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Going into business - a checklist:
A Business Plan is written strategy for the operation of your business. It should include:
An Accountant or Certified Public Accountant (CPA) is professionally trained in recording, summarizing, analyzing, reporting, and in the filing of financial transactions:
- Choose an accountant that speaks the same language you do and that understands your needs.
- Get recommendations from friends and other business associates.
- Do not go into business without one.
The Business Structure is the type of legal structure established for your business:
- Sole proprietorship
- Partnership
- Corporation
- Limited Liability Company
- "S" Corporation (IRS Designation, form 2553)
A Bookkeeping System is a recording procedure used to track all financial transactions:
- Set one up before you open for business.
- It will save you time and money.
- It will relieve stress and enable you to keep abreast of how you are doing.
A Federal Employer Identification Number (FEIN, FIN, FEN) is a nine-digit number assigned to sole proprietors, partnerships, corporation, and other entities and is used for filing and reporting purposes:
- "Application for Employer Identification Number", Form SS-4. is available at your local IRS office or by calling (800) 829-1040.
- There is no filing fee.
A Michigan Sales Tax Number is a number assigned to any business that sells tangible personal property to the end user from a Michigan location for filing and reporting purposes. (Wholesalers do not need to register.):
- "Registration for Michigan Taxes", Form C-3400, is available at your local Michigan Department of Treasury or by calling (517) 373-0888 ext. 3. You can receive a sales tax ID number over the phone in 15 minutes. The hard copy registration takes 4 to 6 weeks to receive by mail.
- For sales and other tax questions call (517) 373-3190.
- The local, U.P., number for sales tax questions is (906) 786-6334.
- The State of Michigan tax information Internet site is www.state.mi.us
A "Certificate of Persons Conducting Business Under an Assumed Name" (D.B.A.) is a legal register of your business name with the county in which you are doing business:
- Is recommended for sole proprietors and partnerships.
- Establishes you as a legitimate business.
- Protects your business name in the county in which you file for up to 5 years.
- Apply at your county courthouse.
- A $10.00 filing fee is assumed in most counties.
Special Licensing is legal permission to engage in businesses that require unique consideration to operate:
- For example, restaurants are required to be licensed through the state health department.
- Check with your county courthouse or call the Michigan Economic Development Department at (517) 373-9808 to determine if you need any specific licensing.
- Visit medc.michigan.org for additional information.
Insurance is a means of guaranteeing protection for your business, employees, and yourself. Check with an insurance agent to find out what types of insurance you may need:
- General business insurance which includes fire, etc.
- Liability
- Business Interruption
- Workers Compensation (If you have any employees you need this insurance.)
- As in the case with any insurance, shop for the best price and service.
A Business Checking Account is an account established in your business name --- not for personal use:
- You will need your Social Security number and if you have employees, an employer federal identification number.
- Business checking is essential for keeping accurate records.
- Balance the checking account once a month!
A Telephone/Fax Machine heightens the possibility of clear and timely communications. You may use your home telephone to get started if you are working out of your home, but in order to get a business listing in the directory you must set up a business line:
- For set up call (800) 660-3000.
- The general first-time business setup fee is $100.
- The monthly rate is around $20 per month plus 8.5 cents per call.
- Find out when the directory "closes" in your area. Usually you need to get your order in several months before the directory is published or you have to wait another year to get listed.
Zoning regulations specify which geographical areas are reserved for different purposes:
- Check with your township office for any special requirements or restrictions on the use of your property.
- Check with your county if your area does not have a township office.
Federal and State Regulation and Safety Posters such as: Minimum Wage Act, Polygraph Protection Act, Equal Opportunity of Minors, Occupational Safety and Health Act, and Family Medical Leave Act are required in by law if you have any employess.
- To order these call (800) 748-0344.
A W4 - Employee Withholding Allowance Certificate is required of all employees to determine payroll deductions amount.
- Keep W4’s in the employee's personnel file.
- Available at the federal IRS office, or by calling (800) 829-1040.
The I-9 - Immigration Compliance Form verifies employee's citizenship status.
- Keep the completed I9 in the employee's personnel file.
- To order these forms call (800) 870-3676 or write the US Immigration Service, 333 Mount Elliot, Detroit, MI 48207.
Basic Marketing Tools are the most basic materials needed to promote a business. They include:
- Web Site
- Signage
- Business cards
- Stationery
- Thank-you notes
- Ad slicks
- Brochure
Sense of Humor - "If you lose the ability to laugh, you lose the ability to think."
- Charles Darwin
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