Welcome
Starting a business? We’re here to help.
This website will guide you through the business permitting process in Santa Cruz, CA.
You’ll learn what regulations and fees apply to your business, and we’ll help you get started on — or, in some cases, complete! — the paperwork you’ll need to file to open your doors.
Let’s begin by learning about the big picture →
The Big Picture
Here's how to start a business in the City of Santa Cruz.
- First, secure a use permit from the City’s Planning Department. If you’re starting a business, even if you're working from home, the City has to approve that use in your location.
- Next, if you’re doing any renovations or tenant improvements, get a building permit from the City of Santa Cruz Building Department.
- Finally, obtain a business license from the City of Santa Cruz Finance Department.
While that covers most City processes, there are also county, regional, state, and federal regulations that may apply to your business. We’ve included tools to help you research and fulfill those requirements, too.
Before we walk through these steps, know that we’re here to help →
We’re Here To Help
When starting a business, it’s helpful to have someone to talk to. The following people & organizations are here to help.
The Santa Cruz Planning Department
The Planning Department will be your business’s main point of contact within city government.
The planning department's public counter is currently OPEN. Come on by!
The planning department's public counter is currently CLOSED. Email us →
You are always welcome to visit the Planning Department in person.
The Planning Department’s public counter is located in City Hall, on the annex building’s second floor, in room 206.
Santa Cruz City Hall
809 Center Street
Room 206
Santa Cruz, CA 95060
Telephone: (831) 420-5100
Fax: (831) 420-5434
Email: planningcounter@cityofsantacruz.com
The public counter is open Monday – Thursday, 7am – 12pm.
Staff are available by phone or appointment only, Monday – Thursday, 1pm – 5pm.
The Central Coast Small Business Development Center (SBDC)
The Central Coast Small Business Development Center at Cabrillo College offers a wide variety of services for present and potential small business owners. All counseling services are confidential and free of charge. The SBDC is unable to provide counseling for tax or legal issues, but they can provide referrals in your area.
Visit the Central Coast Small Business Development Center (SBDC).
Santa Cruz Public Libraries
The Santa Cruz Public Libraries have a reference desk and an online guide to starting a business.
Visit the Santa Cruz Public Libraries.
The Office of Economic Development
The Economic Development Department helps develop tools (like OpenCounter!) and policies that make it easier to start, sustain and grow businesses on the Central Coast. Staff collect and maintains market data, act as a concierge for City services, and are on call to help you through the process of setting up shop in Santa Cruz.
Visit the Office of Economic Development.
California Secretary of State
The Secretary of State’s office has a general overview of how to start a business.
Visit the California Secretary of State.
Your broker, property manager, or landlord.
These folks have probably been through this process before and can offer helpful pointers.
That’s us. Next, tell us about yourself →
Tell us about yourself.
The rest of this guide is tailored to you and your business.
About you
About your business
Nice to meet you, !
Your business's location
Where will you be working from?
Working From Home
You can work from home as long as you're not negatively impacting the neighborhood by increasing visitors or traffic, creating a lot of noise, or working with hazardous materials. You also can't have a sign on your home advertising the business.
More precisely: work-from-home businesses — known as "home occupations" — need to follow the rules outlined in section 24.10.160 of the city of Santa Cruz's Municipal Code.
Read Santa Cruz Municipal Code 24.10.160. It won't take long! We'll wait.
- Intent. The discretionary approval of a home occupation is intended to allow for home enterprises, which are clearly incidental and secondary to the use of the dwelling unit and compatible with surrounding residential uses. A home occupation allows for the gainful employment in the home by any occupant of a dwelling so long as the enterprise does not require frequent customer access or have associated characteristics which would reduce the surrounding residents? enjoyment of their neighborhood.
- General. A home occupation shall be operated and maintained only by a resident of the dwelling unit in which it occurs; shall not employ any help other than the members of the resident family or household; shall not change the residential character of the dwelling units; shall not generate a vehicular traffic increase of more than six trip ends (three round trips) per day including deliveries and clients.
