Author: lchitwood

Financing Your Business

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Free Funds—Everyone wants to know where they can get “free” money. Despite ads indicating there are “giveaways” from the government, the possibility of getting “free” money is slim. Beware of offers to the contrary. If any funds are available, you can find them in the legitimate grant resources below:
www.grants.gov
www.mdp.state.md.us/ourwork/redbook
Bootstrapping—Most small business people finance their business with their own savings, credit cards, home equity loans, or money borrowed from friends and family.
Banks—Local banks can work with you to secure a commercial loan, however, they will want to see evidence of the 7 C’s of Credit: Credit Score, Collateral, Cash Flow, Conditions, Competence, Character and Capital. Before approaching the bank, you will want to have a solid business plan.
SBA—The Small Business Administration provides loan guarantees to banks to encourage funding of small businesses. The SBA does not give out loans; rather, they lend support to your loan request from a bank. The SBA’s website has many excellent, free online courses that can help you get your business started. Visit www.sba.gov for more information.
For more info on the SBA and SBA loans, contact:
SBDC (Cecil County) - 443-910-6715
SBA (Maryland) - 410-962-4392
SBA (US) - 1-800-827-5722
SCORE Delaware - 302-573-6552
Maryland Department of Commerce - This state department has some finance programs and offers free business assistance.
commerce.maryland.gov/start/resources
Cecil County Office of Economic Development - Features a revolving loan fund that some businesses may qualify for to purchase land, buildings and equipment. 410-996-6292
www.cecilbusiness.org
Angels and Venture Capitalists - These are wealthy, private investors willing to fund new business ventures. Some function individually, but most work through a formal network of investors. Most are also looking to invest in businesses with the potential for significant profits, usually high-tech or innovation companies. Two local angel groups are:
Mid Atlantic Angel Group Fund www.magfund.com

Hiring Employees

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If you will be hiring employees, read and print the free booklet: Employer’s Quick Reference Guide. This guide gives a complete overview of the steps you need to take in order to hire employees legally. The booklet is located at the following website:
http://dllr.state.md.us/employment/empguide/empguide.pdf
The following is a quick outline of some of the steps necessary when hiring employees. Please read the guide above for
more complete information.
Taxes: Employers (even those self-employed) must file state and federal withholding taxes for themselves and for their employees. If you are self-employed, your taxes need to be paid with a Schedule SE and the 1040 income tax form. If you have employees, you will need additional forms. Contact the following:
Internal Revenue Service - 800-829-1040 www.irs.gov
Maryland Taxes - 800-492-1751
http://taxes.marylandtaxes.com/ Business_Taxes
Hiring: Maryland law requires employers to register new hires, re-hires and temporary employees within 20 days. Call 888-634-4737 or register via their website at:
http://newhire-reporting.com/md-newhire/default.aspx
Unemployment Insurance: Contact the following to determine if you are liable for Maryland unemployment insurance and worker’s compensation taxes.
Maryland Unemployment Insurance Employers’ Line
800-492-5524 ext. 1211

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Your Intellectual Property

To protect your intellectual property (names, symbols, formulas, songs, etc.), you must register them with federal agencies.
Patents and Trademarks: A patent protects the inventor by conferring the right “...to exclude others from making, using, offering for sale, or selling” the registered invention within the US. A trademark is any word, name, symbol, device, or combination thereof used to identify and distinguish the goods of one manufacturer from another. Info and an online application can be found at the United States Patent and Trade Office:
800-786-9199 www.uspto.gov
Copyright: A copyright protects original works of authorship fixed in a tangible medium of expression, such as writing, music, photos and more. Contact the following:
202-707-3000 www.copyright.gov

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Cecil Business Resource Partners

The following organizations are available for free, knowledgeable, confidential consultations to help you get started in business in Cecil County. These organizations work as partners in the Cecil Business Resource Partners, a group formed to support small business development in Cecil County.
Cecil County Public Library The Small Business Information Center Elkton Central Library 410-996-5600 ext. 128 www.cecil.ebranch.info/small-business/
Small Business Development Center
http://marylandsbdc.org/northern 443-373-3377
Office of Economic Development www.cecilbusiness.org 410-996-6292
Susquehanna Workforce Network www.swnetwork.org 410-996-0550
Cecil College Business Training Resource Center www.cecil.edu/business 410-287-6060 ext. 605
Business & Education Partnership Advisory Council http://www.ccps.org/domain/23
410-996-5474
Cecil County Chamber of Commerce www.cecilchamber.com 410-392-3833

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Additional Local Resources

SCORE www.scoredelaware.org 302-573-6552
Elkton Alliance www.elktonalliance.org 410-398-5076
Additionally, each town in the county has a chamber of commerce or other business organization that focuses on their community’s economic success. These organizations can be excellent resources in starting or developing your business.
Start a Business:
https://egov.maryland.gov/businessexpress
Useful Business Links:
www.business.usa.gov
www.sba.gov
www.irs.gov/businesses/small/index.html
www.census.gov
http://www.sec.gov/info/smallbus.shtml
www.toolkit.cch.com

08/16

The Small Business Information Center

Keys to Starting
a Business in
Cecil County

Developing a Business Concept

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Thinking about starting your own business?
Wondering if you have what it takes?
Trying to develop your business idea?
What’s the best place to start when you’re considering going into business for yourself?
The Cecil County Public Library’s Small Business Information Center provides free information and assistance with the process of starting a small business. The Cecil County Public Library is unique in providing this no cost, focused service for potential and existing small business owners. In addition to access to up-to-date business info, the SBIC also works with a team of local business organizations to get you the help you need. Make an appointment with the SBIC to brainstorm business concepts, discuss your plans, look for specific business information, work on marketing, and more. The SBIC is here to help you start and stay in business!

The Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, MD 21921
410-996-5600 ext. 128
sbic@ccplnet.org
www.cecil.ebranch.info

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Forming a Legal Business Structure

Business Licenses and More

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Contacting Regulatory Agencies

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Writing Your Business Plan

8

Before you register as a business, you must determine your legal ownership structure and file with the state. Differences, benefits and costs of each can be viewed at:
www.bizfilings.com/toolkit
The legal structures are:
Sole Proprietorships or Partnerships—no legal filing required for entity to exist, other than a business permit.
Limited Partnership, Limited Liability Company, Limited Liability Partnerships, or Corporation—must file with the Maryland State Dept. of Assessment and Taxation.
Information on the advantages and disadvantages of each can be found in books at the library, and in an online state publication: Guide to Legal Aspects of Doing Business in Maryland, located at:
https://www.oag.state.md.us/legalaspects.pdf

Registering a Business Name

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Your business needs to register with the State of Maryland. An online database lets you search to see if your name is available or actively being used. The business name database is under the Maryland Department of Assessments and Taxation at:
www.dat.state.md.us
Click on “Business Data Search,” then “Business Entity Information.” Once you’ve determined an available business name and chosen a legal structure, you can register online at the above web address or call: 410-767-1340.

Getting an EIN from the IRS

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An EIN (Employer Identification Number), known as a Federal Tax ID Number, is obtained from the IRS. Look under “businesses” at www.irs.gov to determine if you will need an EIN.
If your business requires one, you can download the form at:
www.irs.gov/pub/irs-pdf/fss4.pdf
You must know what your legal business structure will be before you apply for an EIN. You can apply online, by phone, or through the mail: FAX: 631-447-8960
TEL: 800-829-4933
MAIL: EIN, P.O. Box 9003, Holtsville, NY 11742

Business licenses, certifications and permits can be confusing because requirements vary from business to business. The best plan is to contact the following agencies and explain what kind of business you are planning. They will help you to determine what you need to do to be “legal”.
County Clerk of the Circuit Court—410-996-5380
The Dept. of Permits and Inspections—410-996-5235
The Cecil County Health Department—410-996-5550
Information on business licenses in Cecil County:
http://www.mdcourts.gov/clerks/cecil/business.html
Apply online for a Maryland business license:
https://jportal.mdcourts.gov/license/index_disclaimer.jsp
Many businesses also need to register with the state of Maryland. You can do so by phone at 888-218-5925 or online:
http://www.dllr.state.md.us/license

Maryland Business Taxes

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Information about business taxes in Maryland can be found at the following website:
http://taxes.marylandtaxes.com/business_taxes
You must register with the state for paying your business taxes. If you use the Maryland Combined Registration Online Application at the website below, it will include your business accounts for income tax withholding, sales and use tax, and unemployment insurance. Go to:
https://interactive.marylandtaxes.com/webapps/comptrollercra/entrance.asp
Other tax and business application forms can be found at:
http://dat.maryland.gov/Pages/sdatforms.aspx
The local tax office in Cecil County is at:
103 Chesapeake Blvd., Elkton, MD 21921; 410-996-0580

Zoning and Building:
Make sure your business site is zoned for the kind of business activity you intend for the property.
Cecil County Dept. of Planning and Zoning
200 Chesapeake Blvd., Suite 2300 Elkton, MD 21921 410- 996-5220
Environmental:
Determine if there are any regulations (air pollution, water discharge, waste, etc.) protecting the environment that you need to correct on your property, or that you need to properly prepare for in your business production.
Maryland Dept. of the Environment
1800 Washington Blvd., Baltimore, MD 21230 410-537-3000
www.mde.state.md.us
Health:
Businesses involving preparing food for sale or providing health services for people require special health regulations and inspections.
Cecil County Health Dept.
401 Bow Street, Elkton MD 21921
410- 996-5550
www.cecilcountyhealth.org
Safety:
Maryland Occupational Safety & Health
10946 Golden West. Dr., Suite 160 Hunt Valley, MD 21031 410-527-4499
www.dllr.state.md.us/labor/mosh
Federal OSHA
200 Constitution Ave.
Washington DC 20210
800-321-6742
www.osha.gov

A business plan is the foundation to making your business work. Lenders, potential investors, and other business professionals will want to see your business plan, especially if you are trying to get a loan. Even if you aren’t seeking financing, a business plan is your blueprint for success. It’s hard work to write a business plan, but well worth the effort as statistics show that a business plan can make a significant difference between a business thriving or dying.
A typical business plan is about 20 pages long and details the following topics: Executive Summary; Business Description; Management; Market Analysis and Strategy; Customers and Competitors; Operations; and Financial Analysis.
The library has many books, workshops, outlines, and individual consultations available to help you to prepare your business plan. An online guide can be found at:
https://www.score.org/resource/business-planning-financial-statements-template-gallery
Sample Business Plans—we also carry sample business plans in our reference collection in the Small Business Information Center office and online at our website:
http://www.cecil.ebranch.info/small-business/

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Consider getting coverage for property damage, liability and business interruptions
Investigate specialty insurance for your particular business
Contact the state insurance agency about any problems
Maryland Insurance Administration
525 St. Paul Place, Baltimore, MD, 21202
800-492-6116
www.mdinsurance.state.md.us

The Small Business Information Center at the Cecil County Public Library
301 Newark Ave., Elkton, MD 21921 • 410-996-5600 ext. 128
sbic@ccplnet.org • www.cecil.ebranch.info

Insurance for Your Business