Starting Your Business in ELKHART COUNTY

For more information call 866.508.7232

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This information has been compiled by the North Central ISBDC.

Resources for Starting a Business in Elkhart County

GENERAL REQUIREMENTS Indiana does not have any one single, comprehensive business license. However, many businesses operating in Indiana may be subject to regulatory requirements that may involve several state agencies. Businesses that are starting, expanding, hiring employees for the first time, changing ownership or organizational structure, or moving into Indiana will need to consider the areas listed below.

I. BUSINESS STRUCTURE The first decision you must make is what type of business organizational structure will best meet your goals. The organizational structure of a business entity will determine what must be done to officially “form” the entity, how taxes are paid, and many other details that will affect its day-to-day operation.

There are financial and legal advantages and disadvantages to each type of business organization. Anyone unsure of which structure will be best, should go to www.in.gov/sos/business/2428.htm. As this decision should not be taken lightly, it is strongly suggested that an attorney be consulted for additional guidance.

A. CHOOSE A NAME Before selecting a business name, make sure no one else is using it.

Search the Indiana Secretary of State website at http://www.state.in.us/sos/business/corps/searches.html

Search Internet domain names at http://www.whois.net/

If applicable, search the United States Patent and Trademark office at http://www.uspto.gov

Name Availability Line at 317.232.6576

B. CHOOSE AND REGISTER YOUR ENTITY TYPE

1. FORMAL BUSINESS ENTITIES The following formal business entities require the filing of organizational documents with the Corporations Division of the Secretary of State: Corporation, S-Corporation, Limited Liability Company, Nonprofit Corporation, Limited Partnership, and Limited Liability Partnership.

All filings and reports for formal business entities should be sent to:

Indiana Secretary of State Business Service Division

302 West Washington Street, Room E018 Indianapolis, IN 46204 Phone: 317.232.6576

http://www.in.gov/sos/business

2. LESS FORMAL ENTITIES Sole Proprietorships and General Partnerships DO NOT require filing with the Indiana Secretary of State to come into existence. If the business name does not contain the owner’s name(s), file a Doing Business As, also known as an Assumed Business Name, form with your County Recorder’s office to secure your business name on a county level. Example: John Doe operates a business as a Sole Proprietor; d.b.a. John's Plumbing Service. Registration of a business does not protect the name from being used by another business. In Elkhart County contact:

Elkhart County Recorder 117 North 2

nd Street, Room 205

Goshen, IN 46526 Phone: 574.535.6756

http://www.elkhartcountyindiana.com/departments/Recorder/index.htm

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This information has been compiled by the North Central ISBDC.

II. ESTABLISHING TAX ACCOUNTS A. FEDERAL TAX INFORMATION

Any business with employees must have an Employer Identification Number (EIN) which identifies the tax accounts of employers, corporations, partnerships, and limited liability companies. Under federal guidelines, you also need an EIN if you have a qualified retirement plan, operate your business as a corporation or partnership, or file employment taxes or excise taxes. To obtain an EIN, call the Internal Revenue Service (IRS) for Form SS-4. Business owners may also be required to file self employment taxes quarterly.

Contact the IRS for publications on self-employment taxes. If the business does not have employees and does not expect to have any, the IRS may not allow the business to obtain an EIN. In such a case, the business owner’s social security number is used as the Federal Tax Identification Number.

Internal Revenue Service (IRS) Phone: 800.829.1040 (general information) Phone: 800.829.3676 (forms & publications) Phone: 800.829.4933 (EIN assignment) http://www.irs.ustreas.gov/

Local IRS office 100 East Wayne Street, Suite 200 South Bend, IN 46601 Phone: 574.236.8149

B. STATE TAX INFORMATION Inquiries for the following state tax requirements should be directed to:

Indiana Department of Revenue 100 N. Senate Ave., N105 (MS112) Indianapolis, IN 46204 Sales Tax—Phone: 317.233.4015 http://www.in.gov/dor

