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Question: What is a Tax Identification Number, and why do I need
one?
Answer: A Tax ID Number is a 9 digit number assigned to Sole
proprietorships, Corporations, Partnerships, etc. for tax filing purposes,
and is used to identify a business entity for federal and state
purposes. For more information refer to:
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
Question: What is an FEIN Number? Do I have to get one?
Answer: The Federal Employer Identification Number (FEIN)
is the same thing as the Federal Tax ID number. Refer to the answer
of question #1 for more information.
Question:
Can I use my Social Security Number instead?
Answer: A sole proprietor can use their social security number as
their tax id number only if they have no employees and doesn't file excise
or pension tax returns. A sole proprietorship is the only business
allowed to do this. For more information refer to:
http://www.irs.gov/faqs/faq-kw82.html
Question: Why do I need a Business Plan?
Answer: A business plan is usually the starting point to getting
funding for your business whether it be from a bank loan, investor, or
government. You may have your company's complete financial and
business goals in your mind, but the plan allows you to put that
information on paper. It is basically a blueprint for the success of
your business, providing you the direction you want your company to go
in. To sum it up, many businesses fail, because the owners fail to
plan.
For more information about Business Plans -
sba.gov
For Business Plan Software -
PaloAlto
Question: Do I also need a Marketing Plan?
Answer: As like a business plan, the marketing plan is a
blueprint, giving you a clear path to follow explaining how you will be
generating sales and customers for the success of your business. I
recommend creating both plans at the start up of your venture.
For more information about Marketing Plans -
sba.gov
For Marketing Plan Software -
PaloAlto
Question: What about local permits and zoning laws? Do they
apply to me?
Answer: That really depends upon which state you live in, and the
area. For example, I am in a rural area in Illinois, and did not
need any local permits to start my business.
Click here for a list of
links for each state, giving you a starting point to find the
state and local information you need
Question: Are there Trade Associations to help me with my
business?
Answer: Yes, absolutely! Check out the following:
Your Local Chamber of Commerce, as well as:
SCORE
Small Business Association (SBA)
International Guild of Candle Artisans (IGCA)
National Candle Association (NCA)
National Small Business Association (NSBA)
Question: Should I join my local Chamber of Commerce? What
would be the benefits of doing this?
Answer: Joining your local Chamber of Commerce can open many
doors for your business, and provide leads for you to grow your
business. For example, at one point in our lives, my husband and I
operated a transportation service in Monterey, CA.
We joined the chamber of commerce, and the information received was
well worth the membership fee. We received the names and phone
numbers of all hotels, restaurants, lodges, etc in the area. We were
also given a comprehensive list of all business conventions, meetings and
their contacts for the year. This information helped us market, in
advance, to the businesses that were coming into town for their
meeting/convention.
Memberships many times will also include members only discount
programs, products and services, which could include phone, cellular,
printing, and delivery services.
Question: What is SCORE and how will it help my business?
Answer: SCORE is an nonprofit association that provides
entrepreneurs with free counseling whether it be face-to-face with a
consultant, or email consulting. The volunteers are experienced
active or retired entrepreneurs, corporate managers and/or executives.
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