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Where can I get federal and state tax identification numbers? Sole proprietorships without employees can use the proprietor's social security number as a business identification number. It may, however, be advantageous for a sole proprietorship to have an EIN number. Partnerships and corporations with or without employees, and sole proprietors with employees, must obtain an Employer Identification Number (EIN) (Form SS-4) from the IRS. The form can be obtained from the IRS at www.irs.gov or 800-392-6089. Partnerships and
corporations with or without employees, and sole proprietors with employees,
must register their business with the Department of Revenue. This can only be
done online by going to www.mass.gov and
registering as a new business. Further information can be obtained at
Massachusetts Department of Revenue's website at
www.mass.gov/dor.
What is a DBA Certificate and where do I get one? A business certificate is the registration of a business. It is commonly referred to as a "DBA" or "Doing Business As" certificate. Its purpose is primarily for consumer protection and public information. Essentially, it creates a public record of the name and address of the owner of a business. Massachusetts General Laws Chapter 110, §5 states that any person conducting business under any title or business name other than the real name of the person conducting the business must file a certificate. A person is defined as an individual, a partnership, or a corporation. Forms for filing are available in the town clerk’s office where the business is to be located.
How do I become a government supplier? Through the MSBDC Procurement Technical Assistance Center (PTAC), clients subscribe to a free bid-matching service, which informs them daily of federal, state and municipal bidding opportunities matching their specific product and service profiles. After identifying a specific bid, clients may draw on a wealth of technical assistance to prepare their proposals. If successful, PTAC provides assistance in post-award contract administration. Visit PTAC's website at www.msbdc.org/ptac.
What taxes are required for my business? Once you start your business, you will have to start paying certain taxes to both the federal government and the Commonwealth of Massachusetts. The specific taxes you are required to pay depend on your type of business. The Massachusetts Department of Revenue provides a comprehensive online guide, Guide to Employer Tax Obligations, and also offers small business workshops. Click here to view the guide.
How do I register my business name? An individual or entity may register the business name, trademark or service mark with the Massachusetts Secretary of State's Office. A form may be obtained by calling 617-727-2850. The completed form, along with the $50 filing fee, should be sent to the Secretary of State’s Office in Boston. Trademarks and service marks are renewable every ten years.
How do I find out if anyone else is using the name that I chose for my business? The Secretary of State’s office will do a name search for Massachusetts only. For further information, visit www.mass.gov/sec/cor or call 617-727-2850. You can also contact Paulina Borrego, Librarian for Research and Learning Services at the University of Massachusetts, at 413-545-7891 or pborrego@library.umass.edu.
A corporation is a separate legal entity that exists under the authority granted by state law. A corporation has substantially all of the legal rights of an individual and is responsible for its own debts .It must also file income tax returns and pay taxes on income it derives from its operations. Typically, the owners or shareholders of a corporation are protected from the liabilities of the business. However, when a corporation is small, creditors often require personal guarantees of the principal owners before extending credit. The legal protection afforded the owners of a corporation can far outweigh the additional expense of starting and administering a corporation. Is the business that I want to buy overpriced? In order to answer this question, you must get copies of the seller's tax records for the last three years, details of the sale and meet with an MSBDC business advisor as soon as possible. The business advisor can help you value the business and look at how the expenses may change under your management. How do I obtain health insurance? You may contact any of the following for more information on health insurance:
Will the MSBDC write my business plan for me? While the MSBDC will not write your business plan for you, we will provide the guidance needed to write the plan and can help fine-tune your plan.
What insurance should I carry for my business? An important aspect of your business is a well-planned insurance program. Types of insurance you should consider are:
Can you help me obtain small business grants? Unfortunately, for most companies in Massachusetts, there are no small business grants. That is, there are no grants available for start up costs, operating or other typical small business expenses for companies which are not “non-profit” or charitable organizations. Most grants are given by foundations or government agencies to provide money for charitable or social purposes and they are typically only given to organizations which have specific “non-profit” status [typically 501(c)(3)]. This automatically excludes the majority of businesses which are operated for a profit, regardless of race or gender. However, there are two exceptions for specific grants for which a small business could be eligible. The first is called an SBIR or Small Business Innovative Research grant. To qualify for this type of grant a small business needs to have a unique technology which an agency of the government has an interest in developing through advanced research. This program requires a company to have qualified academic researchers and industry experts on its staff. Additional information on SBIR can be found at www.sba.gov/sbir. The second type of grant is a Workforce Training Grant. This grant is available to existing small businesses that need to train their workforce to better perform their jobs. It is a 50/50 match between funds that the company puts up and funds that are available from the Commonwealth of Massachusetts. Additional information on Workforce Training grants can be found at www.detma.org/WorkforceHome.htm. There are other agencies that also offer grants. For Massachusetts grants, go to www.mass.gov and type 'grants' in the search field, then select the quick link for grants and funding. For non-profit organizations, grant information is available in the library section of the Associated Grant Makers' website at www.agmconnect.org. To learn about federal grants, go to the U.S. Small Business Administration's website at www.sba.gov/expanding/grants.html. The U.S. Small Business Administration (SBA) does not offer grants or free money to start or expand small businesses. Although there are some grants available, they generally are targeted towards specific groups, types of organizations or activities. SBA does offer a wide variety of loan programs. Visit www.sba.gov/financing for more information. Financing for a small business can often be a confusing and difficult process. The MSBDC can provide valuable information that will dispel many of the myths about free money and grants, and help individuals position themselves to start or grow a successful small business in Massachusetts. For additional information on the process of financing, contact the nearest MSBDC office to schedule an appointment.
Does my credit score affect my possibilities of obtaining a business loan? Your personal
balance sheet affects all aspects of your business endeavors. The purpose of
having a credit score is to determine your risk of repaying debt. Thus if you
have a low credit score it will be more difficult to obtain financing, but not
impossible. How do I certify my business as minority owned? If you are interested in certifying your business as minority owned, you can contact the State Office of Minority and Women Business Assistance (SOMWBA) at www.somwba.state.ma.us or call 617-973-8692 for more information on the process.
Does the MSBDC provide bilingual services? Yes, most of our staff speaks Spanish and we also offer several workshops in Spanish co-sponsored by the Jamaica Plain Neighborhood Development Corporation. Please visit the Español section of our website and training calendar for more information. Are MSBDC services only available to minority clients? We welcome the
opportunity to leverage resources for minority entrepreneurs, however all of our
services are open to the general public.
Does the MSBDC provide legal or accounting assistance? Unfortunately the MSBDC does not offer any legal or accounting assistance. We can provide you with some general concepts and guidance. However we work with many different resources, which we can refer you to. Please see the business resources section of our website for a listing of legal and accounting resources.
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