Thinking about starting a business in San Jose, California? This step-by-step guide walks you through the major decisions you should consider before opening a new business in San Jose.
An important decision is what kind of business you want to start. To help you decide on a business type, we encourage you to read How to Evaluate a Business Idea.
Remember that starting a business in San Jose has some implications. The business you want to start may already be well-represented in San Jose. Don't forget to review San Jose demographics to see if there's a market for what you want to sell.
San Jose has an active business community that includes small businesses,
mid-sized businesses and large businesses.
To give you a better feel for San Jose demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in San Jose.
As a new San Jose entrepreneur, you may also be interested in the table below. It shows how many businesses there are in San Jose for each business category. By looking at this chart, you can get
a general sense for how much competition there is in the business niche that
you are pursuing.
| Business Type |
# of
Businesses |
| Adhesive Manufacturing |
1 |
| Advertising Agencies |
30 |
| Aluminum Die-Casting Foundries |
1 |
| Aluminum Foundries (except Die-Casting) |
2 |
| Ambulance Services |
4 |
| Amusement and Theme Parks |
1 |
| Amusement Arcades |
1 |
| Appliance Repair and Maintenance |
17 |
| Apprenticeship Training |
6 |
| Architectural Services |
55 |
| Armored Car Services |
2 |
| Art Dealers |
9 |
| Audio and Video Equipment Manufacturing |
3 |
| Automobile Driving Schools |
12 |
| Automotive Exhaust System Repair |
7 |
| Automotive Glass Replacement Shops |
20 |
| Automotive Parts and Accessories Stores |
91 |
| Automotive Transmission Repair |
13 |
| Baked Goods Stores |
18 |
| Ball and Roller Bearing Manufacturing |
1 |
| Barber Shops |
15 |
| Beauty Salons |
233 |
| Beer and Ale Merchant Wholesalers |
1 |
| Beer, Wine, and Liquor Stores |
77 |
| Blind and Shade Manufacturing |
3 |
| Blood and Organ Banks |
2 |
| Boat Dealers |
2 |
| Book Publishers |
3 |
| Book Stores |
28 |
| Books Printing |
1 |
| Bottled Water Manufacturing |
1 |
| Bowling Centers |
3 |
| Breweries |
1 |
| Broadwoven Fabric Mills |
1 |
| Building Inspection Services |
12 |
| Burial Casket Manufacturing |
1 |
| Business and Secretarial Schools |
1 |
| Business Associations |
32 |
| Business to Business Electronic Markets |
11 |
| Cable and Other Program Distribution |
3 |
| Cafeterias |
26 |
| Camera and Photographic Supplies Stores |
10 |
| Canvas and Related Product Mills |
2 |
| Car Washes |
29 |
| Carpet and Upholstery Cleaning Services |
19 |
| Caterers |
39 |
| Cemeteries and Crematories |
4 |
| Charter Bus Industry |
2 |
| Child and Youth Services |
31 |
| Child Day Care Services |
229 |
| Children's and Infants' Clothing Stores |
11 |
| Civic and Social Organizations |
54 |
| Claims Adjusting |
13 |
| Clothing Accessories Stores |
9 |
| Coffee and Tea Manufacturing |
1 |
| Coin-Operated Laundries and Drycleaners |
36 |
| Collection Agencies |
11 |
| Commercial Bakeries |
12 |
| Commercial Flexographic Printing |
3 |
| Commercial Gravure Printing |
1 |
| Commercial Lithographic Printing |
26 |
| Commercial Photography |
4 |
| Commercial Screen Printing |
7 |
| Commodity Contracts Brokerage |
1 |
| Community Food Services |
6 |
| Computer and Software Stores |
49 |
| Computer Facilities Management Services |
18 |
| Computer Storage Device Manufacturing |
8 |
| Computer Systems Design Services |
258 |
