FBO.gov – FedBizOpps is the single government point-of-entry (GPE) for federal contracting opportunities over $25,000. This is a one-stop virtual marketplace to post, search, retrieve and monitor opportunities solicited by the federal contracting community. This is free and no registration is required.

GSA Services – One-stop resource for all businesses with GSA contracts. Includes links to contracting assistance resources, training programs, small business assistance, and vendor support. Also check out the GSA Vendor Support Center.

Pay.gov – Pay.gov is a secure government-wide collection portal, developed to meet the U.S. Treasury’s commitment to process collections electronically using internet technologies. It offers a suite of online services that Federal agencies can use to meet their responsibilities towards the public. Pay.gov can be used to make secure electronic payments to Federal Government Agencies. Payments can be made directly from your bank account or by credit/debit card.

Business.gov – Learn how to become a federal contractor, find business opportunities, and the rules and regulations that federal contractors need to follow.

More Posts on Getting Government Contracts

How Small Businesses Can Get Government Contracts Part I: Getting Started

How Small Businesses Can Get Government Contracts Part II: Getting Government Business

Tap into the Biggest Spender :: Doing Business with the Federal Government

Finding Work in Your Own Back Yard: Doing Business with State and Local Government

Whether you are a small or home business owner or an employee of a small business, Health Savings Accounts (HSAs) are an important part of the portfolio of health care options that are available.

Background for Small Business Owners

HSAs were created in Medicare legislation signed into law by President Bush on December 8, 2003. HSA plans are inexpensive health insurance plans that don’t pay for deductibles but will generally cover you after that. HSA plans are available to help you pay for the expenses your plan does not cover. Small business owners should check with their insurance carriers to tell you in writing whether your policy is HSA-eligible. There is a checklist for small business owners available from the SBA to give you more information.

HSAs – What are they?

A Health Savings Account (HSA) is a tax preferred account owned by an individual used to pay for current and future medical expenses. They are funded by tax deductible individual contributions and employers can also contribute to employees’ HSAs. Here’s an Online Briefing on HSAs that provides self-paced training.

Qualifying for HSAs

To be eligible and qualify for an HSA, you must meet the following requirements:

• You need to be covered by an HSA eligible health plan with a deductible of at least $1,100 for individual coverage or $2,200 family coverage for 2008, and $1,150 and $2,300 for 2009.
• You cannot have any other health coverage, except what is permitted under Other Health Coverage
• You cannot be enrolled in Medicare
• You cannot be claimed as a dependent on someone else’s tax return

For additional information IRS Publication 969 details qualifications and more for health savings accounts and other tax-favored health plans. Also check out this fact sheet.

Resources

HSA Finder – Independent information source for Health Savings Accounts

US Dept of Treasury

HSA Insider – Q&A on HSAs

Business.gov – Workplace Health information

This search tool is the first of its kind to provide access to federal and state programs in a single, easy-to-use tool.  This tool provides one website to find financing programs that business owners can apply for. So many business owners are looking for financial information – this tool is really easy to use.

The loans and grants tool is simple. A business owner completes a survey of 15 questions and is presented with a list of loans, grants and venture capital programs.  The questions are simple, including some the following – no complex information required to use this:

• A dropdown with industry selection
• Nonprofit vs. for profit businesses
• Veteran status
• Minority owned businesses
• Location

After answering these questions, a list is generated of available loans and grants, which is being expanded continuously. This list includes the program title, which links the user to the website describing the program; the sponsoring agency; and a brief description of the program. Results are segmented by the type of financial assistance (loan, grant, venture capital).

Another very cool tool from the government is a permits tool called “Permit Me”. You can enter your business type and location and this tool generates a list of licenses and permits that you need in your locality for your specific business. The most common types of businesses are included but if you have a unique requirement, definitely send these folks a note and they will work to add other businesses and new content.

Pre-employment background checks are absolutely essential. Sometimes, however, it may be hard to know just how deep you can dig. While it’s perfectly acceptable to perform a Google^TM search, you cannot (in most cases) make prospective employees take a lie-detector test.

For a comprehensive look at the dos and don’ts of pre-employment background checks, go to the SBA’s Business.gov site where you’ll find two important pages: One page that provides a list of resources on employment and labor laws, and one page that provides detailed information on pre-employment background checks.

I’ve mapped out below some of the basic information included on the Business.gov pages, as well as additional places you can turn – such as the FBI and the FTC – for more information on what you can and cannot ask candidates to do, and what you can and cannot do in your hiring process.

Public Information

Every company should perform the basics – call references, check past employment, and do an Internet search. I am continually amazed at how many companies do not do this basic research. It is well worth your time. Don’t skip this, no matter what.

