HomeMy WebLinkAboutDoing Business in Palm Desert Revised 3192024DOINGBUSINESS INPALM DESERT
www.palmdesert.gov
Are you looking to open a business
in the Coachella Valley?
Well, the City of Palm Desert would be
proud to partner with you on this
venture. Called the 'heart of the valley,'
Palm Desert is a fast-growing and
dynamic community.
A standout reason businesses choose
Palm Desert for the support and care
provided by our Development Services
and Economic Development teams. The
City is invested in your success and has
created the following guidebook to
streamline the process of opening a
business in our great city!
We invite you to come grow with us!
New Business
Roadmap
1. Starting a Business
2. Choosing to do Business
in Palm Desert
3. General Business
Information
4. Trash and Recycling
Services
5. Economic Development
Support
https://www.cvwbc.org/
Coachella Valley Women’s Business Center
Palm Desert Office (760) 345-9200
77806 Flora Rd. Suite A, Palm Desert, CA 92211
https://ociesmallbusiness.org/coachella-valley/
Small Business Development Center – Coachella Valley
Indio Office (760) 848-4096
44-199 Monroe Street, Suite B, Indio, CA 92201
Once you are ready to start your business, you must decide on a business structure. Different types
of business structures include a Sole Proprietorship, a Partnership, a Limited Liability Company, a
Cooperative, and a corporation. Click here for a brief overview of various business structures the
State of California provides.
This guide is designed to help you through the various agencies and steps involved in starting your
business.
Just starting a business:
When thinking about starting a business, creating a business plan is advisable.
Below are local organizations that can assist you in developing a business plan and offer advice on
business structure:
1. STARTING A BUSINESS
State:
For state taxes and a Sales Tax ID number, visit
www.cdtfa.ca.gov/services/permits-licenses.htm
California Department of Tax and Fee Administration
Rancho Mirage Office (760) 770-4828
35900 Bob Hope Dr. Ste 280, Rancho Mirage, CA 92270
County:
Every person who conducts a business in the State under a fictitious business name, any name
other than your surname, has more than one owner, or to check against infringing on another
business name, you will need to file a “Fictitious Business Name” (FBN) with the County Clerk’s
Office.
Unlike real property, business property is reappraised annually. For assessment purposes, a
business owner must file a property statement each year with the County Assessor’s Office.
County of Riverside Offices
4080 Lemon St. Riverside, CA 92501
(951) 955-1000
https://www.rivcoacr.org/
County Assessor
38686 El Cerrito Rd, Palm Desert, CA 92211
(800) 746-1544 or (760) 863-8732
County Recorder/County Clerk
38686 El Cerrito Rd, Palm Desert, CA 92211
(800) 696-9144
Once you have completed all the above, you are now ready to register your business with the City.
Now that you have established your business structure and decided on a business name, it is time
to register your business to make it legal. Register with Federal, State, and County tax entities; see
below.
Federal:
For the purpose of tax administration, contact the Internal Revenue Service (IRS) about an
Employer Identification Tax Number (EIN) and, if applicable, a
Self-Employed Individuals (SE) tax.
www.irs.gov
www.irs.gov/Individuals/Self-Employed
Palm Springs Office (844) 545-5640
556 S. Paseo Dorotea, Palm Springs, CA 92264
A warm welcome to the City of Palm Desert! We extend our heartfelt gratitude for selecting our city
as the destination to launch your new business or to cater to our residents and visitors from areas
beyond our city borders. The information provided below serves as a valuable resource to guide
you through the upcoming phases.
2. STARTING A BUSINESS IN PALM DESERT
If you plan to conduct business from a commercial, industrial, or home location, contact the
Planning division to verify that your business is allowed by the Zoning Ordinance and obtain
Planning approval to receive a Palm Desert Business License.
A City Planner can answer any questions related to zoning restrictions on specific properties or
regions of the City. Once you have confirmed your business meets zoning requirements, you can
apply for a Business License and/or a Home Occupation Permit.
Visit the City of Palm Desert Planning web page for more information about the zoning process, or
contact the Planning Division by email at planning@palmdesert.gov or by calling 760-776-6483.
When Selecting a Location
Considerations may include building use, occupancy, parking, utilities, and building alterations.
Certain locations may need interior or exterior improvements, which may require additional
permits. After meeting with the Planning Division, we encourage you to meet with our Building
and Safety Division, who can clarify permit needs and their associated costs.
Where Can I Do Business in Palm Desert? What Should I Consider When
Selecting a Location? What is Required?
See the following Palm Desert Municipal Codes:
5.04.070 Exemption for charitable and nonprofit organizations.
5.04.080 Exemption for disabled veterans.
5.04.090 Exemption for minors.
5.04.100 Exemption for artists and art exhibits and those individuals on retirement pension.
The process of obtaining a business license can be found at https://palmdesert.hdlgov.com/
Home-based businesses can apply at
https://palmdesert.hdlgov.com/Home/Home/BusinessLicense
Permits are required for various types of work or installations, so please contact the Permit Center
at 760-776-6435 to find out about regulations governing any of the following: Sign installation, new
walls or ceilings to be constructed, new plumbing or electrical work, ADA and so forth.
