- What is the difference between a Sole Proprietorship, a Corporation, a Partnership and an LLC; which is best?
- What will a banker want to see in order to get a business loan?
- How much collateral is required for a business loan?
- How do I get an SBA loan?
- How can I determine the value of a business?
- How do I get a grant to start a business?
- What is the difference between QuickBooks Basic and QuickBooks Pro?
- How do I determine which version of QuickBooks is right for my business?
- Can you help me set up QuickBooks for my company?
- How long do I have to keep business records?
- Where do I get a State Tax form that I need?
- Where do I get a Federal tax form that I need?
- Where do I get information about employee issues?
- Where do I get information on the Quality Jobs program?
- How do I establish a business in Oklahoma?
- How do a register a DBA?
- How do I get a patent for my invention?
- Where can I learn about Quality and continuous business improvement?
- What assistance is available for businesses located in rural areas?
- Where can I get information on bidding on government contracts?
- Do I need a license to open a business in Oklahoma?
- I'm starting a construction company. Do I need a license?
- Where do I get a sales tax permit?
- Where do I get a reseller permit?
- Do I need to register my business trade name with anyone?
- How do I get certified as a woman-owned business?
- I need assistance in exporting. Does the Department of Commerce provide help in this area?
What is the difference between a Sole Proprietorship, a Corporation, a Partnership and an LLC; which is best?
The primary considerations when selecting a business structure are taxation and liability exposure.
A Sole Proprietorship is one person engaging in a business activity. The owner has unlimited responsibility for taxes and other liabilities associated with the business. In essence, the individual is the business and the business is the individual owner.
A Partnership is two or more individuals engaged in a business activity. Several variations of partnerships exist; however, each partner bears at least a portion of the tax and other liability exposure.
Corporations operate as independent entities. In regular “C” corporations, the owners are shielded from taxes and most other liabilities. In Sub-chapter S (“S”) corporations, tax liability flows to each owner on a pro rata basis but the owners are shielded from most other liability exposure.
An LLC (Limited Liability Company) is a hybrid structure of a partnership and a corporation.
None of these structures is necessarily better or best compared to the others. Seek the advice of an experienced business attorney and CPA to help select the best structure for your particular business.
http://www.tax.ok.gov/structures.html
What will a banker want to see in order to get a business loan?
Your bank will want all information that helps justify lending to your business. Besides the information that tells how you will use the loan proceeds, the bank will want the answers to these four questions.
- What is the collateral for the loan and its value?
As a general rule, you will need securable collateral equaling 1.3 times the loan amount.
- What is the capability and character of the company’s owners and management?
You need to demonstrate that the owners and key managers are good citizens and have the knowledge and skills to successfully to achieve the business objective.
- Does the company have the capacity to repay the loan?
A cash flow projection that includes debt service will answer this question.
- How much equity is the company committing to the project?
The bank wants to the company to share the risk by committing its own capital to the business project.
Your bank also wants to learn about your company’s products, services and how it successfully competes in the marketplace.
In addition, the bank will want to see the company’s historical and projected financial statements and tax returns for the last three years. The bank will also ask for personal financial information and tax returns from any person owning 20% or more of the company.
How much collateral is required for a business loan?
It varies based upon the elements of the loan. Lenders need a margin of safety so usually the lender requires collateral with a value higher than the amount of the loan. As a broad general rule, collateral should exceed the loan amount by 30%.
The term “SBA loan” usually refers to the SBA’s loan guarantee program. The SBA makes very few loans directly to businesses. Many banks that make business loans can help your company secure an SBA guarantee. There are several SBA programs. Visit the SBA website, your banker and Central Tech’s Business Development.
more information: www.sba.gov/financing/index.html
How can I determine the value of a business?
We offer a service that determines a value range of a company based upon historical financial data. There are also private sector business appraisers.
How do I get a grant to start a business?