Local Indiana Department of Revenue office 1025 Widener Lane, Suite B (across from Erskine Village next to McDonald’s on Miami St.) South Bend, IN 46614 Phone: 574.291.8270

1. REGISTRATION FOR SALES, USE, AND INCOME TAXES A single application Form BT-1 is used to register with the Indiana Department of Revenue for sales tax, withholding tax, food & beverage tax, county innkeeper tax, motor vehicle rental excise tax, and prepaid sales tax on gasoline. A separate application is required for each business location. There is a $25.00 non refundable application fee for a Retail Merchants Certificate.

a. Sales Tax – Retail Merchants Certificate Any individual or business entity engaged in the selling or transferring of tangible personal property is considered a retail merchant and is required to be registered as such (by filing Form BT-1). Registering as a retail merchant accomplishes what people commonly refer to as “getting a tax ID number” or “getting a tax-exempt number.” The information regarding sales and use taxes should be read carefully, keeping in mind that taxes cannot be avoided on items which will not be resold.

b. Sales Tax – Exemption Certificate Any individual or business entity registered as a retail merchant may complete Form ST-105, General Sales Tax Exemption Certificate, and purchase, tax exempt, any items being obtained for resale or items being incorporated into a final product (manufacturing) for resale. Registered retail merchants must assess Indiana sales tax on the sale of tangible personal property unless the buyer presents a valid exemption certificate to the seller. The exemption certificate must be legible, signed, and include the tax-exempt number of the buyer.

c. Indiana Use Tax Use tax is due on tangible personal property brought into Indiana for use, storage or consumption that was acquired in a retail transaction and sales tax was not paid at the point of purchase. Exceptions for this tax may be found in the Indiana Code (IC 6-2.5-5 and IC 6-2.5-3). The Indiana use tax rate is 7% as of April 1, 2008. Registered retail merchants must report and pay the use tax due on Form ST-103, Indiana Sales Tax return. Business entities that are not retail merchants must report and pay the use tax due on the income tax return of the entity or on a ST-115 Consumer’s Use Tax Return. Types of purchases that might become liable for use tax:

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This information has been compiled by the North Central ISBDC.

Catalog purchases by phone or mail from out-of-state vendors

Internet purchases from out-of-state vendors

Items withdrawn from inventory for personal use or to give away

d. Withholding Tax Employers are considered to be withholding agents if they:

make payments of salaries, wages, tips, fees, bonuses, and commissions that are subject to Indiana state and/or county taxes, and

are required by the Internal Revenue Code to withhold federal income tax on those types of payments.

Withholding agents are required to register with the Indiana Department of Revenue (by filing Form BT-1: no fee required) and to withhold state income tax and county income tax, if applicable, from the income of all employees. Independent contractors are required to file quarterly estimated income tax payments. For more information, contact the Indiana Department of Revenue, Withholding. Phone: 317.233.4016.

e. Corporate Income Tax Except as otherwise provided, a corporation doing business in Indiana, other than a corporation defined as a taxpayer under IC 6-5.5-1-17, is subject to gross income tax, adjusted gross income tax, and supplemental net income tax. For more information, contact the Indiana Department of Revenue, Corporate Tax Section. Phone: 317.233.4015.

f. Individual Income Tax Individual taxes are paid by an individual operating an unincorporated business (an independent contractor, sole proprietor, or general partner). Estimated tax payments must be made by an individual who:

receives income from which Indiana adjusted gross income tax, county adjusted gross income tax, county income tax, or county economic income tax is not properly withheld; and has an annual income tax liability that is $1,000 as of January 1, 2008.

For more information regarding individual income tax, contact Indiana Department of Revenue, Individual Income. Phone: 317.232.2240.

