If you don’t get your question answered here, please contact us at: (203) 776-6172 Or Toll Free (866) 776-6172

How do I get started in a business?

The U.S. Small Business Administration (SBA) provides a wealth of information on starting a business through its “Small Business Planner.” Within this category, you will find information on entrepreneurship, writing a business plan, and managing and growing your business.

Connecticut Licensing Info Center (CT-CLIC) also provides a step-by-step process to lead you through the various licensing and registration requirements with “Smart Start for Business.”

Visit our Business Resource Center for more information about these programs and other Non-Financial Assistance in Connecticut and Rhode Island.

What is a business plan and why do I need one?

A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

What is a DBA?

DBA is an acronym for “Doing Business As” (also known as a “Fictitious Name.”).
Most states require that sole proprietorships and partnerships that are conducting business under a name other than the owner(s) must file for a DBA certificate in the county where business is conducted. The DBA certificate is generally obtained at the Clerk of Court of the county in which business will be conducted. Fees are usually nominal and most courthouses have records that may be searched to determine if your suggested name will be unique.

What type of business entity should I choose?

There are four primary legal forms of business from which to choose from.

1. A Sole Proprietorship is owned by an individual and it may have one or more employees. Operating a sole proprietorship means that the owner is personally responsible for all liabilities of the business. The owner is also taxed on a personal level for all profits generated by the business.
2. A Partnership occurs when 2 or more people agree to share ownership of a business. This form of business allows the partners to share complimentary skills and resources. The owners share, and pay personal taxes on, the profits of the business. Each partner is responsible for the liabilities of the business.
3. A Limited Liability Company (LLC) is a combination of the corporate form (providing limited liability) and the partnership form (allowing you to be taxed as a partnership).
4. The Corporate Entity is created when your business registers with the Secretary of State’s Bureau of Corporation. This enables the owners to take advantage of the limited liability aspect of the corporate ownership and to raise equity by selling shares of the company. For-profit entities have the option to choose either a C-Corporation or Subchapter S-Corporation. If you become a C-Corporation, the corporate profits are taxed and the owners will be taxed on their share of the profits and compensation received from the corporation. A Subchapter S-Corporation does not pay a corporate tax.

I’m interested in exporting. What is the process?

The U.S. Small Business Administration provides export information and development assistance to help small businesses take advantage of export markets including trade counseling, training, legal assistance and publications. You can visit SBA’s web site at http://www.sba.gov/oit/. U.S. Export Assistance Centers, located in major metropolitan areas throughout the United States, are one-stop shops ready to provide your small or medium-sized business with local export assistance. Visit our Business Resource Center for Connecticut and Rhode Island export offices.

Do I need to obtain a Federal Employer Tax Identification Number (EIN)?

Generally all businesses need an EIN. You can also call (800) 829-4933 to get an EIN. Taxpayers can fax EIN requests by dialing the fax number to one of three IRS campuses that accept applications. You can find this information online at: www.irs.gov/smallbiz, click on New Businesses.

How do I register my business name with the Secretary of State?

If you are going to do business as a limited partnership or a limited liability company under a name other than your own in Connecticut, you need to register your trade name with the Secretary of State. To register online with the Secretary of State go to: http://www.ct.gov/sots/cwp/view.asp?a=3175&q=391762&SOTSNav_GID=1844 or call (860) 509-6002. If your business is a sole proprietorship (owned and operated by an individual) or a general partnership, you do not need to register your business entity with the state.

Rhode Island businesses should visit The Rhode Island Office of the Secretary of State’s Business Information Center at: http://www.sec.state.ri.us/corps/businessinfo/bic.htm for information specific to your state.

*NOTE: There may be state, city, or town permits or licenses that are required to operate your business. Also, your name should be registered with your local Town Clerk.

How do I know what licenses or permits I need for my business?

Several types of businesses and professions require state licensing. The Connecticut Licensing Information Center (CT-CLIC) is Connecticut’s gateway for business registry. The web site provides over 900 licenses, permits and registrations among 29 licensing agencies. It also provides contacts and links for downloadable forms. Smart Start is on the CT-CLIC website and provides simplification for businesses to become fully qualified with Connecticut laws. Free personalized assistance is available through Smart Start to assist businesses through the registration process. Visit CT-CLIC on the web at: www.ct-clic.com or contact Smart Start at (800) 392-2122 or e-mail: SmartStart@cerc.com.

How do I obtain Business Insurance?

Business Insurance protects the contents of your business against fire, theft and other losses. Contact an insurance agent or broker of your choice. Common types of insurance are Liability Insurance, Property, Business Interruption, Key Man, Automobile, Officer and Director and Home Office.

How do I know what taxes are required by the Government for my business?

Like state income tax, the method of paying federal income tax depends on your legal form of business.

• Sole Proprietorship: You must file IRS Federal Form Schedule C along with your personal Federal Income Tax return (Form 1040) and any other applicable forms regarding gains/losses.
• Partnership: You must file a Federal Partnership Return (Form 1065), which only shows gross and net earnings of profit/loss. Also, each partner must report his/her share of partnership earnings on his/her individual Form 1040 based on the information from the K-1 filed with the Form 1065.
• Corporation: You must file a Federal Corporation Income Tax (Form 1120) Return. You will also be required to file a personal federal income tax return (Form 1040) on your earnings from the corporation based on the W-2 received from your employer.

How do I know what taxes are required by the State for my business?

The Connecticut Department of Revenue Services is the agency responsible for tax laws and collecting state tax revenues. They provide useful information on their website at: www.ct.gov/drs. Their phone number is (800) 382-9463. Employers are also required to register with the Connecticut Department of Labor (DOL) for payment of unemployment and workers compensation taxes. The DOL website is: www.ct.gov/dol and phone number is: (860) 263-6000.

The Rhode Island Department of Revenue provides information on their website at: www.dor.ri.gov. Their phone number is (401) 574-8999. Rhode Island Department of Labor: www.dlt.state.ri.us or (401) 462-8000.

If I am self employed, how do I report my taxes?

Self-employed business owners are required to pay state and federal income taxes, Social Security, and Medicare based on the profits from the business. Profits in a proprietorship are determined before you draw compensation from the business. Once your liability for federal income tax and self-employment FICA exceeds $500, you will need to deposit the tax payments to the IRS. Be aware that if you don’t deposit the appropriate taxes for any individual quarter, or for the year, the IRS can and will impose stringent penalties and interest. If you need these forms, contact your local IRS office or Business Answers for their Estimated Income Taxes and Self- Employment package.

What is CTCIC’s Area of Operation?

CTCIC operates in the entire state of Connecticut and certain counties in Rhode Island.

How do I apply for a Loan?

Contact CTCIC and inquire about financing.