Thursday, September 14, 2017

Opening a Bar in Fallbrook, California

Your Fallbrook, California Restaurant and Bar

You will need approval of several government agencies, and many permits and licenses. The steps as outlined to open a bar in Fallbrook, California, can be time-consuming.

1. Research and plan

Research and planning can help you open your bar sooner and prevent unanticipated expenses. It takes proper research to compose a good business plan. The business plan should be concise, direct and reasonable. A plan needs to project the amount of capital needed. Any new bar will require significant amounts of funding. Expenses for opening a bar will include prepaid rent, a security deposit, tenant improvements and renovations, license and permit expenses, equipment and furniture, inventory, deposits for utilities, funds to assure payroll, insurance premiums, advertising purchases, marketing or public relations fees, telecommunications, internet, cable, Adwords, Opentable, website development, and no doubt some other unknown and unexpected fees and costs.  Allow a reasonable cushion for unknown costs.

2. Form a business entity and name it

Owning a bar in Fallbrook, California exposes the owner to liabilities. In the event of a lawsuit, it would be preferable to own the bar in a corporation or a limited liability company, to limit the exposure of your own personal assets.

Small businesses most often choose to form an LLC.

LLC's normally are taxable as partnerships but can elect to be taxed as S corporations in the first year or future years.

There also is an option to form a Delaware LLC or a California LLC or a Nevada LLC.

Importantly, you should choose an available business "brand" name and purchase a domain name.

Employer Identification Number (EIN or SSN)

Employers with employees, business partnerships, and corporations, must obtain an Employer
Identification Number from the I.R.S. Businesses can obtain appropriate Federal income tax forms
from this location.
agency note:
applies to:
Restaurant
U.S. Department of
Internal Revenue Service 880 Front Street, Suite 129 San Diego, CA, 92101 Phone: 619-615-9555
/Small-Businesses-&-Self-
/Apply-for-an-Employer-Ide Number-(EIN)-Online)
 

Names are important, and a business may even want to operate under a fictitious name.

 

State Income Tax Information

Businesses should obtain the appropriate State income tax forms from the Franchise Tax Board.
agency note:
All businesses are required to submit a Business Income Tax statement annually.
Franchise Tax Board
Business Entities Division PO Box 1468
Sacramento, CA, 95812
Phone: 800-338-0505
/businesses
/index.shtml?WT.mc_id=Gl
 

Fictitious Business Name - Doing Business As Statement

A Fictitious Business Name (FBN) or Doing Business As (DBA) statement is required when the
business name does not include the surname of the individual owner(s) and each of the partners; or the
business name suggests the existence of additional owners; or the nature of the business in not
clearly evident by the name of the business. For example Bill Smith and Sons Plumbing would require
a FBN because the name implies additional owners, Bill Smith Plumbing does not require a FBN. Bill
Smith Industries would require a FBN because it does not identify the nature of the business.
County of San Diego
Clerk/Recorder/Assessor
agency note:
Filing may also be completed at Offices in Chula Vista (619) 498-2200, El Cajon (619) 441-4480, and
San Marcos (760) 940-6858. July 15, 1998: The County's Business Certificate Tax (BUSINESS LICENSE)
is being repealed and no new applications or renewals are required at this time. Call County for
further details.
applies to:
Fictitious Business Name 1600 Pacific Highway, Rm.
P.O. Box 121750 (Zip Code San Diego, CA, 92101 Phone: 619-237-0502 website (https://arcc.sdcou
/Pages/default.aspx
 

3. Location

Zoning ordinances may limit where you can open a bar, so check with your area’s Department of City Planning or other government agency to see if bars are allowed in your desired location. If you are renovating location, you should present your building plans with your area’s department of building inspection and fire department to ensure that those plans are in compliance with laws governing public safety and accessibility.

Leases should probably be transferable if you sell your bar later, with options to extend, and contingencies regarding securing and maintaining permits.It also makes sense to try to obtain a non-disturbance agreement with the landlord and its lender or future lender.