- Restrictions. A home occupation shall not involve:
- The use of an area greater than four hundred feet;
- The use of any required front or exterior side yard area or setback area, nor the use of any required covered or uncovered on-site parking space;
- Any activity or use which involves:
- A significant increase in vehicular trips to the residence;
- Storage or use of hazardous or unsanitary materials;
- Creation of noise levels exceeding the standards of this title and/or other nuisance factors inconsistent with Chapter 24.14, Part 2: Performance Standards;
- Auto/truck/motorcycle/motor boat repair.
- The placement of a sign advertising the business.
- Permits Required. A zoning clearance and business license shall be required, except for small family day care which is exempt from local regulations.
You've told us that you're working from home.
Where do you live?
Siting Your Business
If you’re not working out of your home, you will need to pick a location that is zoned to allow businesses like yours to operate.
Zoning
Zoning laws limit the types of businesses that can operate within a particular area.
Why? By clustering types of businesses, we can help preserve neighborhoods and share services.
Think of it this way: zoning makes sure a rubber factory can’t open next to a preschool.
In Santa Cruz, all zones are defined by title 24 of the City’s municipal code.
Use & Prior Use
A good tip for finding a location that permits your use is to pick a space with a prior use as similar to yours as possible.
This will make it more likely that your use will be approved.
If the past use matches your use, the zoning will match and parking will likely not be an issue.
For example, if you are opening a restaurant, try to go into a space that previously held a restaurant.
Have you already picked out a space for your business?
Not yet. Help me choose a site →
Find a site for your business
SiteMy.Biz is a helpful tool to find available commercial space in Santa Cruz.
Example: 1367 Pacific Avenue
Check Your Business’s Zoning
You've told us that your business is of type [business type] (NAICS code ).
What is your business's physical address?
Requirements
Based on what you've told us about your business, let's walk through all of the requirements.
Use Permit
The type of use permit your business needs depends on whether and how your zoning district permits your use.
Principally Permitted Uses
If the zoning code specifically allows your type of business to operate at the site you chose, great!
All you need is a Zoning Clearance. This is the simplest form of a use permit, and is typically issued the same day, with minimal review.
DEMO: Select Principally PermittedNon-Principally Permitted Uses
If your use is not principally permitted, you will need either an Administrative Use Permit or a Special Use Permit.
Administrative Use Permit (AUP): This kind of application requires more staff analysis, and more information from the applicant. These permits entail a public hearing before the Zoning Administrator, and can take approximately 6-8 weeks to work their way through to completion.
Special Use Permit (SUP): Requires a high level of scrutiny, typically due to the size of the project and its impact on the neighborhood. These applications go to Planning Commission, whose decision is ratified by the City Council. SUPs take 2-3 months.
DEMO: Select Non-Principally PermittedProhibited Uses
If your use is explicitly prohibited, you should probably choose a different site for your business.
The alternative, changing the zoning for that property, is very difficult, rare, and can take years. It is not recommended, but you are welcome to contact the Planning Department for more information.
DEMO: Select ProhibitedGo back and pick type of location
You've told us that you're working from home, and you've confirmed that your business complies with Santa Cruz Municipal Code 24.10.160.
The use permit you need is a Zoning Clearance. You'll need to submit it to the Planning Department, and the fee is $221.00.
Fill in as much as you can below.
Next: Building Permit →
You've told us that you're working from 123 Anystreet Place, Santa Cruz, CA 91234, and your business is of type [business type here].
This use is principally permitted at this location.
The use permit you need is a Zoning Clearance. You'll need to submit it to the Planning Department, and the fee is $221.00.
Fill in as much as you can below.
Next: Building Permit →
You've told us that you‘re working from 123 Anystreet Place, Santa Cruz, CA 91234, and your business is of type [business type here].
