limits is $226.96, as of this writing.

Here is the city “How do I get a business license?” page with more info:

https://www.slocity.org/doing-business/doing-business-in-slo/how-do-i-get-a-business-license

3. Setting up separate Business Checking & Savings accounts.

Next, I would go to either the current bank you use, or search for an online business bank to set-up separate business checking and savings accounts. You will usually need a copy of your business license for this. These accounts will further legitimize your business by keeping all your expenses and revenue separate from your personal bank accounts.

I like the idea of starting a separate credit history for your business as soon as possible by applying for a separate business credit card with which you can make only business expenses with. This will help keep your expenses separate from personal expenses. Obviously, proceed with caution when using any kind of credit card.

Eric Maldonado, CFP®, MBA, CKA®

Aquila Wealth Advisors, San Luis Obisop, CA