| Computer Terminal Manufacturing |
1 |
| Computer Training |
14 |
| Concrete Block and Brick Manufacturing |
1 |
| Concrete Pipe Manufacturing |
1 |
| Confectionery and Nut Stores |
7 |
| Confectionery Merchant Wholesalers |
5 |
| Consumer Lending |
12 |
| Continuing Care Retirement Communities |
4 |
| Convenience Stores |
54 |
| Convention and Trade Show Organizers |
12 |
| Convention and Visitors Bureaus |
1 |
| Cookie and Cracker Manufacturing |
2 |
| Cosmetology and Barber Schools |
6 |
| Couriers |
23 |
| Court Reporting and Stenotype Services |
10 |
| Credit Bureaus |
5 |
| Credit Card Issuing |
1 |
| Credit Unions |
37 |
| Curtain and Drapery Mills |
6 |
| Custom Computer Programming Services |
361 |
| Cut Stock, Resawing Lumber, and Planing |
4 |
| Dance Companies |
2 |
| Deep Sea Passenger Transportation |
1 |
| Dental Laboratories |
39 |
| Diagnostic Imaging Centers |
16 |
| Diet and Weight Reducing Centers |
9 |
| Digital Printing |
3 |
| Direct Life Insurance Carriers |
10 |
| Direct Mail Advertising |
9 |
| Direct Title Insurance Carriers |
27 |
| Directory and Mailing List Publishers |
4 |
| Discount Department Stores |
12 |
| Display Advertising |
5 |
| Document Preparation Services |
19 |
| Drafting Services |
3 |
| Dried and Dehydrated Food Manufacturing |
1 |
| Drilling Oil and Gas Wells |
1 |
| Drinking Places (Alcoholic Beverages) |
78 |
| Drive-In Motion Picture Theaters |
3 |
| Dry Pasta Manufacturing |
1 |
| Drywall and Insulation Contractors |
66 |
| Educational Support Services |
19 |
| Electric Power Distribution |
1 |
| Electrical Contractors |
174 |
| Electronic Auctions |
2 |
| Electronic Capacitor Manufacturing |
1 |
| Electronic Computer Manufacturing |
11 |
| Electronic Connector Manufacturing |
5 |
| Electronic Resistor Manufacturing |
1 |
| Electronic Shopping |
27 |
| Elementary and Secondary Schools |
54 |
| Emergency and Other Relief Services |
8 |
| Employment Placement Agencies |
21 |
| Engineering Services |
238 |
| Environmental Consulting Services |
17 |
| Exam Preparation and Tutoring |
32 |
| Exterminating and Pest Control Services |
37 |
| Facilities Support Services |
15 |
| Family Clothing Stores |
51 |
| Family Planning Centers |
8 |
| Farm Management Services |
1 |
| Farm Supplies Merchant Wholesalers |
4 |
| Fiber Optic Cable Manufacturing |
2 |
| Fine Arts Schools |
33 |
| Finish Carpentry Contractors |
50 |
| Fish and Seafood Markets |
2 |
| Fish and Seafood Merchant Wholesalers |
8 |
| Fitness and Recreational Sports Centers |
83 |
| Flight Training |
5 |
| Floor Covering Stores |
26 |
| Flooring Contractors |
54 |
| Florists |
28 |
| Folding Paperboard Box Manufacturing |
1 |
| Food (Health) Supplement Stores |
27 |
| Food Product Machinery Manufacturing |
1 |
| Food Service Contractors |
81 |
| Footwear and Leather Goods Repair |
4 |
| Footwear Merchant Wholesalers |
3 |
| Formal Wear and Costume Rental |
5 |
| Fossil Fuel Electric Power Generation |
6 |
| Framing Contractors |
12 |
| Freight Transportation Arrangement |
19 |
| Frozen Specialty Food Manufacturing |
2 |
| Fruit and Vegetable Canning |
3 |
| Fruit and Vegetable Markets |
5 |
| Full-Service Restaurants |
591 |
| Funeral Homes and Funeral Services |
8 |
| Furniture Merchant Wholesalers |
18 |
| Furniture Stores |
76 |
| General Automotive Repair |
210 |
| General Freight Trucking, Local |
29 |
| General Medical and Surgical Hospitals |
8 |
| General Rental Centers |
4 |
| General Warehousing and Storage |
16 |
| Gift, Novelty, and Souvenir Stores |
47 |
| Glass and Glazing Contractors |