This use is not principally permitted at this location.
You will need either an AUP or a SUP to site your business here.
Contact the Planning Department for next steps.
You've told us that you're working from 123 Anystreet Place, Santa Cruz, CA 91234, and your business is of type [business type here].
This use is prohibited at this location.
Siting your business here will require changing the City of Santa Cruz's zoning; this is a difficult process and can take years.
Contact the Planning Department for next steps.
Building Permit
Will you be doing tenant improvements or renovation?
Yes, I will be doing some renovation work.
No. Next: Parking →
No. Next: Business License →
Fill in as much as you can below.
Next: Parking →
Next: Business License →
Parking
First you need to Check your site
Downtown Businesses
If your business is downtown, you don't need to provide any parking spaces, but you will need to pay a Parking Deficiency Fee.
Non-Downtown Businesses
Your business needs to provide parking spaces.
Please select your specific business type below
Automobile or machinery sales and service garages
Rules:
- 1 parking space for each 400 square feet of floor area
Automobile service stations
Rules:
- 3 spaces for each lubrication or service bay
- 1 space for each employee on the day shift
Banks with automatic teller machines
Rules:
- 1 space for each 400 square feet floor area
- 1.5 spaces for each ATM machine
Banks without automatic teller machines
Rules:
- 1 space for each 400 square feet floor area
Billiard parlors
Rules:
- 1.5 spaces for each table
Children’s Homes
Rules:
- 1 space for each 5 beds
- 1 space for each employee
Family daycare and foster family homes
Rules:
- 1 space for every 5 guests
- 1 space for the resident owner or manager
Communications equipment buildings
Rules:
- 1 space for each 1‚000 square feet of floor area
Elementary and junior high schools
Rules:
- 1 space for each employee
High schools
Rules:
- 1 space for each employee
- 1 space for each 10 students
Colleges and universities
Rules:
- 1 space for each employee
- 1 space for each 3 students
Multi-program fitness facilities
Rules:
- 1 space for each 100 square feet of floor area
- If floor space exceeds 15‚000 square feet‚ an additional 10% of parking spaces required
Single-program fitness facilities
This one is a little complicated. Look at each rule‚ and see if it applies to you. Each "Calculate" button will add to the total number of spaces at the bottom. Leave any field blank that doesn't apply to you.Rules:
- Aerobics: 1 space for each 50 square feet of floor area
- Basketball & volleyball: 1 space for each 3 persons of occupancy
- Lap pool: 2 spaces per lane
- Lap pool: 1 space for each 300 square feet of non-pool floor area (area that is not water)
- Weightlifting: 1 space for each 250 feet of floor area
- If total floor space exceeds 15‚000 square feet‚ an additional 10% of parking spaces required
Restaurants‚ bars‚ other food service establishments‚ and nightclubs without live entertainment
Rules:
- 1 space for each 120 square feet of floor area
Restaurants with counter‚ take-out‚ or drive-in service
Rules:
- 1 space for each 120 square feet of floor area
- 1 space for each 50 square feet of floor area devoted to counter/take-out service
Funeral homes & mortuaries
Rules:
- 1 space for each 5 seats of the aggregate number of seats provided in all assembly rooms
Furniture repair
Rules:
- 1 space for each 500 square feet of floor area
Sports arenas‚ auditoriums‚ assembly halls‚ and meeting rooms (all with fixed seats)
Rules:
- 1 space for each 3.5 seats of maximum seating capacity
Dance and exhibition halls and assembly halls without fixed seats
Rules:
- 1 space for each 3 persons of design occupancy load
- Excludes church assembly rooms in conjunction with auditoriums
Furniture & appliance stores and household equipment
Rules:
- 1 space for each 800 square feet of sales floor area
Self-service laundry and dry cleaning establishments
Rules:
- 1 space for each 200 square feet of floor area
Community care residential facilities
Rules:
- 1 space for each 5 guests
- 1 space for the manager
- 1 space for each employee on the shift with the maximum number of personnel
Hotels and Motels
Rules:
- 1 space for each unit intended for separate occupancy
- 1 space for the resident owner or manager
Convalescent hospitals
Rules:
- 1 space for each 5 beds
- 1 space for each employee on the shift with the maximum number of personnel
Hospitals
Rules:
- 1 space for each bed
- 1 space for each employee on the shift with the maximum number of personnel
Medical and dental clinics and offices
Rules:
- 1 space for each 200 square feet of floor area
Physical therapy
Rules:
- 1 space per 200 square feet of floor area
- 1 space per 50 square feet of pool (water) area
Business and professional offices
Rules:
- 1 space for each 300 square feet floor area
- Excludes medical and dental offices
Manufacturing, bottling, and processing plants
Rules:
- 1 space for each 500 square feet of floor area
Independent recycling collection facilities
- Total: 2 spaces
Recycling facilities in conjunction with other uses that provide required parking
- Total: No spaces!