There is also a good amount of public information available (about all of us). For example, bankruptcies and worker’s compensation claims are a matter of public record. Gather all the information you can – there is no harm or foul here. What you do with this information is a separate issue.

Digging Deeper

Beyond public information, there are several things about which you can legally ask the prospective employee. For example, under the Fair Credit Reporting Act (FCRA) you may ask an employee for written permission to access his/her credit report. Once again – what you do with that information is a completely separate issue, but you’re legally allowed to ask. The Federal Trade Commission provides a page on its website with detailed information on credit reports – your rights and your prospective employee’s rights. It’s worth reading.

Does your prospective employee have a criminal record? This is, as you might imagine, a touchy subject. The FBI website provides a page of information dedicated to answering that question, and giving specific advice and instructions on requesting a criminal history record. In fact, the FBI has a complete Freedom Of Information Act (FOIA) website here: http://foia.fbi.gov.

More Research, Less Risk

The reality is, every new employee you hire presents a risk to your organization. Perhaps the prospective employee will turn out to be your best asset; he/she may also turn out to be your greatest liability. There’s a lot of information available to you. Do your research. The deeper you legally dig, the more you can reduce your risk – and sleep better at night.

The need for financing is a critical and perennial concern for the owners of small businesses. Many government resources, including guides, exist for small businesses. Many of these tools explain how to shop for and obtain credit, how to maintain a good credit rating, how to dispute unfair credit transactions, and how to resolve billing errors. The Federal Reserve provides a good guide.

There are also free government resources for obtaining loans. Here are some types of loans:

• Short-term loans are usually for less than one year. They can provide interim working capital for a business temporarily in need of cash and are repaid in a lump sum when inventory or accounts receivable are converted into cash.
• Intermediate-term loans are often used for a business start-up, the purchase of new equipment, expansion, or an increase in working capital. The maturity dates range from one to three years.
• Long-term loans generally are made for major capital improvements, acquiring fixed assets, or business start-ups. The term of the loan runs for periods of three to five years and is usually based in part on the life of the asset financed. Repayment is usually made in monthly or quarterly installments.
• A line of credit offers you the ability to borrow money repeatedly, up to your credit limit, without having to reapply. A line of credit is particularly important to businesses that experience seasonal fluctuations. The lender generally will perform a review once a year, at which time the borrower is asked to provide updated financial statements.

There’s a great new tool that allows you to search by state for loans available. This tool allows you to input your business type and provides direct links to view their requirements.

Tips for Applying for Credit

Applying for commercial credit can be tedious – a lot of documentation that you need to prepare for including how you will spend the money. The following are several items to include in a business proposal:

• Business description – An overview of your business, products, customers, etc.
• Personal profile – Your resume
• Business plan - Your strategy over the next few years and how you will generate revenue to pay the loan
• Personal finances - A list of your assets/liabilities and credit references

For more detailed information, go to the Federal Reserve Board.

The good news is, there is a loan program from the SBA – called SBA Express – that makes the process of procuring a government loan quick, attractive, and accessible to small business owners looking to start-up or expand quickly.

The SBA Express program offers small businesses the chance to get an SBA-backed loan of up to $350,000 to start-up or expand operations. The “express” piece refers to that fact that your loan can be turned around in 36 hours.

Here’s what you need to know about SBA Express:

• Facts and Figures – SBA Express is available to existing or start-up for-profit businesses. You can borrow up to $350,000 or up to $25,000 in an unsecured loan. The maximum loan term is seven years; interest rates vary but must not exceed SBA maximums.
• Using Your Loan – You can use the loan to expand your business, purchase an existing business or obtain working capital. You can also use the loan to refinance existing business debt that is not already structured with reasonable terms and conditions. These are just general guidelines; the SBA has more specific guidance here.
• Eligibility and Getting Started – To apply for an SBA loan, start by getting a list of SBA lenders in your area. You can do this by contacting your local SBA District Office.

Other Options for Small Businesses

If you don’t need the level of financing offered by SBA Express, you may want to consider SBA Microloans. With a microloan you can borrow up to $35,000. The average loan, however, is a lot lower and can sometimes be in the hundreds of dollars, making this loan ideal for home-based businesses looking to set-up or expand.

If you’re still having trouble pinpointing the right loan for your business, consider using the new SBA Business Gateway program’s grants and loans tool or explore other loan options offered by the U.S. government.

It’s All in the Planning

Like the old saying goes, “poor planning equals poor performance”, and it’s the same with loans. If you really want to succeed in securing the right loan for your business, you must have a rock solid business plan.

You can find lots of planning resources here to help you document your businesses missions and goals and, of course, explain how you are going to get there.

While the U.S. federal government remains the largest buyer in the world, state and local governments also make up a large percentage of their respective marketplaces, often employing more people and buying more products and services than any other entity.