Land Use Permit/Zoning

Required if located in the unincorporated part of the county.
County of San Diego
Planning and Development 5510 Overland Avenue, 1s (Ste.110)
San Diego, CA, 92123 Phone: 858-565-5920
/content/sdc/pds/ce5.html)
 

Authority to Construct/Permit to Operate

Required if any person constructs, alters, replaces or operates any units that emit, may emit, or
may reduce air emissions within the Region. An Authority to Construct must be obtained before
building or installing a new emissions unit or modifying an existing emissions unit that requires a
permit. A Permit to Operate is issued after all construction is completed and the emission unit
is ready for operation. A permit is required for any sanding, coating, painting or the venting of
vessels into the air. In addition, a Portable Equipment Registration is needed for any portable
welders (over 50-hp) you operate (i.e. welding shops).
AQMD (Air Quality
Management Distric of San Diego
Air Pollution Control Distric 10124 Old Grove Rd
San Diego, CA, 92131 Phone: 858-586-2600
Fax: 858-586-2601
/sdc/apcd/en/engineering/P
 
 

Building Permits

Building and construction, including change of occupancy. Facility location may require a zoning
verification or a Conditional Use Permit. Call for specific information.
applies to:
Restaurant
County of San Diego
Community Services Building Division
5510 Overland Ave., Suite San Diego, CA, 92123 Phone: 858-565-5920
/community-services/permi
 
 

Environmental Health Permits

Includes but is not limited to public swimming pools, underground storage tanks, x-ray equipment,
water wells, septic systems, sewage pumper trucks, and solid waste handling & composting.
applies to:
Restaurant
County of San Diego
Environmental Health Dep
P.O. Box 129261
San Diego, CA, 92112 Phone: 858-505-6700
/deh/doing_business/forms
Restaurant
 

Fire Prevention Information/Inspection

Businesses may be subject to a yearly inspection of facility-annual fee may be charged depending on
type of business. (applies to only unincorporated areas)
agency note:
There are a number of fire service agencies serving the unincorporated area. Contact the nearest
fire district or the County Fire Services Coordinator.
County of San Diego
San Diego County Fire Aut Fire Prevention
5510 Overland Avenue, Su San Diego, CA, 92123 Phone: 858-974-5999
Fax: 858-467-9662

4. Agree on funding

Funding for your bar can be made through contributing your own cash or assets, investment from your friends and family, a bank loan, a line of credit, or a business partner. Your new bar may even qualify for a government program designed to assist small businesses. Agree on funding amounts and timing relative to benchmarks.

5. Register and apply for a permit with the US Treasury Department's Alcohol and Tobacco Tax and Trade Bureau

All businesses that sell alcohol products must register with the US Treasury. You must file a TTB D 5630.5d Alcohol Dealer Registration before opening. The average processing time for a permit is about two months for online applications and three months for mailed applications. A de-registration is necessary when you discontinue business.

California imposes a tax, too.

Alcoholic Beverage Tax

Entities selling, manufacturing, importing or distributing alcoholic beverages must register
State Board of Equa
Special Taxes Department PO Box 942879
Sacramento, CA, 94279
Phone: 800-400-7115
/alcoholic_bev_tax.htm) For more information... (http://www.boe.ca.gov/info

6. Obtain an alcohol license

Liquor licenses are administered by the California Department of Alcoholic Beverage Control. You can seek a license for just beer and wine or for all spirits. The type of license you’ll need is a “42” for a beer and wine license, or a “48” for a beer, wine, and distilled spirits license. The other licenses, like the "47" require at least 50% of your revenue to come from food. This could be a substantial burden.

Be prepared to wait at least three months for the license to be issued. After applying, a notice will be posted at your location to alert the general public that you plan on serving alcohol. They will have 30 days to complain about your intentions. If there are no significant objections to your application by the public, then the department will begin a background investigation on the individuals listed on the application, the location of your business, and the business in general. You could also try looking into alcohol licenses for sale by someone who already went through the process, but keep in mind that you will likely pay extremely inflated prices for such licenses.

 

Alcoholic Beverage License

Any person or entity seeking to sell alcoholic beverages must be licensed. Apply for the license in
person and allow a minimum of 45 to 50 days to process the application. The law precludes issuance
in less than 30 days.
Department of Alcoh Beverage Control
Southern Division
12750 Center Court Drive, Cerritos, CA, 90703
Phone: 562-402-0659
/PDFall.asp)
 


 

7. Miscellaneous permits

Running a bar requires several permits and licenses:

Food Safety Certification: California law requires a food facility to have at least one employee/owner that has passed a state-approved Food Safety Certification exam.