Research & development
Rules:
- 1 space for each 325 square feet of floor area
- or 1 space for every 2 employees (maximum shift)‚ whichever is greater
Retail stores, shops, service establishments, & shopping centers
Rules:
- 1 space for each 250 square feet of floor area
Boarding homes for the aged
Rules:
- 1 space for each 5 beds
- 1 space for each employee
Institutions for the aged
Rules:
- 1 space for every 5 guests
- 1 space for each employee on the shift with the maximum number of personnel
Nursing homes
Rules:
- 1 space for every 5 guests
- 1 space for the resident manager
- 1 space for each employee on the shift with the maximum number of personnel
Theaters
Rules:
- 1 space for each 3.5 seats for the first 350 seats
- 1 space for each 5 additional seats
Wholesale, warehouses, and service & maintenance centers
Rules:
- 1 space for each 1‚000 square feet of floor area
Houses of worship
Rules:
- 1 space for each 3.5 seats in the sanctuary
Other Local Requirements
TBD.
- Traffic Impact Fee
- Business Improvement District Assessment
- Environmental Health & Safety
- Waste Water Discharge
- Utility Services
City, State, and Federal Regulations
Fictitious Business Names (or, what’s in a name?)
If the name of your business does not contain your last name, you will need to apply to Santa Cruz County for a Fictitious Business Name (FBN).
For example, if your last name is Smith and your business is called "Smith’s Tanning," you won't need an FBN. But if your business is called "Eastside Tanning," you will need an FBN.
You've told us that your name is Annie Oakley and your business's name is Oakley Get Your Gun, Inc.
This means you won't need an FBN. Next →
This means you will need an FBN.
To get a FBN from the County of Santa Cruz, you'll need the following information:
Fictitious Business Name Street Address of Principal Place of Business City, State, ZIP Mailing Address if Different Registered Owner(s):| Full Name | Residence Address | City | State | ZIP | If corporation or LLC, state of incorporation/organization |
|---|
Incorporation
You don't need to incorporate to start a business in Santa Cruz, but it should be something you think about.
For more information on incorporation, speak with an accountant or visit The California Business Portal.
- Seller's Permit
- Limited Liability Partnership Registration
- Limited Partnership Registration
- Articles of Incorporation Filing
- Registration with EDD (Payroll Tax form)
- IRS EIN Application (Sole Proprietor)
- IRS EIN Application (Corporation; S-Corp; etc)
- IRS EIN Application (LLC)
Business License
TBD.
Summary & Next Steps
TBD.
Contact Us
Send the Planning Department your question here, and we'll respond within 4 business days.
If you need to speak with someone sooner than that, here's how to contact the Planning Department.
Thanks!
Thanks for contacting us. We will get in touch with you within 4 business days.
If you need to speak with someone sooner than that, here's how to contact the Planning Department.
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