18 |
| Golf Courses and Country Clubs |
11 |
| Grantmaking Foundations |
15 |
| Graphic Design Services |
49 |
| Hand and Edge Tool Manufacturing |
2 |
| Hardware Merchant Wholesalers |
17 |
| Hardware Stores |
19 |
| Hazardous Waste Collection |
6 |
| Historical Sites |
1 |
| HMO Medical Centers |
2 |
| Hobby, Toy, and Game Stores |
15 |
| Home Centers |
7 |
| Home Furnishing Merchant Wholesalers |
11 |
| Home Health Care Services |
47 |
| Home Health Equipment Rental |
1 |
| Homes for the Elderly |
79 |
| Household Appliance Stores |
27 |
| Human Rights Organizations |
6 |
| Industrial Building Construction |
6 |
| Industrial Design Services |
10 |
| Industrial Gas Manufacturing |
2 |
| Industrial Launderers |
7 |
| Industrial Mold Manufacturing |
1 |
| Industrial Pattern Manufacturing |
1 |
| Inland Water Passenger Transportation |
1 |
| Institutional Furniture Manufacturing |
1 |
| Insurance Agencies and Brokerages |
313 |
| Interior Design Services |
22 |
| International Trade Financing |
1 |
| Internet Publishing and Broadcasting |
15 |
| Internet Service Providers |
33 |
| Interurban and Rural Bus Transportation |
3 |
| Investigation Services |
23 |
| Investment Advice |
61 |
| Iron and Steel Mills |
1 |
| Iron Foundries |
1 |
| Irradiation Apparatus Manufacturing |
1 |
| Janitorial Services |
208 |
| Jewelry (except Costume) Manufacturing |
3 |
| Jewelry Stores |
81 |
| Junior Colleges |
2 |
| Kidney Dialysis Centers |
5 |
| Land Subdivision |
20 |
| Landscape Architectural Services |
18 |
| Landscaping Services |
225 |
| Language Schools |
11 |
| Lessors of Other Real Estate Property |
43 |
| Libraries and Archives |
2 |
| Limited-Service Restaurants |
610 |
| Limousine Service |
11 |
| Linen Supply |
3 |
| Local Messengers and Local Delivery |
10 |
| Locksmiths |
10 |
| Luggage and Leather Goods Stores |
5 |
| Machine Shops |
109 |
| Mail-Order Houses |
9 |
| Manufactured (Mobile) Home Dealers |
2 |
| Marketing Consulting Services |
71 |
| Masonry Contractors |
36 |
| Materials Recovery Facilities |
3 |
| Meat Markets |
12 |
| Meat Processed from Carcasses |
3 |
| Media Buying Agencies |
1 |
| Media Representatives |
8 |
| Medical Laboratories |
8 |
| Medicinal and Botanical Manufacturing |
1 |
| Men's Clothing Stores |
21 |
| Metal Heat Treating |
2 |
| Metal Stamping |
6 |
| Metal Window and Door Manufacturing |
2 |
| Mineral Wool Manufacturing |
1 |
| Miscellaneous Intermediation |
14 |
| Mobile Food Services |
15 |
| Mortgage and Nonmortgage Loan Brokers |
103 |
| Motion Picture and Video Production |
14 |
| Motor Vehicle Towing |
25 |
| Motorcycle Dealers |
11 |
| Museums |
9 |
| Music Publishers |
1 |
| Musical Groups and Artists |
12 |
| Musical Instrument and Supplies Stores |
15 |
| Nail Salons |
82 |
| New Car Dealers |
47 |
| New Housing Operative Builders |
9 |
| News Dealers and Newsstands |
1 |
| News Syndicates |
4 |
| Newspaper Publishers |
14 |
| Nonresidential Property Managers |
59 |
| Nursing Care Facilities |
37 |
| Office Administrative Services |
56 |
| Office Equipment Merchant Wholesalers |
20 |
| Office Supplies and Stationery Stores |
25 |
| Offices of Certified Public Accountants |
159 |
| Offices of Chiropractors |
111 |
| Offices of Dentists |
629 |
| Offices of Lawyers |
601 |
| Offices of Optometrists |
64 |
| Offices of Other Holding Companies |
8 |
| Offices of Podiatrists |
16 |
| Offices of Real Estate Appraisers |
38 |
| One-Hour Photofinishing |
3 |
| Ophthalmic Goods Manufacturing |
1 |
| Ophthalmic Goods Merchant Wholesalers |
