1. What Do I Have To Do To Be A Legitimate Business?
   This question is asked often. Usually the person wants to know what license, permits, organizational structure, etc., are required for their particular business. We can assist them with this information and advise how they can obtain it. Getting the name of the business registered is also something we can assist with.
    
2. How Do I Know If I Can Use The Business Name?
   A search should be done with the Secretary of State's Office. If the name is available for use, then it should be registered using either a trade name registration form or a fictitious name registration form. These forms are available at our SBC office, or by calling the 1^st Stop Business Connection at 1-800-248-4040.
    
3. What permits, licenses, and approval do I need in order to operate?
   This depends on the type of business that you have or are starting. Various businesses such as those that are dealing with food products, chemicals, health related businesses and many others must meet certain requirements in order to obtain approval to operate. We suggest that you contact the local agencies that regulate your particular business. Such agencies that may be included are: the local zoning office, health department, EPA (Environmental Protection Agency), and the County Auditor's Office. You will need to obtain a vendor's license if you are selling a product or service that is subject to charging sales tax. Licenses and permits are required for many different kinds of businesses. Our counselors can assist by directing you to the proper agencies.
    
4. What Are My Options For Financing?
   The SBDC Consultants discuss the financing options available based on the clients business needs. This includes conventional loans through a financial institution, use of the SBA (Small Business Administration) Loan Programs, as well as investor financing. There are also some local and state government loan programs available.
    
5. Am I Eligible For Any Grants?
   Eligibility for grants depends on the criteria of the grant program. If you meet the requirements, you may be a candidate to apply. Grants are not as plentiful as it appears through the media, and most clients are not likely to get "free money" unless they fit the criteria.   www.sba.gov/financing/indexloans.html
    
6. How Do I Prepare A Business Plan?
   The Consultant can give you different guidelines to use in preparation of a business plan. We will also give you some suggestions and ideas, but you should develop the plan. It is your business, and it should be your thoughts and ideas conveyed in writing. We will review it for you and make comments and suggestions. A business plan is primarily for the owner(s) of the business but also is usually required by lenders and investors.
    
7. Should I Consider Incorporating Or Forming a LLC?
   That is a legal issue and should be addressed with an attorney and perhaps an accountant. We can share information about each of your options for legal structure and give you material and forms to review. The best form of oganizational structure depends on your business and it will be operated.
    
8. Do I Need A Tax Identification Number?
   Not always, such as if you will operate as a sole proprietor. Any other type of organizational structure would require you to have a tax identification number. Application for an EIN is through  the Internal Revenue Service using a SS-4 form. You can download it off the IRS web site or obtain an application through our office.
    
9. What Do I Need To Buy An Existing Business?
   You need as much information as you can obtain from the owners. It is suggested, and usually required by financial institutions, to obtain at least the last three year's tax returns or accountant prepared financial statements. This includes a current balance sheet, and profit and loss statements on the business. A copy of the purchase agreement will eventually be needed that includes a listing of equipment and inventory. We can provide a checklist of items needed and help you prepare a package for your lender if you are seeking financing.
    
10. "It is my understanding that because I am a female, I am considered a minority when it comes to owning a business," is this true?
    This is no longer true. Females were given the status of minority business owners through much of the 1980's and part of the 1990's. Today it is fairly equal in number for male and female business owner, and several programs have been enhanced to give both groups an equal opportunity for assistance. There are some programs available to give women business owners some assistance, such as the SBA Small Business Assistance for Women,  the Ohio Women's Business Development Council (OWBDC), and the Women's Business Enterprise National Council (WBENC).

©2001 The Ohio SBDC at Youngstown State University
The Ohio SBDC at Youngstown State University
One University Plaza  •  Youngstown, OH  44555
Office: 330.746.3350  •  Fax:330.746.3324