Getting Started as a Small Business in Connecticut: What You Need to Do
There are many pluses to starting your own business, but the biggest hurdle to that point is getting it off the ground.
Going into business is more than having an idea and a product. You need to flesh it out, apply for funding, and fill out the necessary documents. If you’re in Connecticut, use these tips as a checklist:
- Make a Business Plan
Your idea needs a foundation, so you need to come up with a business plan. This document, often necessary to apply for loans and get funding from venture capitalists, should cover:
- Materials and costs
- How you define your business
- Your products or services
- Short- and long-term goals
- Operating procedures
- How you plan to market yourself
- Come Up With an Identity
There are two reasons for this: One, giving your business a brand, and second, to protect your personal assets from business debt and liabilities. As well, certain setups come with their own tax advantages and lead to better credibility amongst your customers and business peers.
Companies can either incorporate themselves or file to be an LLC. For doing this, the Connecticut Secretary of State has the necessary forms, while the Connecticut Commerce Recording Division lets you search through and file a trade name.
- Tax Requirements
In the beginning, you’ll need to contact the state’s taxation department for a federal tax identification number, also known as an employer identification number (EIN).
Then, make sure you have all the forms ready for sales and use tax, withholding and business entity taxes, and anything else that applies to your industry or field.
- Insurance
Even small businesses need insurance. Having a policy, such as a BOP, helps meet government and industry requirements. At a basic level, your company should be insured for:
- Unemployment
- Workers’ Compensation
- OSHA regulations
Later, as you take on more employees, consider adding health care coverage, liability, and auto insurance. Work with Ion Insurance to find out what works for your small business.
- Get Your Financials in Order
Your business finances should be separate from personal accounts. Make sure your company has a business bank account and line of credit.
- Regulations
Depending upon where you set up shop, you’ll need to follow state and local laws concerning:
- Zoning requirements
- Safety
- Licenses and permits
In Connecticut, work with the state’s Licensing Information Center to learn more.
Are you starting up a company and need business insurance? To get an introduction or start a policy, give us a call today at 203.439.2815.