Items that frequently need City permits include:
Requirements - Licenses & Permits:
Business License:
All businesses operating within the city limits of Palm Desert (including home-based businesses)
are required to have a Business License per the City of Palm Desert Municipal Code Section
5.04.030. Click here for the Business License Fee Schedule.
Exempt Activities:
Some businesses are exempt from paying a business tax but must still apply for a business tax certificate.
SIGNS:
A separate sign permit is required if your business will install, modify, or replace a sign. This
includes temporary signage and banners. The City must approve the sign application before
the sign is manufactured and installed. Contact the Planning Division for more information.
Home-Based Business - Home Occupation Permit:
If your business will operate out of your home, such as a home office, it will require a Home
Occupation Permit in addition to a Business License. Please contact the Planning Division to
discuss the type of business you intend to operate and disclose any limitations or restrictions.
Generally, the intention of a home office is that your business operates from a residential
address without modifying the existing residential use of the property. See Palm Desert
Municipal Code 25.34.020 for information.
Grand Openings - Temporary Use Permits (TUP):
To help advertise, most commercial businesses may choose to have a grand opening. A
Temporary Use Permit allows you to advertise a grand opening for 30 days. Inquire with a
planner regarding a grand opening event.
Additional Permits:
Some businesses require additional permits if offering certain types of services. These
include but are not limited to dancing, entertainment, cannabis regulatory permits, tobacco
sales, massage, mobile vendors, taxicab companies, and taxicab drivers. Contact License
Services for additional information: https://palmdesert.hdlgov.com/.
How to Apply for Permits
Planning and Building Permit applications: https://www.palmdesert.gov/our-
city/departments/planning/permit-types
Fire Permit: https://www.rvcfire.org/our-departments/fire-marshal#construction
Additional licenses or permits from other agencies may be needed depending on your type of
business. For example, if you are opening a restaurant, you need to obtain a Health Permit from the
Riverside County Health Department.
Riverside County Health Department:
If your business is food sales, public pools/spas, tattooing, body piercing, permanent
cosmetics, cosmetology, or is a business that may require a health permit.
California Seller’s Permit:
If you sell or lease merchandise, vehicles, or other tangible personal property in California, you
are required to obtain a California Seller’s permit.
www.rivcoeh.org
Riverside County Environmental Health
(760) 863-8287
47-950 Arabia St, Suite A, Indio, CA 92201
If your business is a home-based kitchen, you must also have a health permit.
www.cdtfa.ca.gov/services/permits-licenses.htm
California Department of Tax and Fee Administration
(760) 770-4828
35900 Bob Hope Dr. Ste 280, Rancho Mirage, CA 92270
Additional Licenses and Permits
Alcoholic Beverage License:
If your business is considering selling or serving alcoholic beverages, you will need to contact
Alcohol Beverage Control (ABC) for additional information.
www.abc.ca.gov
Alcohol Beverage Control
(760) 324-2027
34-160 Gateway Dr. Suite 120, Palm Desert, CA 92211
Child Care Licenses:
The regulating authority for home daycare facilities is the State of California’s Health and
Human Services Agency. The Department of Social Services has a division for Community
Care Licensing, which issues Child Care licenses. The Child Care Licensing Program
distinguishes licenses for both Child Care Centers (CCCs) and Family Child Care Homes
(FCCHs) in California.
Short-Term Rentals (STR):
For guidelines on running a short-term rental in the City of Palm Desert, please visit the Short-
Term Rentals page on the City’s website.
Drone, Film & Video Permit:
Film permits are required for all entities, groups, and individuals who intend to film within the
boundaries of the City of Palm Desert. Requirements and an application can be found on the
Permit Center web page or by clicking here.
3. GENERAL BUSINESS INFORMATION
Basics:
Business Licenses are issued on an annual basis. The business license must be renewed every
year before the first day of the anniversary month. The City will send a renewal notice.
However, penalties are assessed for delinquent accounts, regardless of whether you receive a
renewal notice or not. At any time, if there are changes to the business license location and
ownership, you must notify HDL.
Business License & Certificate of Use:
Once you have determined a business plan, have all the necessary Federal, State, and County
requirements, and have an approved location identified for your business, you will be ready to
apply for a Palm Desert Business License. A business license is required before conducting
any business, trade, profession, enterprise, establishment, or occupation within the City of
Palm Desert. Each location of your business will require a business license, per Palm Desert
Municipal Code 5.04.030. Even if your business physical address is outside city limits but you
are conducting business in the city, you will require a business license.
Certificate of Use:
This application is connected with a business license. This will allow your business to operate
at a commercial or industrial location. This application clears your business to operate within a
specific zone. Zone designations will also reveal if your proposed business location will require
building improvements, parking requirements, or building occupancy requirements.
