Planning your Start-up

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1. Determine the Feasibility of Your Business Idea.

Work with the staff at the SBDC to learn how to test your ideas before investing.

2. Prepare a Business Plan (with Loan Proposal if required).

Your SBDC counselor can assist you through the planning process. Study the example and sections of a plan on this site. Business planning means knowing your industry and your products, your market, your customers and competition, how you will operate, and what it will cost.

3. Assemble a Management Team.

Use the knowledge and experience of your Banker, Accountant/Bookkeeper, Attorney, Insurance Agent, and SBDC Counselor to build a strong foundation for your business.

4. Arrange Financing.

Have realistic expectations, know lenders’ requirements, and present your request in a professional manner. Be prepared with realistic cash flow projections. Be prepared to contribute a portion of the funding on your own.

5. Select a Location.

This is a preliminary step for information only; be sure you are going to be able to proceed with the business before committing to a lease or purchase. Verify zoning requirements; do not assume based on the existence of past businesses at the site. Inquire about restrictions or permits needed for improvements or renovations. Source: Your City or County Zoning Office and/or Office of Community Development.

6. Choose a Business Name.

Research names already in use in your geographic area or industry. Sources: Search the internet and local directories; State Corporation Commission for names registered in Virginia.

7. Choose a Legal Structure.

There is no one “best” structure to use. Consult with an attorney, an accountant, and/or business counselor to consider factors for your decision. If needed, register with the State Corporation Commission.

8. Determine Insurance Needs.

Consider costs for property, liability, and other protections. Virginia law requires every employer who regularly employs three or more full-time or part-time employees to purchase and maintain workers’ compensation insurance. Source: Virginia Workers' Compensation Commission.

9. Obtain a Federal Employer Identification Number (EIN).

The EIN identifies your business to the federal government. All employers, corporations, partnerships, and limited liability companies are required to obtain an EIN. We recommend sole proprietors obtain one also; otherwise the owner's social security number will be used. Source: Internal Revenue Service, Form SS-4.

10. Determine your Virginia State Tax Requirements.

You must register with the Virginia Department of Taxation if you will have employees, sell products (and therefore collect sales tax), or engage in other taxable businesses. Source: Virginia Department of Taxation, Form R-1.

11. Register with the Virginia Employment Commission, if needed.

If you will have employees, determine your hiring, pay, and unemployment tax obligations. Source: Virginia Employment Commission.

12. Obtain Professional or Occupational Licenses, if needed.

Source: Virginia Department of Professional and Occupational Regulation

13. Register Your Assumed or Fictitious Business Name.

If your business name does not identify the owner, you must register the trade name with the Clerk of the Circuit Court in the counties/cities where business is being conducted.

14. Apply for Local Licenses; Inquire about Local Taxes.

Some cities/counties require a business license to operate. Contact your local Commissioner of the Revenue or Town Administrator to inquire about their local tax or licensing rules.

15. Open a Business Checking Account.

Keep your business accounts separate from your personal finances, by using a separate checking or credit card for your business. Consult your banker for options.

Please note: This list is not all-inclusive. Every business may have unique registration or reporting requirements depending on the industry, type of business entity, location, employment issues, and other.  Do your homework by reading and studying the websites and booklets prepared for your use by your federal, state, and local government offices. Consult your business accountant, attorney, or SBDC counselor if in doubt.