New Business Setup and Entity Selection in San Jose, CA
Pick the right structure, get the registrations done, and start with books that work, before the first dollar comes in.
Starting a business in San Jose means a dozen decisions in the first month that will follow you for years: what kind of entity to form, how to pay yourself, which registrations you need, and how to keep records from day one so you are not rebuilding them in your first tax season. Tower Accounting has walked new owners through this since 2000, and the ones who come to us before they file anything have the easiest first year.
We help you choose the right structure, get the registrations done, set up the accounting system, and sit down with you about taxes before the first dollar comes in.
What new business setup includes
- Entity selection. Sole proprietorship, LLC, S corporation or C corporation, decided on your expected income, partners, liability exposure and plans, not on what a friend did.
- Registrations. Federal EIN, California Secretary of State filing, Statement of Information, City of San Jose business tax certificate, CDTFA seller's permit, EDD employer account and county fictitious business name as applicable.
- Accounting system setup. A QuickBooks file built for your industry, bank and card accounts connected, and a simple routine for receipts and invoices you will actually follow.
- Owner pay and taxes. How you will take money out, what the quarterly estimates look like, and the deadlines calendared before you miss one.
- Hiring your first employee? We explain the EDD employer account and workers' comp basics and refer you to a payroll processor.
- Financial projections and cash flow forecast for a lender, an investor or just for you.
How it works
- Planning meeting. About an hour at the office. We talk through what the business will do, how much it should make, who is involved, and what you are worried about.
- Recommendation. A short written summary of the entity we recommend, why, what it will cost to form and maintain, and the registrations you need.
- Filings and setup. We prepare or walk you through the filings, get the EIN, and set up the books and the bank connections.
- First-quarter check-in. Ninety days in, we look at the actual numbers, adjust the estimates, and fix any habits that are going to cause problems later.
Why the first decisions matter
Entity choice changes your tax bill for years
A profitable sole proprietor pays self-employment tax on every dollar of profit. The same business as an S corporation pays it only on the owner's salary. At the right income level the difference is thousands of dollars a year, but below that level the S corporation's extra payroll and tax return cost more than they save. California's 800 dollar minimum franchise tax and LLC gross receipts fee change the math again. We run your numbers both ways before you decide.
Mixing personal and business money is the original sin
Nearly every catch-up bookkeeping project we do started with a business run through a personal account. It makes the books harder, the deductions weaker, and the liability protection of an LLC questionable. A separate account and a separate card on day one solves it permanently.
Missed registrations come with penalties
Selling taxable goods without a seller's permit, paying an employee without an EDD account, or operating in San Jose without the city business tax certificate all generate notices and penalties, usually a year or two later when the agencies match records. Getting them done in the first month costs less than getting the letter.
A lender reads the books before the pitch
Banks and SBA lenders want to see organized financials, a realistic projection and a cash flow forecast that shows you can make the payment. Owners who show up with a reconciled set of books and a clear plan get a different reception than owners who show up with a bank balance. We prepare the package and tell you honestly if it is ready.
Pricing
New business setup is quoted as a project after the planning meeting, and the quote covers the entity recommendation, the registrations we handle, the accounting system setup and the first tax meeting. State and city filing fees are passed through at cost and listed up front.
After launch
Most new business clients move onto monthly bookkeeping so the system we set up keeps running, and we prepare the first business and personal returns together. If you are already operating and wondering whether you picked the right structure, the same conversation applies. Call or email to set up a planning meeting.
Questions about new business setup in San Jose
Should I form an LLC or an S corporation in California?
It depends on expected profit, whether you have partners, and how much liability protection matters. An LLC is simpler and costs California a minimum of 800 dollars a year plus a fee based on gross receipts. An S corporation can save self-employment tax once profits are high enough to justify payroll and the extra return. We walk through your numbers and give you a straight answer.
What registrations does a new San Jose business need?
Typically a federal EIN, a California Secretary of State filing if you form an entity, a City of San Jose business tax certificate, a seller's permit from the CDTFA if you sell taxable goods, an EDD employer account if you hire, and a fictitious business name filing with Santa Clara County if you operate under a name other than your own. We help you get each one.
Can I start as a sole proprietor and change later?
Yes, and many businesses do. The books, the bank account and the tax ID are set up so that converting to an LLC or electing S corporation status later is a clean transition rather than a restart.
How much does new business setup cost?
We quote a project fee after the planning meeting that covers the entity choice conversation, the registrations we handle, the accounting system setup and your first meeting on taxes. State filing fees are separate and we tell you what they are up front.
Do you help with a business plan for a bank loan?
Yes. We help with the financial projections, the cash flow forecast and the organized records a lender wants to see, and we tell you honestly whether the numbers hold up before you walk into the bank.
What should I do in the first 90 days?
Open a separate business bank account, set up the books before the first transaction, decide how you will pay yourself, calendar your tax deadlines, and get your first quarterly estimate figured out. We cover all five in the setup meeting.
Ready to get your books and taxes in order?
Call the office, send an email, or request a free quote online. Ray answers the phone himself and returns messages the same business day.