Additionally, Certificates of Occupancy may need to be reviewed if certain businesses change.
Costs & Fees:
The cost of a business license varies based on the type of business. Generally, a business tax
is calculated either on a flat rate or gross receipt. If the business tax is calculated on gross
receipts, you will be required to provide a 12-month estimate of gross receipts. Each year after
that, you will be required to remit proof of gross receipts to renew.
4. TRASH AND RECYCLING SERVICES
The City of Palm Desert contracts with Burrtec Waste Industries, Inc. to provide waste and recycling
services as the only franchised waste hauler within city limits. Please contact Burrtec at 760-340-
2113 or via email at customerservice@burrtecdesert.com to establish service.
Businesses are automatically enrolled into the City’s three container waste and recycling system. If
you do not generate organic waste, please get in touch with Burrtec for a free assessment.
Learn more: https://www.palmdesert.gov/our-city/departments/public-works/waste-management-
and-recycling-services
Burrtec Waste Industries, Inc. 760-340-2113
City of Palm Desert 760-776-6342
Edible Food Recovery:
Some Edible Food Generators are mandated by Senate Bill (SB) 1383 to recover and donate excess
food that would otherwise go to landfills. Generators are divided into two categories:
Tier 1 Edible Food Generators
Wholesale Food Vendors
Food Distributors
Food Service Providers
Supermarkets
Grocery Stores
(Effective January 1, 2022)
Tier 2 Edible Food Generators
(Effective January 1, 2024)
Hotels (with on-site food facilities and 200+ rooms)
Restaurants (over 5,000 sq. ft. or 250+ seats)
Health Facilities (with onsite food facilities and 100+ beds)
State Agency Cafeterias
Large Venues and Events
Local Education Agencies
If your business falls under either of the categories above, please connect with a food recovery
organization, such as FIND Food Bank, at (760) 775-3663.
5. ECONOMIC DEVELOPMENT SUPPORT
The City of Palm Desert is proud of our diverse and dynamic business sector. To best support
merchants in our community, the City created a position dedicated to assisting all existing and new
businesses. The Business Support position focuses on building and fostering relationships with our
business community and can assist new business owners through the processes outlined in this
resource guide.
To schedule a meeting with Palm Desert Economic Development staff member, please contact:
Vanessa Mager
Business Support & Outreach
760-776-6425
vmager@palmdesert.gov.
APPENDIX
Frequent Business Terms and Definitions:
Articles of Incorporation: Official documentation submitted to governmental authorities
to establish a corporation's legal existence.
Balance Sheet: A financial report displaying a business's assets and liabilities.
Business License: Legal authorization permitting a business to operate within a specific
jurisdiction.
Business Plan: A comprehensive written document outlining a business's objectives,
strategies, resources, financial projections, and organizational structure.
Capital: Funds utilized for operating and managing a business.
Cash Flow: The movement of funds into and out of a business, which can either be positive
(income exceeds expenses) or negative (expenses surpass income).
Certificate of Insurance: Document confirming a business's insurance coverage.
Compounding: The process of reinvesting profits to generate capital growth.
Demographic: A defined group sharing common characteristics, such as age, income,
gender, or location, often targeted by businesses for marketing purposes.
Depreciation: The reduction in value of an asset over time.
EIN: Employer Identification Number, serving as a unique identifier for a business entity,
akin to a Social Security number for individuals.
Equity: The total worth of a business if it were to be sold currently.
FICO: Company specializing in calculating credit scores for individuals and businesses.
HR: Human Resources department responsible for employment-related tasks within a
company.
Income Statement: Financial document summarizing a business's revenue and expenses
over a specific period.
Independent Contractor: A person providing services to a business without being
employed by it.
APPENDIX
Liability Insurance: Coverage protecting a business from claims resulting from injuries or
damages to people or property.
Limited Liability Company (LLC): Business structure offering separation of owners'
finances and business liabilities.
Liquidity: The ease with which assets can be converted into cash.
Outsourcing: Procuring goods or services externally rather than producing them in-house.
Profit Center: A division or segment of a business responsible for generating revenue and
incurring expenses.
Registered Agent: Individual designated to receive legal documents on behalf of a
business entity.
Retained Earnings: Profits retained by a business after covering expenses.
S-Corporation: A corporation whose profits and losses are passed through to shareholders
for tax purposes.
SBA: Federal agency providing support and resources to small businesses.
Secured Loan: Loan backed by collateral that the lender can claim if the loan is not repaid.
Shrinkage: Loss of inventory due to theft, fraud, or administrative errors.
Sole Proprietorship: Business owned and operated by a single individual without separate
legal status.
Unsecured Loan: Loan not requiring collateral.
Venture Capitalist: Investor providing funding to promising businesses in exchange for
ownership stakes.
Virtual Office: Business address utilized for correspondence purposes without physical
presence.