2. PROPERTY TAX Property taxes in Indiana are imposed at the local level on real property (land and buildings) and certain types of personal property. The assessment date is March 1. Property taxes are based on a “rate per hundred” dollars of assessed value. For more information, contact:

Department of Local Government Finance, Assessment Division 100 N. Senate Avenue, N1058

Indianapolis, IN 46204 Phone: 317.232.3773 http://www.in.gov/dlgf

III. EMPLOYER RESPONSIBILITIES Employment may be defined differently by laws regarding taxes, worker compensation, labor, and unemployment. Often, a worker’s status as an employee is dependent on how much work is performed and how wages are paid. Some laws use tests involving the amount of control the payer has over how, where, and when the work is done. The IRS has Publication 15A, which outlines the criteria it uses to make the determination of whether a worker is an employee or an independent contractor.

The term “independent contractor” is used to refer to a business, a business owner with employees, or a self-employed business owner with no employees. This should not confuse the issue of employer responsibilities. If you have employees, you are responsible for them. If you are unsure of whether someone who performs services for you is an employee or independent contractor, consult each agency listed in this section to be sure of which definitions apply for which purposes. See Appendix A for a more detailed description of an independent contractor.

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This information has been compiled by the North Central ISBDC.

A. UNEMPLOYMENT INSURANCE Unemployment insurance is a partial, temporary replacement of income to employees who lose their jobs through no fault of their own. As an employer, the business will generally qualify for coverage if it:

has $1500 or more total gross payroll in a calendar quarter

employs one or more worker(s) for 20 weeks or more during a calendar year

Establishing State Employment Insurance Account: Employers must pay both FUTA (Federal Unemployment Tax act) and SUTA (State Unemployment Tax Act) taxes. FUTA taxes are paid to the Internal Revenue Service. SUTA taxes are paid by establishing a state employment insurance account (file A Report to Determine Status Form 2937), and then filing quarterly payments (submit Form UC-1, Quarterly Contribution Report and Form UC-5A, Quarterly Payroll Report) to the Indiana Department of Workforce Development. For more information on state unemployment coverage you may obtain an Employer’s Desk Guide by contacting:

Department of Workforce Development (DWD) 10 North Senate Avenue

Indianapolis, IN 46204-2277 Phone: 800.437.9136 or 317.232.7436

http://www.in.gov/dwd

B. WORKER’S COMPENSATION All Indiana employers must obtain worker’s compensation insurance from a private insurance carrier. If an injury to an employee occurs and results in more than one day away from work, the employer must electronically file an Indiana Worker’s Compensation First Report of Employee Injury, Illness.

Certification of Independent Contractor Status and Worker’s Compensation Exemption: Independent contractors in the construction and building trade are required to apply to the Indiana Department of Revenue for certification of independent contractor status. Clearance must first be received from the Department of Revenue before the Worker’s Compensation Board may process an application for exemption. For more information, contact:

C. LABOR LAWS Information regarding any Indiana labor laws can be obtained by contacting:

Indiana Department of Labor 402 West Washington Street, Room W195

Indianapolis, IN 46204 Phone: 317.232.2655 http://www.in.gov/dol

1. INDIANA OCCUPATIONAL SAFETY AND HEALTH ACT (IOSHA) The Indiana Department of Labor, IOSHA Division, is the sole compliance agency for occupational safety and health standards in the State of Indiana. The ultimate goal of IOSHA is the elimination of occupational injury, disease, and illness among Indiana workers. There are general industry standards that apply to any employer. Some specific industries have their own standards as well. Additionally, employees may not suffer dismissal or discrimination for making known a concern about workplace health or safety. For more information, contact IOSHA at 317.232.2693.

2. DIVISION OF INSAFE INSafe’s primary function is to aid businesses with voluntary compliance with IOSHA standards and to develop comprehensive safety and health programs through safety education and training. INSafe offers technical assistance, recommendations for reducing or eliminating existing hazards and assessment of employer’s safety and health programs. For more information, call 317.232.2655.

Indiana Department of Revenue Titles & Licensing 100 N. Senate Avenue, N105 (MS112) Indianapolis, IN 46204 Phone: 317.232.5977 http://www.in.gov/dor/

Worker's Compensation Board 402 West Washington Street, Room W196 Indianapolis, IN 46204 Phone: 800.824.2667 http://www.in.gov/wcb

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This information has been compiled by the North Central ISBDC.

