The Akron Legal News

SBA offers many tips for starting a business

ELISSA COLLOPY
Special to the Legal News
Published: May 9, 2017

With the arrival of National Small Business Week, many organizations are gearing up for classes, webinars and panels to discuss ways small businesses can thrive.

For those wanting to start a small business, the task may seem daunting. However, the Small Business Administration offers 10 steps to help entrepreneurs start a small business.

According to the administration, starting a business involves planning, making key financial decisions and completing a series of legal activities.

To help prepare and manage a business, they list these 10 tips:

• Write a business plan. The administration provides a written guide to help map out how to start and run a successful business.

A business plan generally projects three to five years ahead and outlines the route a company intends to take to grow revenues, including an executive summary, company description, market analysis, marketing and sales, organization and management, financial projections and funding requests.

• Get business assistance and training. They suggest taking advantage of free training and counseling services ranging from preparing a business plan and securing financing to relocating or expanding a business.

A multitude of tutorials are available on the SBA's learning center with courses such as Understanding Your Customer, Buying a Business, to How to Prepare a Loan Package.

• Choose a business location. Get advice from the administration on how to select a customer-friendly location while complying with local zoning laws. This is seen as the most important decision a small business owner or startup will make, according to the administration.

It involves looking a demographics, assessing supply chains, scoping out any competition, staying on budget and understanding state laws and taxes.

The bottom line? Do research. The administration suggests utilizing free government-provided demographic data to help in your efforts such as American FactFinder or U.S. Census Bureau Quick Facts.

• Finance the business. Find government backed loans, venture capital and research grants to get your small business off the ground.

The administration offers a variety of loan programs for specific purposes including: General Small Business Loans: 7(a), Microloan, Disaster Loans, Loan Programs and Real Estate and Equipment Loans: CDC/504, all listed and explained on sba.gov.

• Determine the legal structure of the business. Decide which ownership is best for you, whether it be sole proprietorship, partnership, a Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.

• Register a business name. Register with the state government and learn which tax identification number will be needed to obtain from the IRS and Ohio's state revenue agency.

This is seen as an important branding exercise, and is also known as registering your "Doing Business As" name. A DBA is needed if you structure your business as a sole proprietor or partnership, or if you are an existing corporation or LLC wanting to do business under a name other than your existing name.

Registering is either done with your county clerk's office or with state government, depending on your business location.

• Register for state and local taxes, which includes obtaining a tax identification number, worker's compensation, unemployment and disability insurance.

• Obtain business licenses and permits. The administration recommends getting a list of federal, state and local licenses and permits required for your business.

• Understand employer responsibilities. Learn the legal steps you need to take to hire employees, the administration suggests.

Those include obtaining an Employer Identification Number, set up records for withholding taxes, and verify an employee's eligibility to work in the U.S.

• Find local assistance. The administration offers free counseling, advice and information on starting a business, free consulting services through the network of Small Business Development Centers, offers guaranteed loans for credit-worthy veterans, and have Women's Business Ownership Representatives available to advise women business owners.

To take advantage of the administration's help and resources, visit www.sba.gov.

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