Business start-up information:
• Types of business organizations
• The top ten entrepreneurial traps/mistakes
• Take these steps before you start your business
• Business regulations

Helpful Websites:
• CT: Chapters and Chambers of Commerce

• CT Economic Development Commissions (download word document)

• More websites

Business plans:
• Case study
• Business plans outline (download word document)

• Business plans workbook (download word document)
• Business plan checklist (download word document)
• Risk management

• Excel Spreadsheets for starting your Business Plan

Business regulations:

A new business is subject to some or all of the following local, state or federal requirements depending on its size, form of organization, and number of employees.

Sales Tax
Almost all businesses selling retail products - and some businesses providing a service - must collect sales tax. Consult the Dept. of Revenue to determine your status.

Seller's Permits
May be required of every individual, partnership, corporation, or other organization making retail sales or rentals of tangible personal property or taxable services in the State. Contact the Dept. of Revenue for information. (NOTE: Sales to customers in other states may be subject to different tax. Check with the Department of Revenue in that state.)

Consumers' Use Tax Permit
The purchase of property or services outside of the state and consumed, used or stored in the State can require the payment of a use tax if sales tax was not paid already. Check with the Dept. of Revenue.

Federal Employer Tax I.D. Number
A federal tax number is not required if a business has no employees and is organized as a proprietorship (a social security number is sufficient). If the business becomes a partnership, LLC, incorporates, or hires an employee, a federal tax number is required. Applications (S 54) are available where IRS forms are distributed, or on the IRS website. All new business owners should obtain a free federal business tax kit that includes information on tax l.D. numbers and regulations covering hiring an employee and other tax issues (call the IRS 800 number).

State Withholding Tax I.D. Number
No tax number is required if there are no employees and the firm is operated as a proprietorship. All income from the business will be reported on supplementary tax forms for the 1040 (for federal) and copied for the state submission for that business as a part of personal income. For complete information, contact the Dept. of Revenue.

Estimated Tax
Generally, sole proprietors, partners, and shareholders of an S Corporation pay tax on income by making quarterly estimated tax payments if they expect to owe taxes of $1,000 or more (including Social Security and Medicare) when they file their annual return. Use Form 1040-ES.

Social Security
Business owners generally have to file quarterly estimated federal income taxes. At that time, Social Security obligations are computed by filling out the quarterly estimated tax form. See IRS Publication 15 'Employers Tax Guide' (available on the IRS website).

Business Name Registration
Some cities / towns have a business name registration ordinance. To learn if a name has already been registered with the State, call the state’s Secretary of State’s Office.

Business Organizations
Any entity other than a proprietorship requires contact with the state’s Secretary of State’s Office. For more information, contact the SBA - SBA pub. MP25 - "Selecting the Legal Structure for Your Firm".

Zoning
A business operating out of any building must be zoned for business use in that geographic area. An office in the home that receives clients or regular shipments probably must be zoned "commercial." Zoning can be checked with your area building inspector's office. Businesses involving food or lodging will generally have health inspection requirements. For information, contact the State Division of Health or the local county Health Department.

Fire Department Inspection
Businesses having regular entry and use of the facilities by the public housing, or use of flammable materials, will generally need a fire department inspection. Consult the local fire department.

Safety and Buildings
Any major remodeling may require plan approval by local municipalities and may also require a building permit.

Requirements for businesses with employees
When hiring any employees, a business must conform to certain requirements. Both federal and state laws regulate employment. The following list briefly summarizes the major areas of law:

• Equal Rights and Opportunity
It is illegal to discriminate against job seekers and current employees based on sex (including pregnancy), age (40 and over), race, color, national origin, ancestry, religion, handicap, sexual orientation, marital status, and, in most cases arrest or conviction record.
• Payroll Taxes
There are two types of payroll taxes: those withheld from employees' pay, and taxes paid by the employer. Withholding from employee pay is required for Social Security (FICA) taxes and for federal and state personal income taxes. Employers need a federal tax I.D. number and employees need to fill out W­4 and WT-4 forms. The federal tax kit includes information on withholding requirements. For state information, call the State’s Dept. of Revenue.
• Unemployment Compensation
If you have an employee to whom you pay more than a certain amount of wages during a calendar quarter, or one that is employed some part of a day in 20 or more calendar weeks, unemployment taxes must be filed. Get information and forms from the State’s Dept. of Revenue.
• Worker's Compensation
A business may also be required to have coverage under the Workers Compensation Act. This coverage is obtained through a private commercial insurer. For information, contact the State’s Dept. of Revenue.
• Labor Standards Laws
Both federal and state laws cover the pay and treatment of employees. Call the U.S. Dept. of Labor, Wage, and Hour Division and/or the Equal Rights Division.
• Independent Contractors
Any worker is an employee unless an employer can prove otherwise. Call the IRS at (800) 829-1040 or visit their Web site for forms and guidelines on employee vs. independent contractor status.
• Employee Benefits – Insurance, Pension and Profit Sharing.
Employers who pay voluntary benefits are subject to regulations aimed at protecting workers from mismanagement of funds and discrimination. Consult an attorney about the Employee Retirement Income Security Act (ERISA) "Section 89" regulations and other applicable laws.
• Immigration Law
Employers must take steps to insure that employees are eligible to work. See the Immigration and Naturalization website at http://www.ins.gov.
• Occupational Safety and Health Administration
There are federal regulations and standards for work place safety. For information on required compliance, contact OSHA.
• Posting of Labor Law Posters
Employers are required to post various posters to inform workers of their rights. Ask each regulating agency about posting.