3. CHILD LABOR LAWS The Indiana Department of Labor’s Bureau of Child Labor enforces the Indiana child labor laws, which apply to minors, ages 14 through 17 years. Generally, any minor between ages 14 and 17 years must obtain an Employment Certificate before beginning employment. Employment Certificates are issued by the School Corporation the minor attends. For more information regarding the employment of a minor, call 317.232.2675.

4. AGE DISCRIMINATION The Indiana Department of Labor’s Employment Standards Division administers Indiana’s Age Discrimination Act and investigates charges of age discrimination at state-covered businesses (generally, those employing fewer than 20 employees). For more information, call 317.232.2655. Charges of age discrimination against employers of more than 20 must be filed with the Equal Employment Opportunity Commission (EEOC) at 800.669.4000.

5. MINIMUM WAGE The Employment Standards Division also administers the Indiana Minimum Wage, which applies to employers not subject to the Federal Fair Labor Standards Act. Indiana’s minimum wage is $7.25 per hour. For more information regarding state and federal minimum wage laws, call 317.232.2655.

6. WAGE PAYMENT Employees who are not paid all wages earned on the regular payday for the period in which they are earned may file a wage claim with the Employment Standards Division. For additional information call 317.232.2655.

D. NEW HIRE REPORTING Effective October 1, 1997, under Indiana State Statute IC22.4.1.4-2. and the Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) all public, private, non-profit, and government employers are required to report all new and rehired employees within 20 days of hire to the Indiana New Hire Reporting Center. Failure to report a new employee could result in a fine of $500. Please see the following website: http://www.in-newhire.com or for questions call 866.879.0198 or 317.612.3036.

E. POSTING REQUIREMENTS Many state and federal employment laws have corresponding posting requirements. Please keep in mind that most of the posters have size requirements included in state or federal law, and many of the “combined posters” sold by private companies do not meet these size requirements. At least one copy of each poster is free to any employer, and the contact information is listed below with each one.

1. MINIMUM WAGE

Federal: Your Rights under the Fair Labor Standards Act and Employee Polygraph Protection Act posters. Contact the U.S. Department of Labor, Wage and Hour Division at 866.487.2365. In South Bend, contact 574.236.8331.

State: Indiana Minimum Wage Law poster needed by anyone not covered by Federal Minimum Wage and has 2 or more employees during any work week. Contact the Indiana Department of Labor at 317.232.2655.

2. EQUAL EMPLOYMENT OPPORTUNITY

Federal: The Law poster. Contact Equal Employment Opportunity Commission at 800.669.4000 or 317.226.7212.

State: Equal Opportunity is the Law poster. Contact Indiana Civil Rights Commission at 800.628.2909 or 317.232.2600.

3. OCCUPATIONAL SAFETY AND HEALTH

Federal: No poster is needed in Indiana.

State: Safety and Health Protection on the Job poster is needed by anyone with employees in Indiana. Contact Indiana Department of Labor, IOSHA Compliance Division at 317.232.2694.

4. CHILD LABOR

Federal: Federal requirements are covered on the Fair Labor Standards Act poster listed under Minimum Wage.

State: The Notice of Teen Worker Hour Restrictions poster is required to be posted by all Indiana employers who employ teens ages 14 through 17 years of age. Contact the Indiana Department of Labor, Bureau of Child Labor at 317.232.2675.

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This information has been compiled by the North Central ISBDC.

5. UNEMPLOYMENT COMPENSATION

State: Indiana Employment and Training Services Act poster. Contact the Indiana Department of Workforce Development at 800.437.9136 or 317.232.6715.

6. WORKER’S COMPENSATION

State: Worker’s Compensation Notice is needed by almost anyone with employees. Contact the Worker’s Compensation Board at 800.824.2667 or 317.232.3808.

