Starting a business is a challenging and rewarding undertaking. There are several steps that you must take before starting your business to ensure its success. Below is a list of frequently asked questions that should assist you in making the decision to start a business. It is highly recommended that potential businesses owners attend the Smart Start Workshop.

Q: I am thinking about starting a business. Where do I begin?
A: There are several areas you should explore before starting a business.

Below is a list of the steps you should take:

1. Perform a self-assessment to determine whether or not you truly wish to start a business.
2. Determine what type of product or service you wish to provide.
3. Research the market to determine the level of demand that exists for your product or service.
4. Write a well throughout, comprehensive Business Plan. This is probably one of the most important pre-venture steps that you can take. It helps you to refine your business concept and map out a clear path to entrepreneurial success.

Q: Now that I have decided that I want to start a business and I have identified a product or service for which there is sufficient demand to support my business, what steps must I take to start a business in Maryland?
A: The following checklist outlines the basic steps for starting a business in Maryland.


• SELECT YOUR BUSINESS STRUCTURE
The first step in establishing a business is to determine which form of business structure is most appropriate for your operations. The four most common are the sole proprietorship, partnership, corporation and limited liability company. For more information on these business structures, click here.

• SELECTING AND REGISTERING YOUR BUSINESS NAME
For more information about registration requirements for legal entities, visit: http://www.dat.state.md.us

• OBTAIN PERSONAL PROPERTY TAX INFORMATION
Taxation: Maryland's One-Stop State Tax Registration
All businesses must fulfill their tax obligations to the federal government and the State of Maryland. To help determine the taxes for which your business will be liable, complete Maryland's Combined Registration Application.

http://www.comp.state.md.us, http://www.comp.state.md.usnewbiz.html

• OBTAIN FEDERAL, STATE, COUNTY AND LOCAL TAX INFO.

Federal Taxation Requirements. Internal Revenue Service
New businesses should contact the Internal Revenue Service (IRS) to register for an employer identification number, income tax business and employee withholding, social security, federal unemployment insurance and other federal taxes. The IRS provides business kits for three types of businesses: sole proprietorships, partnerships and corporations. For additional information, contact: http://www.irs.ustreas.gov

• CHECK COUNTY AND LOCAL ZONING REQUIREMENTS

Obtaining Zoning Approval
Be sure you choose a location properly zoned for your business activity. Other factors to consider include regulations on business signs and parking at the location. If you are planning to operate from home, you will need to consider whether your community or county restricts home-based businesses.

To obtain more information on local zoning and building requirements, contact the planning and zoning department in the county in which your business will be located.

• CHECK STATE AND LOCAL LICENSE REQUIREMENTS

Business Licenses
A State of Maryland Business License is required for most businesses, including retailers and wholesalers. A traders license is required for buying and reselling. Applications for the Maryland business license may be obtained from the Clerk of the Circuit Court in the county in which your business will be located. Goto http://www.blis.state.md.us.

• APPLY FOR NECESSARY BUSINESS LICENSES

Regulatory Licenses - There are several different state agencies that you may need to contact to obtain a license depending upon the type of business that your are starting.

1. Department of Labor, Licensing and Regulation. Responsible for the enforcement of commerce, employment and workplace and public safety laws.

2. Division of Occupational and Professional Licensing. Regulates many business occupations and professions.

3. Division of Employment and Training. Responsible for the administration of the unemployment insurance laws. New businesses are required to pay unemployment insurance taxes and should contact the Division to establish an account. (410) 767-2400

4. Division of Labor and Industry. Protects and promotes the health, safety and employment rights of Maryland citizens


Q: What Options are Available for Financing My Business?
A: There are several sources available for financing your business.

Personal Savings Relatives and Friends , Banks and Credit Unions State and Local Loan Funds , Venture Capital Firms (hot link to VC section)

To obtain financing from sources other than personal savings, you should prepare a loan package that includes a description of your business concept, management profiles, market information on you product or service and financial. For assistance in preparing a loan package, contact your local SBDC (Hot link to contact page) office to speak with a counselor or sign up for a workshop.

Q: Can you help me become certified as an 8a or Small Disadvantaged Business?
A: Yes, you may check the workshops offered in your area see when the next 8a certification class will be offered.


Q: Can you help me apply for certification with the state?
A: Yes, you can contact your local SBDC office for assistance.