Food handler permit: If you are serving food, all employees that handle it must have a permit to do so. A “food handler” is someone who works in a facility with food and involved in the preparation, storage, or serving of food. Instructions and frequently asked questions about obtaining this permit can be found on Foodhandler USA’s website.

California law requires employers to maintain records documenting that each employee that handles food has a valid food handler permit. New employees have thirty days to obtain the permit.

Food Establishment Permit - Health Permit

Required if you prepare and/or sell food or food products to the public (including packaged food).
Includes restaurant, retail market, vending vehicles, push carts, etc.
County of San Diego
Environmental Services De Food and Housing Division 9601 Ridgehaven Court, S PO Box 129261
San Diego, CA, 92123 Phone: 858-505-6700
/deh/food/publications.html
 

Health Permit

Required for all retail markets, bars, restaurants, catering trucks and mobile food preparation
vehicles, health food stores, temporary event food booths, vending machines
agency note:
Application for Public Health Permit required for class B Cottage Food Operations (direct and
indirect sales).
County of San Diego
Environmental Health Dep 5500 OVERLAND AVE # 1 SAN DIEGO, CA, 92123 Phone: 858-505-6666
Fax: 858-505-6848
/deh/food
/pdf/publications_permitap
 
 

Sheriff Permit/Licenses

These licenses and permits are usually for business services regulated by County ordinance and
require investigation and/or overview by the County Sheriff's Department. Categories include, but
are not limited to, entertainment, firearms, pawnshops, taxicabs, and massage/adult businesses.
agency note:
Office hours are Monday thru Thursday 8:00 a.m. to 4:30 p.m., Friday 9:00 a.m. to 4:30 p.m.
County of San Diego
Sheriff's Department 9621 Ridgehaven Ct
PO Box 939062
San Diego, CA, 92193 Phone: 858-974-2020
/fees.html)
 

Sales & Use Permit (Seller's Permit)

All businesses selling or leasing tangible property must obtain a Seller's Permit.
agency note:
For Additional information about RESALE CERTIFICATE go to this website: www.boe.ca.gov/sutax
/faqresale.htm
State Board of Equa
Sales/Use Tax Division PO Box 942879
Sacramento, CA, 94279
Phone: 800-400-7115
/info/reg.htm)
For more information... (http://www.boe.ca.gov/info
 
 

8. Optional Stuff:

Sign license: Your city may restrict the type of signage you display outside your restaurant. Before you display a sign, check with your landlord and local government to ensure that it does not violate any laws.

Music license: If you plan on playing music in your bar, you will need to obtain a music license from at least one of the major music licensing companies, like Broadcast Music, Inc. (BMI) and the American Society of Composers, Authors and Publishers (ASCAP). Each of those has a repertoire of over a million songs, so if you randomly play any song, you might owe royalties to both. The yearly fees these companies charge can be quite expensive, but without a proper music license you can be held liable. In 2011, a restaurant was ordered to pay over $30,000 in damages plus $10,000 in legal fees to BMI for failing to obtain a music license and ignoring BMI’s requests for yearly fees.

It would be wise to purchase commercial liability insurance for your small business. This will protect your business from financial loss stemming from lawsuits filed by employees or others.

9. Employ staff

Hiring the right people to work at your bar can help with its initial success. Depending on the type of bar, you may want to hire managers, wait staff, cooks, dishwashers and bus boys. You should hire adequate security to check identification at the door and break up potential bar fights.

More information on hiring employees and complying with employment laws can be found on the
California Governor’s Office of Business and Economic Development website.