7. USERRA (UNIFORMED SERVICES EMPLOYMENT AND RE-EMPLOYMENT RIGHTS ACT) Federal law protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service. Also prohibits employers from discriminating against past and present members of the uniformed services, and applicants to the uniformed services. Contact the U.S. Department of Labor at 866.487.2365.

IV. LICENSES & PERMITS Every business may need one or more federal, state, or local licenses or permits to operate. Licenses can range from a basic operating license to very specific permits.

Regulations vary by industry, state and locality, so it's very important to understand the licensing rules where your business is located. Not complying with licensing and permitting regulations can lead to expensive fines and put your business at serious risk.

For a complete list of federal, state, county, and local licenses and permits, visit http://www.businesslicenses.com. Once you identify which licenses or permits, you can find them on government websites or purchase them on http://www.businesslicenses.com for $19.99 each.

A. FEDERAL If your business will involve the following, contact the agency listed:

Broadcasting – Federal Communications Commission

Ground transportation, i.e. trucking – U.S. Department of Transportation

Investment advising – Securities & Exchange Commission

Manufacturing tobacco, alcohol, or firearms / Selling firearms – U.S. Bureau of Alcohol, Tobacco, and Firearms

Preparation of meat products – U.S. Food and Drug Administration

B. STATE Indiana has over 400 different licenses, permits, certifications, and other permissions, which could be required for certain businesses. Any questions regarding which licenses or permits are necessary should be addressed to the state agency that governs your profession, or contact:

State Information Center Phone: 317.233.0800 or 800.457.8283 (within Indiana)

www.in.gov/help.htm

C. LOCAL Certain types of businesses must hold special city/county permits or licenses. Businesses are classified by both size and type and fees are applied accordingly. For some businesses, occupational testing may be required to obtain a license.

City of Elkhart Controller’s Office 229 South 2

nd Street

Elkhart, IN 46516 Phone: 574.294.5471

City of Goshen Goshen Building Department 204 East Jefferson Street, Suite 5 Goshen, IN 46528 Phone: 574.534.1811 Fax: 574.533.8626

http://www.ci.goshen.in.us/260443.html

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This information has been compiled by the North Central ISBDC.

D. BUILDING & ZONING For building and zoning administration, including issuance of all permits for construction, demolition, and occupancy; for zoning regulations, e.g. proper zoning for proposed use, permitted signs and limitation of signage; for enforcement of building, electrical, plumbing, and mechanical codes for all construction and remodeling of structures; and for enforcement of design standards for the various design territories, contact:

Elkhart County Planning and Development 4230 Elkhart Road Goshen, IN 46526 Phone: 574.875.3335 Fax: 574.875.3308 http://www.elkhartcountyplanninganddevelopment.com/D1.HTM

City of Goshen Planning & Zoning 204 East Jefferson Street, Ste 4 Goshen, IN 46528 Phone: 574.534.3600 Fax: 574.533.8626 http://www.ci.goshen.in.us/260444.html

City of Elkhart Planning & Zoning Department 229 South 2

nd Street

Elkhart, IN 46516 Phone: 574.294.5471 Fax: 574.295.7501 http://www.elkhartindiana.org/department/?fDD=10-0

E. COUNTY HEALTH PERMITS Several types of businesses, including all those engaged in handling food, must obtain health permits and be inspected by the County Public Health Department.

Elkhart County Health Department Environmental Health Services

4230 Elkhart Road Goshen, IN 46526

Phone: 574.875.3391 http://www.elkhartcountyhealth.org/

V. LOCAL AND FEDERAL REGULATIONS Cities and Counties in Indiana have jurisdiction over many areas, which can affect small business. Zoning regulations and signage issues are almost always local issues. Contractor licensing (for contractors other than plumbers) is also a local option. Some areas also have a “transient merchant” license or some other regulation of those doing business without an established business location. Since regulations vary from city to city and county to county, it is always necessary to contact the local government wherever work is done. Consult a local telephone directory for contact information regarding local government offices. For general information regarding the federal government agency contact:

Federal Citizen Information Center Phone: 800.333.4636 or 800.688.9889

http://www.usa.gov/

VI. OTHER INFORMATION A. PERSONAL CREDIT

Before approaching a bank or investor for a loan, it is advisable to know the condition of your credit report. For your free annual personal credit report, go to http://www.freecreditreport.com/.