Grant programs come and go but grants for starting a business are nonexistent; at least we do not know of a credible source. The Federal government does grant money to foster small businesses but generally these grants are awarded to economic development organizations to establish loan programs. However, you may find assistance to help your company with research and development; especially in areas that involve innovative technology. Also, Oklahoma’s Indian Tribes, at times, provide assistance to their tribal members.
For more information on this topic:
www.osbdc.org/loans_and_grants.htm
www.ocast.state.ok.us/Programs/tabid/54/Default.aspx
What is the difference between QuickBooks Basic and QuickBooks Pro?
The Basic version of QuickBooks is no longer produced. QuickBooks Pro is now the beginning full accounting version. The new Simple Start version handles most money handling chores but does not provide the breadth of common accounting functions and reports included in Pro and higher versions of QuickBooks.
For more information on this topic: quickbooks.intuit.com
How do I determine which version of QuickBooks is right for my business?
QuickBooks comes in three standard versions: Simple Start, Pro and Premier. Pro contains more features than Simple Start and Premier adds more features. Additionally, specialized versions are available for accountants, manufacturers and wholesalers, service professionals, non-profits and retailers. However, the Pro version will serve the needs of most companies very well. The QuickBooks website includes a tool to help select the version for your company.
For more information on this topic: quickbooks.intuit.com
Can you help me set up QuickBooks for my company?
Yes, we provide assistance to help you set up and use QuickBooks in your business. In addition, Central Tech offers evening classes that teach you how to use QuickBooks.
How long do I have to keep business records?
It depends upon the type of record. In general, you should retain business records for as long as you may need them; especially related to supporting your tax returns. The IRS website has good information about retaining records.
For more information on this topic: www.irs.gov/businesses/small/article/0,,id=98575,00.html
Where do I get a State Tax form that I need?
Most forms may be downloaded from the Oklahoma Tax Commission website. This website also provides the addresses and contact information of area offices located in Oklahoma City and Tulsa. Some forms may be obtained from a public library.
For more information on this topic: www.oktax.state.ok.us
Where do I get a Federal tax form that I need?
The Internal Revenue Service website provides access to both forms and related publications including instructions.
For more information on this topic: www.irs.gov
Where do I get information about employee issues?
Information about employment and employee issues comes from several sources including the U.S. Department of Labor, Oklahoma Department of Labor, Internal Revenue Service, Oklahoma Tax Commission and the Oklahoma Employment Security Commission.
For more information on this topic:
www.irs.gov
www.oktax.state.ok.us
www.dol.gov
www.okdol.state.ok.us
www.oesc.state.ok.us
Where do I get information on the Quality Jobs program?
Question is a hot link to the site below
www.okcommerce.gov/index.php?option=content&task=view&id=299&Itemid=380
How do I establish a business in Oklahoma?
Start by getting a Business Registration Packet from the Oklahoma Tax Commission. You may also find it useful to visit the IRS and Oklahoma Secretary of State websites.
For more information on this topic
Call this Business Registration Packet www.tax.ok.gov/btforms.html
www.irs.gov
www.sos.state.ok.us>
How do a register a DBA?
You need to complete a Trade Name Report to establish a name other than the legal name of the business entity. This report form is available online from the Secretary of State.
Call this Trade Name Report: www.sos.state.ok.us/forms/FORMS.HTM#Additional%20Forms
How do I get a patent for my invention?
Contact the Inventor’s Assistance Service at Oklahoma State University to learn and access affordable assistance for your invention.
Call this Inventor’s Assistance Service: www.ias.okstate.edu
Where can I learn about Quality and continuous business improvement?
Several terms describe this topic including performance excellence. The Malcolm Baldrige Award program and the Oklahoma Quality Award Foundation are dedicated to helping organizations improve performance.
For more information on this topic:
Call this Oklahoma Quality: www.oklahomaquality.com
Call this Baldridge National Quality: www.quality.nist.gov/
What assistance is available for businesses located in rural areas?