7 |
| Optical Goods Stores |
18 |
| Outdoor Power Equipment Stores |
3 |
| Packaging and Labeling Services |
4 |
| Packaging Machinery Manufacturing |
2 |
| Packing and Crating |
3 |
| Paging |
1 |
| Paint and Coating Manufacturing |
7 |
| Paint and Wallpaper Stores |
15 |
| Painting and Wall Covering Contractors |
144 |
| Parking Lots and Garages |
54 |
| Passenger Car Rental |
32 |
| Payroll Services |
9 |
| Periodical Publishers |
18 |
| Perishable Prepared Food Manufacturing |
4 |
| Pet and Pet Supplies Stores |
32 |
| Pet Care (except Veterinary) Services |
18 |
| Petroleum Bulk Stations and Terminals |
9 |
| Pharmacies and Drug Stores |
79 |
| Photography Studios, Portrait |
26 |
| Pipeline Transportation of Crude Oil |
1 |
| Plastics Plumbing Fixture Manufacturing |
2 |
| Plate Work Manufacturing |
3 |
| Political Organizations |
8 |
| Polystyrene Foam Product Manufacturing |
2 |
| Portfolio Management |
34 |
| Poultry Processing |
1 |
| Power-Driven Handtool Manufacturing |
1 |
| Precision Turned Product Manufacturing |
10 |
| Prepress Services |
2 |
| Private Mail Centers |
15 |
| Professional Employer Organizations |
8 |
| Professional Organizations |
12 |
| Public Relations Agencies |
20 |
| Quick Printing |
22 |
| Radio Networks |
3 |
| Radio Stations |
20 |
| Ready-Mix Concrete Manufacturing |
5 |
| Real Estate Credit |
95 |
| Real Estate Investment Trusts |
26 |
| Recreational Goods Rental |
3 |
| Recreational Vehicle Dealers |
3 |
| Refrigerated Warehousing and Storage |
1 |
| Remediation Services |
4 |
| Rendering and Meat Byproduct Processing |
1 |
| Repossession Services |
2 |
| Residential Property Managers |
109 |
| Residential Remodelers |
242 |
| Retail Bakeries |
34 |
| Reupholstery and Furniture Repair |
13 |
| Roofing Contractors |
70 |
| Rooming and Boarding Houses |
4 |
| Sales Financing |
11 |
| Satellite Telecommunications |
1 |
| Savings Institutions |
27 |
| Saw Blade and Handsaw Manufacturing |
1 |
| Scheduled Freight Air Transportation |
2 |
| Scheduled Passenger Air Transportation |
11 |
| School and Employee Bus Transportation |
3 |
| Securities Brokerage |
55 |
| Security Guards and Patrol Services |
41 |
| Semiconductor Machinery Manufacturing |
17 |
| Septic Tank and Related Services |
3 |
| Sheet Metal Work Manufacturing |
26 |
| Shoe Stores |
61 |
| Siding Contractors |
6 |
| Sign Manufacturing |
8 |
| Site Preparation Contractors |
36 |
| Snack and Nonalcoholic Beverage Bars |
175 |
| Soap and Other Detergent Manufacturing |
1 |
| Software Publishers |
81 |
| Software Reproducing |
4 |
| Solid Waste Collection |
8 |
| Sound Recording Studios |
1 |
| Special Needs Transportation |
2 |
| Specialty Canning |
1 |
| Sporting Goods Stores |
41 |
| Sports and Recreation Instruction |
25 |
| Sports Teams and Clubs |
2 |
| Spring (Heavy Gauge) Manufacturing |
1 |
| Steel Foundries (except Investment) |
1 |
| Steel Wire Drawing |
1 |
| Surface Active Agent Manufacturing |
1 |
| Synthetic Rubber Manufacturing |
1 |
| Tax Preparation Services |
97 |
| Taxi Service |
2 |
| Telecommunications Resellers |
18 |
| Telemarketing Bureaus |
5 |
| Telephone Answering Services |
6 |
| Telephone Apparatus Manufacturing |
19 |
| Television Broadcasting |
6 |
| Temporary Help Services |
101 |
| Temporary Shelters |
11 |
| Testing Laboratories |
24 |
| Theater Companies and Dinner Theaters |
11 |
| Tile and Terrazzo Contractors |
53 |
| Tire and Tube Merchant Wholesalers |
3 |
| Tire Dealers |
44 |
| Title Abstract and Settlement Offices |
13 |
| Tobacco Stores |
8 |
