FREQUENTLY ASKED QUESTIONS (FAQ):
What Should I bring to the initial counseling session?
You are not required to bring anything to the initial counseling session with your business advisor.
Besides bringing your ideas and passion for business ownership, we do recommend writing down questions and topics of interest as a starting point.
Besides bringing your ideas and passion for business ownership, we do recommend writing down questions and topics of interest as a starting point.
Do I need to write a business plan?
Yes. Everyone should develop a business plan. It helps translate ideas into action.
There a numerous advantages of writing a business plan, such as:
In addition, a business plan will be an essential document for those seeking funding or selling an existing business.
Read more about the importance of the Business Plan below:
There a numerous advantages of writing a business plan, such as:
- Setting clear goals and objectives
- Determining startup costs
- Minimizing legal issues
- Bench-marking progress
In addition, a business plan will be an essential document for those seeking funding or selling an existing business.
Read more about the importance of the Business Plan below:
What is the best business structure to choose?
Determining a business structure should be carefully considered. Each structure has its own advantages and disadvantages, along with legal and tax implications.
The 4 major types of business structures include:
For an overview of each structure, please visit:
The 4 major types of business structures include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Partnership
- Corporation
For an overview of each structure, please visit:
Am I required to have a business license and permit to operate in New York State?
There are federal, state and local regulations that may affect various industries that operate within New York State.
The NYS Business Center is a good place to start to determine what is required.
The NYS Business Center is a good place to start to determine what is required.
Where do I file for a Federal Employer Identification Number (FEIN)?
The Internal Revenue Service (IRS) provides operating businesses with a unique identification number.
This item will be needed for businesses with or without employees, as well as, collecting and remitting sales tax. Notably, sole proprietors may use their social security number to file, but it is not recommended due to the increases in identity theft.
This item will be needed for businesses with or without employees, as well as, collecting and remitting sales tax. Notably, sole proprietors may use their social security number to file, but it is not recommended due to the increases in identity theft.
What type of insurance is required for a small business?
Having insurance is intended to alleviate possible lawsuits and other risks.
Therefore, we recommend meeting with an insurance agent to review coverage options and cost.
The Small Business Administration describes three types of business liability coverage small businesses should consider:
Please view the following document for more information - Legal requirements: In New York State
Therefore, we recommend meeting with an insurance agent to review coverage options and cost.
The Small Business Administration describes three types of business liability coverage small businesses should consider:
- General liability coverage: This type of coverage protects you in case you are sued because of accidents, injuries or claims of negligence. For example, if someone is injured on the premises of your business and files a lawsuit against you, this type of coverage may (depending on the situation) help cover some of the related costs.
- Product liability coverage: If your company manufactures or sells a product, this type of coverage may come in handy. It protects you in case your product is defective and causes injury or damage.
- Professional liability coverage: Businesses that provide services often purchase this type of coverage, which protects against errors and negligence. One example, according to the SBA, is the malpractice insurance that doctors are required to carry.
Please view the following document for more information - Legal requirements: In New York State
What is the first step when starting a home-based business?
Cities and counties zone land for the purpose of commercial, industrial, recreational, and residential purposes.
It is highly recommended that you contact your city and county zoning board to see if you can have a home-based business. If you live in a condo or townhouse, it is also recommended for you to contact your Home Owners Association (HOA) regarding bylaws.
County Zoning Sites:
It is highly recommended that you contact your city and county zoning board to see if you can have a home-based business. If you live in a condo or townhouse, it is also recommended for you to contact your Home Owners Association (HOA) regarding bylaws.
County Zoning Sites:
Does the SBDC provide Financing?
The SBDC does NOT provide financing.
However, we do provide information about financing options to start or expand an existing business. Business advisors can assist by assembling financial projections, identifying sources of funding, and helping you prepare for a lender meeting.
However, we do provide information about financing options to start or expand an existing business. Business advisors can assist by assembling financial projections, identifying sources of funding, and helping you prepare for a lender meeting.
How do I get a business loan?
Beyond creating a business plan and financial projections, lenders vary in loan practices.
Some lenders are more willing to take risk, while other lenders are not. Therefore, it is recommended that you understand the general guidelines prior to application submission to reduce the risk of missing documentation and time, etc.
Typically, lending organizations consider the following information about loan proposals:
Some lenders are more willing to take risk, while other lenders are not. Therefore, it is recommended that you understand the general guidelines prior to application submission to reduce the risk of missing documentation and time, etc.
Typically, lending organizations consider the following information about loan proposals:
- Business idea and plan
- Personal and business credit history
- Down payment and collateral
- Ability to repay the debt
- Market and economic conditions
Are there business grants available?
The Small Business Administration states federal, state and local governments offer a wide range of financing programs to help small businesses start and grow their operations, such as low-interest loans. However, most small businesses do not qualify for government grants.
Learn More Here: The Facts about Grants for Small Businesses
Learn More Here: The Facts about Grants for Small Businesses
