Starting a Business in Los Gatos: A Guide
Los Gatos offers entrepreneurs a supportive business environment where small town charm meets Silicon Valley innovation. The town’s commercial districts each present different personalities, while its affluent customer base and ample amenities make it a supportive location for new ventures.
This guide covers both the strategic considerations for choosing a location and some of the specific legal requirements for establishing your business, such as publishing a fictitious business name statement, which individuals and partnerships need to establish a legal identity, secure rights to operate under their chosen brand and open a bank account.
Los Gatos has a rich business history that evolved from its early agricultural roots to becoming part of Silicon Valley’s tech ecosystem. Los Gatos played a role in the growth of the region’s high tech sector and maintains a legacy of innovation. Hardware and software startups flourished here—even before Netflix.
The town’s proximity to Stanford and venture capital made it a stealth hub for R&D. Steve Jobs rented a house in Los Gatos that became something of an unofficial offsite lab for the early development of the Macintosh computer, and Steve Wozniak has lived in Los Gatos for decades.
The Pet Rock was invented here, and the Maccabee Gopher Trap was manufactured in Los Gatos for more than 100 years.
Los Gatos’ Early Economy
Originally a logging and town in the mid-1800s, established around a failed Creekside flour mill, Los Gatos later became known for its orchards and vineyards. The arrival of the South Pacific Coast Railroad in 1878 transformed it into a leisure destination, with visitors drawn to its natural springs and mountain scenery.
By the early 20th century, Los Gatos was a thriving agricultural hub, producing apricots, prunes and wine grapes. Sacramental wines were produced at the Sacred Heart Novitiate from the 1880s to 1986, including during Prohibition. The Testarossa Winery began producing wines at the College Ave. facility in the 1990s.
In Silicon Valley’s developmental days, notable companies based in Los Gatos included Xilinx, Imagic and Eagle Computer. Roku was headquartered in Los Gatos until 2019. Today Netflix is headquartered here.
Commercial Districts
North Santa Cruz Avenue forms the heart of Los Gatos’ downtown, featuring a mix of upscale retail, dining establishments and professional services. The restored Los Gatos Theatre is a centerpiece the district. Many of the avenue’s brick-faced buildings date back to the late 1800s. Survivors of two major earthquakes, these gems forge an ambiance that provide a warm welcome for residents and visitors.
Main Street preserves even more of the town’s historic character, with numerous original structures housing boutique retail and specialty restaurants. The Los Gatos Soda Works exemplifies the area’s architectural heritage while accommodating contemporary businesses.
Los Gatos Boulevard serves as the town’s primary commercial thoroughfare, home to major grocery stores, auto dealerships, fitness establishments and service businesses. Its high traffic and ample parking make it ideal for businesses requiring easy vehicular access.
Legal Requirements for Business Formation
Businesses operating in Los Gatos must complete several key steps:
1. Fictitious Business Name (FBN) Filing: A fictitious business name filing is required for any business not operating under a business entity or individual owner’s legal name. File with the Santa Clara County Clerk-Recorder’s Office.
2. FBN Publication: After registering the fictitious business name with the county clerk, California law mandates publishing the FBN statement in a newspaper of general circulation for four consecutive weeks. The Los Gatan is Los Gatos’ leading newspaper and has been adjudicated as a legal newspaper. After publication in the Los Gatan, submit proof to the county clerk complete the registration.
3. Business License: Obtain through the Town of Los Gatos online portal. All businesses must renew this license annually.
4. Apply for an Employer Identification Number (EIN), a federal tax ID issued by the IRS that you’ll need to hire employees, open a business bank account or file taxes. It’s free and easy to apply online at irs.gov/EIN.
5. Additional Permits: Depending on your business type, you may need: Health Department permits (food service); Signage approval from Planning Department; State-level professional licensing; Alcohol sales permits (for restaurants/bars).
Local Support Resources
The Los Gatos Chamber of Commerce provides valuable services for new businesses, including:
– Networking opportunities through regular mixers and events
– Business development workshops
– Ribbon-cutting ceremonies for new openings
– Promotion through their business directory and marketing channels
The Silicon Valley Small Business Development Center offers free consulting on business planning, financing and marketing strategies. Their workshops cover essential topics for new entrepreneurs.
Final Steps Before Launch
Complete these tasks before opening your doors:
- Secure all required permits and licenses
- Publish your fictitious business name statement in a newspaper of general circulation
- Establish business banking relationships
- Set up accounting and tax systems
- Obtain necessary insurance coverage
- Develop your marketing and customer acquisition strategy
By carefully selecting your location and completing all legal requirements, your Los Gatos business will be positioned for success. The town’s combination of historic character, well educated residents and strong local support networks create a welcoming environment for new ventures.