| Toilet Preparation Manufacturing |
1 |
| Tour Operators |
5 |
| Tradebinding and Related Work |
1 |
| Translation and Interpretation Services |
7 |
| Travel Agencies |
72 |
| Travel Trailer and Camper Manufacturing |
2 |
| Used Car Dealers |
32 |
| Used Household and Office Goods Moving |
32 |
| Used Merchandise Stores |
30 |
| Vending Machine Operators |
20 |
| Veterinary Services |
34 |
| Video Tape and Disc Rental |
45 |
| Vocational Rehabilitation Services |
23 |
| Voluntary Health Organizations |
11 |
| Warehouse Clubs and Supercenters |
2 |
| Water Supply and Irrigation Systems |
7 |
| Web Search Portals |
4 |
| Wholesale Trade Agents and Brokers |
133 |
| Window Treatment Stores |
9 |
| Wineries |
3 |
| Wired Telecommunications Carriers |
88 |
| Women's Clothing Stores |
45 |
| Wood Container and Pallet Manufacturing |
2 |
| Wood Office Furniture Manufacturing |
1 |
| Wood Window and Door Manufacturing |
2 |
A critical step is ensuring that you form your business as a legal structure. Doing so will shield you from personal liability for business debts and obligations.
When forming a company, you will choose from many company types, such as a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.
Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in California, it doesn't mean you are required to incorporate in California. As it turns out, you are allowed to incorporate in any state you would like to. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.
There's a lot to know about forming a company. To learn the fundamentals of company formation, browse articles on our site, such as Offshore Company Formation. You may also want to seek the advice of an attorney. On a final note, since you will be starting a business in San Jose, California, our web page covering Incorporating in California may be a useful resource if you decide to incorporate in California.
Obtaining startup financing for your San Jose business is a difficult chore. Bootstrapping, which means growing the business without outside funding, is the best alternative, but that's not a viable option for many startup plans.
To learn about raising money, we recommend you read the fundraising articles on our site, such as Business Cash Advances.
Whether your goal is to attract San Jose customers or you plan on selling elsewhere, you need a great marketing plan.
We have some great resources on this site for entrepreneurs who are working on marketing plans. Six Tips for Getting Customer Testimonials is an article that will generate a few thoughts on your marketing plan. That's just a taste of the many useful articles we have on Marketing a Small Business.
Good business owners know that they need to continually improve.
As an entrepreneur who lives in San Jose, California, you should get information on some of the many programs available at nearby California universities, colleges and community colleges. Another way to keep up on your entrepreneurial education is to investigate networking organizations for San Jose entrepreneurs.
As an entrepreneur in San Jose, you won't be working for the boss anymore. You are the boss.
Owning your own business will be a daunting task, but you can do it.
We are here to help San Jose businesses to be successful. We want to be there for you to answer your business questions, whether you are a new San Joseentrepreneur who is just getting started or you are already up and running with your new venture.
Here are more links that we believe will help you be successful in starting a business in San Jose.
