Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 21

State and Federal Tax Registration More information on state and federal tax registrations and permits is covered in the section “Licenses, Permits and Other Regulations” beginning on page 26. For more information on how to access services for doing business in the state Michigan, www.michiganbusiness.org/start-up/business-assistance/#guidance . Employer Identification Number (EIN) – Taxpayer Identification Number An EIN identifies a business for federal and state tax purposes. Generally, an EIN is required by the IRS if: 1) The business will have employees; and/or 2) the business operates as a corporation or partnership. See “Business Taxes” beginning on page 29 for more details concerning an EIN. Zoning and Local Requirements It is important for startup and expanding businesses to make sure that the planned location or occupied facility is in compliance with all the local laws and regulations. Although Michigan does not have a generic business license, check with your local governmental units (cities, townships, villages, etc.) as they may require businesses to be licensed. See page 27 for more details. Employee Considerations If employees are hired, there are responsibilities at both the state and federal government levels. For more details, see “Hiring Employees” beginning on page 34. Intellectual Property (IP) – Patent, Trademark, Service Mark, Copyright A patent is a grant of an enforceable property right to the inventor, issued by the United States Patent and Trademark Office. A trademark is the “brand name” by which products are identified by a particular manufacturer or distributor. A trademark is a word, phrase, symbol or device, or any combination other than a tr ade name adopted and used to identify products and to distinguish them from similar products made or sold by others. A service mark is similar to a trademark and is used to identify and distinguish between services sold or advertised by a person from similar services of others. A copyright enables its owner to exclude others from reproducing certain kinds of works. See page 27for more details. Business Insurance Contact an insurance agent to determine the types of insurance the business should purchase. Shop around. Insurance rates and types of coverage vary greatly among insurance carriers. For more details, see “Insurance” beginning on page 61. 6. Obtain Financing (if applicable) If traditional lending is your financing path, begin visits to lenders just as soon as the business plan is completed before a site lease or purchase agreement is signed. Your MI-SBDC office will provide information on lenders in your area. For more information on financing, see the section “Financing a Business,” page 40. 7. START your Business! Congratulations! Your planning, persistence and determination have paid off. Now the journey and real hard work begins. Don’t hesitate to contact your nearest MI-SBDC office for ongoing assistance. 19