Checklist to Starting a Business
Checklist to Starting a Business
The following checklist can be used as a guide as you start your business:
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ü Decide upon the legal structure of your business, choose a business name and register your business with the appropriate state and/ or federal agency.
ü If your business will have employees, you must open federal, state and local wage withholding and payroll tax accounts.
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ü If your business will be selling, renting or leasing tangible personal property, you must obtain state and local sales tax licenses. If you rent accommodations for less than 30 days, a sales tax license is required.
ü Be aware of the personal and business tax implications of starting you own business.
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ü Define the products or services you will provide. Is there actually a need for what you will provide in today's marketplace? Is the demand great enough to be profitable? Who are your competitors? What is your competitive advantage? Develop your marketing strategy
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ü Are there any special licenses required for the ü Find the best location for your business. The Colorado Department of Transportation, 4201 E. Arkansas Avenue, West Annex, Room A-100, Denver, CO 80222; (303) 757-9488 has informa-
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tion on traffic patterns on state highways. Some local governments have information on city and county roads. They may also have information on local population demographics. The U.S. Census Bureau, (303) 969-7750, is also a useful resource for population demographics. Be sure to observe pedestrian movement during business hours to estimate walk-in potential. |
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ü Check with the local city and county government regarding any special business regulations, sales taxes, personal property taxes and zoning restrictions affecting your business.
ü Seek management advice and counseling. Assemble your team of professional advisors, for
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example, an accountant, an attorney, an insurance broker, a real estate agent, etc. Your local Small Business Development Center, the Small Business Administration, trade associations and your local chamber of commerce are good resources.
ü Develop a sound business plan with specific goals and objectives. A business plan should |
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outline your background, including your strengths and weaknesses, show where you are today, where you want to go and how you plan to get there.
ü Develop a financial plan, include profit and loss |
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projections, cash flow analysis and capital requirements. Determine the proper pricing strategy for your product or service. Do you have enough resources to adequately support your business and yourself until you begin making a profit? What type of financing will your business need? What financing options are realistic for your situation?
ü Identify your liability risks. Obtain adequate insurance coverage. Protect your business |
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activities far enough in advance to cover your growth.
ü Protect your ideas, products, symbols and logos through the proper registration and maintenance. |
The COLORADO BUSINESS ASSISTANCE CENTER provides general information to assist you in starting and maintaining a business. It is designed to save you time by providing you with most of the city, state and federal forms necessary to establish a business in Colorado. Depending on your individual requirements, you will find included in this packet:
ü The application for the Employer Identification Number, form SS-4. This application is for a Federal Employer Identification Number (FEIN) which must be filed by all businesses except sole proprietors. A sole proprietor is only required to file this form if s/he will have employees. A sole proprietor without employees may elect to file this form but is not required. Sole proprietors will use their Social Security as their FEIN. There is no fee associated with processing the application or issuing a FEIN. A FEIN is necessary to establish social security (FICA), federal withholding and federal unemployment (FUTA) accounts and to file income tax returns.
ü The Colorado Business Registration Form, form CR100, is a multi-purpose form used to: register a trade name; open a state sales and use tax accounts and establish state withholding and unemployment insurance accounts.
ü The Trade Name Registration, form DR0592, is the application used by general partnerships and sole proprietors who only need to register their trade name.
ü The Sales Tax Special Events application, form DR0589, is the application used to obtain single and multiple event sales tax licenses and may be used to register a trade name.
ü City Sales Tax applications are included, whenever possible, for required city sales tax licenses or business registration. If the city sales tax application is not included or for any additional city forms, contact the appropriate city clerk.
The Business Assistance Center provides basic information for starting a business in Colorado; however, it must be stressed that we are only a starting point. We do not provide legal advise or replace the services of an individual business attorney or accountant. There may be additional permits, regulatory requirements or forms for your particular enterprise. Operating your own business will require additional research for planning, marketing and financing of your business. If, after reading this start-up information, you have further questions, please contact the: COLORADO BUSINESS ASSISTANCE CENTER 1625 Broadway, Suite 805 Denver, Colorado 80202 (303) 592-5920-Denver Metro or (800) 333-7798 -statewide www.state.co.us/gov_dir/oed/bac.html