Occupational Safety and Health Information

Businesses with employees must prepare an Injury and Illness Prevention Plan. The state provides a
no-fee consultation service to assist employers with preventing unsafe working conditions and
workplace hazards.
Department of Indus Relations
Cal/OSHA Consultation Se 2000 E. McFadden Ave., S Santa Ana, CA, 92705 Phone: 714-558-4300
Fax: 714-558-4083
/occupational_safety.html)
 

Registration Form for Employers

Required to file a registration form within 15 days after paying more than $100.00 in wages to one
or more employees. No distinction is made between full-time and part-time or permanent and
temporary employees in meeting this requirement.
Employment Develo Department
Employment Tax Customer
P.O. Box 2068
Rancho Cordova, CA, 957 Phone: 888-745-3886
/payroll_taxes
/am_i_required_to_register For more information... (http://www.edd.ca.gov/Offi
 

Wage/Hour Laws

Businesses with employees must comply with laws establishing minimum standards for wages, hours and
working conditions.
Department of Indus Relations
Labor Commissioner's Offi 1515 Clay Street, STE 401
94612
Oakland, CA, 94612
Phone: 510-285-3502
Fax: 510-286-1366
/DLSE/dlse.html)
 
 

Workers' Compensation Information

Businesses with employees must maintain Workers' Compensation Insurance coverage on either a
self-insured basis, or provided through a commercial carrier, or the State Workers' Compensation
Insurance Fund.
Department of Indus Relations
Division of Workers' Comp 7575 Metropolitan Drive, S San Diego, CA, 92108 Phone: 619-767-2083
/DWC/dwc_home_page.ht
 

Proof of Residency Requirement

Employees hired after November 6, 1986 must provide proof of eligibility to work in the United
States.
 
U.S. Citizenship and
Immigration Service
San Diego Field Office 880 Front Street
San Diego, CA, 92101 Phone: 800-375-5283
/site/uscis
/menuitem.eb1d4c2a3e5b9
/?vgnextoid=84c267ee5cb vgnextchannel=84c267ee5

 

10. Prepare to open your doors

After handling all of the formal matters, you can get to the funnest part of owning a bar: stocking up on booze and serving it to customers. To help with your new business, don’t forget to create a website and pages on social media websites, advertise in local publications, and offer opening specials and happy hours. Be aware that as a purveyor of alcohol, your bar may be held responsible for the actions of your patrons if they are too drunk after they leave. Serve responsibly and good luck!


 

Weights and Measures

Businesses using scales, fuel pumps, electronic or manual price lookup scanner devices, or other
measuring devices must ensure proper calibration and pass inspections.
County of San Diego
Agricultural Commissioner Weights and Measures 9325 Hazard Way, Suite 10 San Diego, CA, 92123
Phone: 858-694-2778
Fax: 858-467-9278
website ()
 

Waste Discharge Requirements (WDR's)

Any facility or activity that discharges, or proposes to discharge, waste that may affect
groundwater quality or from which waste may be discharged in a diffused manner (e.g., erosion from
soil disturbance) must first obtain waste discharge requirements
Cal/EPA
Water Resources Control B 1001 I Street
Sacramento, CA, 95814
Phone: 916-341-5455
/water_issues/programs/la
/waste_discharge_requirem For more information... (http://www.waterboards.ca
/waterboards_map.shtml)
 
 

SELLING A BUSINESS

Experienced Legal Service for Buying or Selling a Business

Nick Yocca has extensive experience representing clients in a wide range of business law matters, including the buying and selling of businesses. He can review all aspects of your transaction to ensure that your interests are protected and that you are getting what you expect out of the purchase or sale.

Considerations in Business Purchases and Sales

From the initial stage of your business transaction to the final closing, there are many aspects of the transaction to consider in order to protect your financial interests. These include:

• Proper valuation of the business and its inventory

• Real estate and inventory liens

• Employment taxes

• Franchise and non-compete agreements in place

• Financial statements and other important documents

• Proper drafting of contracts and other documents needed for the transaction

• Structuring the sale as an asset purchase or stock purchase

• Leases

Teamwork

Nick Yocca would be able to be on your team, to work closely with all of our client's pre-existing CPA's, attorneys, business brokers, consultants and officers to help ensure that our clients' financial and legal concerns are met.

If you are thinking about buying or selling your business, you should not simply rely on a broker to facilitate the purchase. Only an experienced attorney provides independent advice concerning the transaction. Experienced attorneys like Nick Yocca can anticipate or resolve many issues that may arise in order to accomplish a deal closing and are "deal makers" without sacrificing their client's interests.