New Business Checklist

Interested in opening a new business on Mercer Island? Before you sign your lease and flip that sign to OPEN, review our New Business Checklist to prepare for success.

 

This guide is meant as a starting point only (not an exhaustive list of individual requirements). We recommend you contact City staff to share more about your business idea and learn about the best next steps for opening your business on Mercer Island.

 

1. Create your business plan.

A successful and sustainable business starts with a strong business plan. Your business plan outlines your products/services, funding model, marketing & sales plans, organizational structure, and more. Here are a few free or low-cost resources to help you get started with writing your business plan: 

  • Washington Small Business Development Center (SBDC): The SBDC offers advising, training, and other services to help Washington businesses open and grow. Access free resources on the SBDC website, or schedule free one-on-one advising with Shawn Palmer, East King County's SBDC Business Advisor, by phone at 425.885.4014, option #3, or e-mail at ShawnP@OneEastside.org.
  • SCORE Greater Seattle: SCORE connects you with a Mentor who provides free one-on-one business counseling. SCORE Mentors are experienced business owners and executives (many of whom live or own businesses on Mercer Island!) who will connect with you by phone, by e-mail, or in-person. Find a SCORE Mentor and other free resources here.
  • Startup425: Startup425 is a collaborative effort to boost entrepreneurship across the Eastside and help future business owners bring their ideas to reality. Programs such as Startup425 Foundations and others deliver free and low-cost guidance on business plan development, financing, marketing, cybersecurity, and more. Start exploring Startup425 here.

2. Find a location and confirm the zoning requirements.

Before purchasing property or signing a lease, make sure your business is allowed in that specific zone. Find zoning for specific sites on the Mercer Island Zoning Map, and then read up on the specific code requirements for each zone outlined in the Mercer Island City Code (MICC) :

3. Secure your financing.

Various state and federal funding options are available for your business. We linked a few funding sources below. SBDC, SCORE, and Startup425 are also helpful resources for learning more about financing options.

4. Apply for permits and confirm fees.

A range of permits and fees may be required before you can open your business, depending on the type of business, the improvements you want to make to your location, and other factors. Below we explain a few common permits, fees, and other reviews that may be required to open your business. Every business and situation is unique, so we recommend that you contact City staff to confirm your permitting needs.

  • Tenant Improvements: Tenant Improvements (TIs) are changes made to the interior of a commercial building to meet the needs of a new or existing tenant; examples include improvements related to floor and wall coverings, ceilings, partitions, air conditioning, fire protection, and security. A TI is not a change of use of the building or tenant space, but TIs often occur when a new tenant plans to move into a space. Learn more here.
  • Design Review: Making exterior modifications like adding rooftop mechanical equipment or contemplating major construction at your property/place of business? Your plans may trigger a Design Review by either City staff or the Mercer Island Design Commission. Contact a City Planner to share more about your plans and learn whether you'll need a Design Review by e-mailing landusereview@mercergov.org. 
  • Sign Code Requirements: Changing your existing signage or adding new exterior signage can also trigger the need for a Design Review. Before creating new signs, review the sign code (Town Center | Other Commerical Areas) and contact a City Planner to learn more about what you should consider. 
  • Impact Fees: The City Council adopted transportation impact fees in 2016 to address impacts of new development on transportation facilities such as public streets and roads. Some business categories are required to pay impact fees before a building permit can be issued. Learn more about impact fees here, and contact a City Planner to determine whether or not you will be required to pay impact fees.
  • Transportation Concurrency Certificate: You may be required to obtain transportation concurrency certificate before you can obtain other permits to open your business. Like with impact fees, transportation concurrency review helps alleviate the impacts of new development on transportation infrastructure. Obtaining a certificate may require a transportation impact analysis (TIA) that will study whether your business will generate new trips during peak hours. Contact a City Planner to determine whether or not you will be required to obtain a transportation concurrency certificate.        

5. Register your business and learn about B&O tax.

Businesses wishing to operate on Mercer Island must add the City as an endorsement to their Washington State Business License. Obtain your State license and add Mercer Island through the WA State Department of Revenue. The City also collects business and operation (B&O) tax, which is a tax on gross revenues earned each tax year. Learn more about filing your B&O tax returns on the City's Business & Occupation Tax Information page. 

6. Schedule your fire inspection and secure your fire permits.

The Fire Marshal's Office assists the community and businesses with fire protection needs, assessments, and pre-planning. We recommend involving the Fire Marshal early as you plan to open a new business, as fire protection systems are often the backbone of buildings and can require different architectural design needs. Learn more about the Fire Marshal here.

7. Connect with the community.

Mercer Island is a close-knit community, and new businesses will benefit greatly from getting to know the Island early. Here are a few resources to help you learn your way around, get to know other businesses, and become a part of the Island community:

8. Stay updated on City happenings, resources, and more.

The City maintains an e-mail list of local businesses and periodically distributes information related to economic development activiteis and issues. To add your contact information to the list, e-mail Deb Estrada at deb.estrada@mercerisland.gov. Local businesses may also be interested in subscribing to the MI Weekly, the City's weekly e-newsletter about City events, projects, and more.  

  • Printer-friendly version