Obviously, we believe you should contact us for assistance. The Oklahoma Department of Commerce also provides a good overview of rural development.
Email us link alt@ctechok.org
ODOC link www.okcommerce.gov/
Where can I get information on bidding on government contracts?
The Oklahoma Bid Assistance Network (OBAN) can help you understand and jump the hurdles to doing business with government agencies. For Creek County and the surrounding area, contact Mr. Carter Merkle at the State Department of CareerTech.
For more information on this topic
www.okbid.org
Do I need a license to open a business in Oklahoma?
There is no general license to own and operate a business in Oklahoma. Many businesses, business owners and/or employees, such as beauty salons and restaurants, require specific licenses and permits to operate in the state. Using the beauty salon example, the business does not require a license, but the beauty operators do need a license. You may also need to register your business with the Secretary of State or Oklahoma Tax Commission
To find out what licenses, permits, and registrations pertain to your business, select your specific business type from the menu in our Business Licensing System. This online tool provides one-stop information for license and permit requirements for the state of Oklahoma. After selecting your business type from the list, complete the short form that obtains more specific information about your particular business. After submitting the form, you will see a list of the required permits and licenses for your type of business and links, where available, to forms or additional resources.
I'm starting a construction company. Do I need a license?
This business activity is considered in the general category of a General Contractor, for which there is no specific state license. Out-of-state contractors must contact the Oklahoma Tax Commission at 405-521-3279 to register and pay a bond (if working on commercial properties). They must also contact the county clerk where the work is located and register the starting and ending dates for the project.
Where do I get a sales tax permit?
Through the Oklahoma Tax Commission, 405-521-3160.
Where do I get a reseller permit?
A sales tax permit is the license under which a retail business owner may purchase goods for resale and charge sales tax from the sale. This may be obtained from the Oklahoma Tax Commission (OTC) by completing an Application for Sales Tax Permit. The application is available for download online in the OTC's Oklahoma Business Registration Packet A. If you mail your registration, you can expect about a 60-day turnaround to receive your permit. However, the OTC has four one-stop shop locations strategically located throughout the state where you can often get same-day or same-week turnaround.
Do I need to register my business trade name with anyone?
It is not required to register a trade name. However, you may want to check the Oklahoma Secretary of State website Business Services section to determine name availability. Once you determine the name you want is available, you can register the name with the State using the Trade Name Report to protect the name of your business.
How do I get certified as a minority-owned business?
There are several organizations that certify minority-owned businesses; each is different in its emphasis, depending on your target market. For instance, there are certification programs if you want to compete only in the private sector or for federal contracts. Certification as a minority-owned business can be an asset in competing for contracts and in procurement needs. For more information, visit our Minority-Owned Business page.
How do I get certified as a woman-owned business?
Like minority business owners, women-owned businesses have several advantages when competing for contracting opportunities in Oklahoma. To qualify for Oklahoma Department of Commerce certification as a woman-owned business, a business must be at least 51 percent owned and controlled on a day-to-day basis by one or more women.
To apply for certification, download and complete the Women-owned Business Certification Application.
Mail the completed document to:Oklahoma Department of Commerce
Woman-owned Business Certification Program
P.O. Box 26980
Oklahoma City, OK 73126-0980
For more information on the certification program and additional resources, visit the Women-Owned Business page.
I need assistance in exporting. Does the Department of Commerce provide help in this area?
Yes. Commerce's Export Solutions team provides comprehensive assistance to businesses wishing to develop their global markets. Export Solutions, working closely with the U.S. Department of Commerce, offers workshops, information and one-to-one consulting to help businesses with exporting needs. This group provides assistance in customs, foreign permits, financing, and market analysis as well as hosts foreign trade missions and sponsors global catalog trade shows. To learn more, visit the Export Assistance section of our website or contact the Export Solutions team at 800-879-6552.