B. INSURANCE For the necessary insurance coverage, bonding or liability insurance, check with your local insurance agent. Performance bonds may be required for jobs of $1,000 or more. Financial statements or tax returns may also be needed. Licensing bonds and performance bonds sell for $50 and up.

C. TRAFFIC INFORMATION For information regarding traffic counts, streets, access roads, etc., contact:

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This information has been compiled by the North Central ISBDC.

Michiana Area Council of Government (MACOG) 227 West Jefferson Boulevard #1120

South Bend, IN 46601

Phone: 574.674.8894 www.macog.com

E-mail: macogdir@macog.com

D. RATES AND INFORMATION REGARDING UTILITIES IN THE AREA CAN BE OBTAINED BY

CONTACTING THE FOLLOWING OFFICES.

Frontier Communications Business Services Phone: 800.660.3000 http://www.frontier.com/

Elkhart Public Utilities 921 North Main Street Elkhart, IN 46514 Phone: 574.258.1630

Indiana Michigan Power Phone: 800.311.4634 www.indianamichiganpower.com

Goshen City Water & Sewer 203 S 5th St., Goshen, IN 46528 Phone: 574-533-9399 FAX: 574-533-6961 http://www.goshenindiana.org/260450.html

Northern Indiana Public Service Co. (NIPSCO) Phone: 800.464.7726 www.nipsco.com

E. DIRECTORY OF ADDITIONAL SOURCES OF INFORMATION

North Central Indiana Small Business

Development Center Phone: 574.360.9691 www.ncisbdc.org

Goshen Chamber of Commerce 232 South Main Street Goshen, IN 46526-3273 Phone: 574.533.2102 www.goshenchamber.com

Service Corps of Retired Executives (SCORE) 418 South Main Street Elkhart, IN 46516-3209 Phone: 574.293.1531 www.michiana.score.org

Nappanee Chamber of Commerce 302 West Market Street Nappanee, IN 46550 Phone: 574.773.7812 www.nappaneechamber.com

Small Business Administration (SBA) 429 North Pennsylvania, Suite 100 Indianapolis, IN 46204 Phone: 800.827.5722 or 317.226.7272 www.sba.gov

Elkhart Public Library 300 South 2nd Street Elkhart, IN 46516 Phone: 574.522.2665 http://www.elkhart.lib.in.us

Indiana Economic Development Corporation 209 North Main Street, Suite 204 South Bend, IN 46601 Phone: 574.288.6834 www.iedc.in.gov

Goshen Public Library 601 South 5th Street Goshen, IN 46526 Phone: 574.533.9531 www.goshenpl.lib.in.us/

Economic Development Corporation of

Elkhart County 102 West Lincoln Avenue, Suite 210 Goshen, IN 46526 Phone: 574.535.1022 www.elkhartcountybiz.com

Nappanee Public Library 157 North Main Street Nappanee, IN 46550 Phone: 574.773.7919 www.nappanee.lib.in.us/

Funded in part through a cooperative agreement with the U.S. Small Business Administration, the State of Indiana, The Chamber of Commerce of St. Joseph County, and our many local partners. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance by calling your local SBDC.

Independent Contractor

Appendix A

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This information has been compiled by the North Central ISBDC.

WHAT IS AN INDEPENDENT CONTRACTOR? An independent contractor is a person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required.

INDEPENDENT CONTRACTOR VS. EMPLOYEE To determine whether a worker is an independent contractor or an employee under common law, you must examine the relationship between the worker and the business. All evidence of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories—Behavioral Control, Financial Control, and the Relationship of the Parties.

Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done, through instructions, training, or other means. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job. This includes:

The extent to which the worker has unreimbursed business expenses

The extent of the worker’s investment in the facilities used in performing services

The extent to which the worker makes his or her services available to the relevant market

How the business pays the worker

The extent to which the worker can realize a profit or incur a loss Relationship of the Parties covers facts that show how the parties perceive their relationship. This includes:

Written contracts describing the relationship the parties intended to create

The extent to which the worker is available to perform services, for other, similar businesses

Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay

The permanency of the relationship

The extent to which services performed by the worker are a key aspect of the regular business of the company

EXAMPLES OF OCCUPATIONS WHERE INDEPENDENT CONTRACTOR ARRANGEMENTS ARE TYPICAL:

Accountant Interpreter or Translator Real Estate Agent

Author Market Stall Sales Representative

Dry Cleaner Massage Therapist Taxi Cab or Limousine Driver

General Contractor Personal Trainer Tradesman

Hair Stylist Private Investigator Tutor

PROS AND CONS OF WORKING AS AN INDEPENDENT CONTRACTOR:

Pros Cons

You are your own boss No job security

You set your own hours Might not get paid

You pick and choose what jobs you want to work No guaranteed set of hours

You decide how much you get paid Must pay self-employment taxes

No federal or state tax is withheld from your pay No employer-provided benefits

You can take increased business deductions May be personally liable for business debts

Appendix B

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This information has been compiled by the North Central ISBDC.

OWNER’S TIMELINE FOR STARTING A BUSINESS

9-12 MONTHS PRIOR TO START–UP

Research the idea Choose a business based on your skills and interests Choose business name, verify right to use name, register the name Choose and register the domain name for your website Determine the amount of time required to obtain business permits Identify helpful membership organizations (e.g. Chamber of Commerce, Builders Association, etc.) Visit with others in your network: attorneys, bankers, CPA's, consultants, competition Check out community amenities (real estate, schools, etc.) Subscribe to local papers Decide on business location Obtain licenses (city, county, state, industry) Prepare preliminary business plan and budget Interview bankers Determine when phone book is printed

6-9 MONTHS PRIOR TO START–UP

Check zoning ordinances Check utility requirements Prepare leasehold improvement plan Determine office and plant layout and design Choose advisors: attorney, CPA, consultant, insurance agents, and brokers Review leases and contracts with attorney and advisors Obtain bids on major business equipment Arrange delivery of equipment

4-6 MONTHS PRIOR TO START–UP

Complete business plan including marketing plan Decide on form of business organization (sole proprietor, corporation, LLC, etc.) and file papers Select Board of Directors for corporation Work with design firm or ad agency to create a logo Prepare advertisements Prepare final budget and review with banker. Order business systems: receivables, check disbursements, payroll

system Order sign for office

0-4 MONTHS PRIOR TO START –UP

Make sure business filings and license applications are complete (trademark, patents, copyright) Arrange for insurance (business and health) Arrange for telephone service installation Open checking accounts Sign up for credit card systems at local bank Arrange for business announcement ads in local papers Order announcements for office opening Arrange to give talks to community groups Consider membership in civic and church organizations Arrange for movers Contact State Department of Workforce Development Prepare job descriptions for employees Write policy manual for office employees Check local resources for personnel Begin screening process for new personnel Contact IRS for booklets (apply for Federal Employment ID number)

Appendix B

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This information has been compiled by the North Central ISBDC.

Apply for state ID number Find out about workers' compensation if you will have employees Apply for seller's permit Contact state for tax forms and employer's requirements Obtain payroll withholding booklets from tax authorities Review tax requirements with your accountant Arrange for janitorial service, waste removal, laundry service, grass mowing Order supplies: appointment cards, business cards, stationery, deposit stamp for checks, telephone message

pads Interview and select collection agency Determine business hours Determine pricing schedule Order publications (price lists, brochures, receipt forms, etc.) Purchase office equipment and furniture Start setting up office Schedule utilities to be turned on Hire and train office personnel Establish petty cash fund Prepare press release and begin advertisement Mail announcement Plan an open house Call everyone you know and let them know you are in business