If you operate a small business and want to take advantage of this lucrative and relatively recession-free marketplace, here are some pointers that can help you connect with state and local government opportunities:

Know Your Market and How it Operates

Market research can help you identify opportunities for your product or service and help build an understanding of the actual process of doing business with the government. Start with researching some specifics:

• Know Your Market – The state and local government market is fragmented and diverse. Research current funding, procurement and government plans. What contracts have been awarded in the past? What is the agency’s budgetary cycle and procurement code? Find this information on a state-by-state basis via this central portal.
• Know the Process – Take time to know and understand state budgetary processes and calendars. Network and plan on introducing your product or service three to nine months before the state drafts its upcoming fiscal year budget. Then be patient. It can take up to six months after funds are appropriated before an RFP hits the street!

More market research tips and tools that are specific to small businesses can be found here.

Get Connected to Small Business Resources

To help you take advantage of contracting opportunities, state governments offer a wide variety of avenues through which small businesses can compete for government contracts. You can find a list of state procurement agencies, and information on how to register as a contractor and bid on opportunities here.

The Small Business Administration (SBA) also offers a wealth of information on how your business can get ahead in local government contracting.

If you are a woman-owned or minority-owned small business, visit the SBA 8(a) minority-owned and woman-owned business website. By obtaining an 8(a) certification, your company will have a more solid disadvantaged business standing.

Market Your Company Aggressively

Once you have established that your company meets a state’s contractual and bidder’s list requirements, start identifying ways to build your profile and attracting prospects.

Marketing to the government is quite different than marketing to businesses or consumers and requires a dedicated approach.

Attend government conferences, join government associations, and develop messaging and collateral that “speaks to government” (how is your product going to help the agency serve its mission and its constituents?). Lastly look for repeatable successes – what opportunities can you replicate from state-to-state?

For more general marketing tips and advice checkout these online resources.

More Posts on Getting Government Contracts

How Small Businesses Can Get Government Contracts Part I: Getting Started

How Small Businesses Can Get Government Contracts Part II: Getting Government Business

Tap into the Biggest Spender :: Doing Business with the Federal Government

Bringing on a self-employed contractor, instead of adding to direct employee headcount, can save a small business owner as much as 30 percent (per worker) in additional payroll taxes and benefits. It also introduces flexibility in hiring and firing, and can reduce strains on office space, training budgets, and more.

It all sounds fairly straightforward. However, in legal terms, the line between an independent contractor and an employee is not always clear. Your workers are not independent contractors because you say they are – and there can be costly tax implications if you get it wrong.

Before you engage an independent contractor make sure you are clear on the nature of your relationship and familiarize yourself with the government criteria used to judge the status of that worker.

Below are three steps you need to take to ensure regulatory compliance when hiring an independent contractor.

1. Understand the Significance of Worker Classification

Misclassifying workers is a common business slip-up. Take, for example, this scenario described in a great article by Minda Zetlin on Inc.com about common and costly mistakes that businesses make when it comes to classifying contractors

In the article, Zetlin poses a seemingly clear cut question:

“Which of these workers qualifies as an independent contractor?

a)      A newspaper carrier paid for each copy delivered

b)      A knife salesman who works on commission, rents his own office, and pays his own staff

c)       A consultant who works part time for a marketing firm”

I must admit, my immediate response was “all of the above” and, indeed, each of the workers described was labeled as a contractor by the company he or she worked for. However, only the third example is a true contractor. The first two examples are, in fact, legal company employees, as determined in court rulings.

It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Getting it wrong can be costly resulting in penalties and back-tax payments for the business owner.

2. Know the Regulatory Criteria Used to Judge Worker Status

Here is a basic definition from the IRS of what classifies a person as a contractor as opposed to an employee:

• Independent Contractor – The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. Essentially independent contractors are considered to be in business for themselves. They take care of their own tax obligations and benefits.
• Employee – Anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

If you are not clear whether a particular worker is an employee or an independent contractor, you should file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding with the IRS. They will review the facts and circumstances for you and make an official determination of the worker’s status.

The Small Business Administration also has more information that can help you determine the difference between an employee and a contractor.

3. Understand and Maintain Your Tax Obligations with Regards to Contractors

If you determine that you are using an independent contractor, you will need to file some paperwork with the IRS and pay the associated taxes. This means maintaining W-9 forms, contractor’s business licenses and certification of insurance, as well as filing a 1099-MISC form to report payments.

Other Resources

For more, check out helpful information from the government’s Hiring Independent Contractors resource page on Business.gov.

Whether you are the sole employee of your enterprise or you have several employees, incorporation can bring legal and tax protection for you as its owner, but can also bring tax burden, additional cost and paperwork. So it’s important to understand the implications of the business structure you choose for you business.

Outlined below are some of the benefits and disadvantages of incorporating your business as well as links to available government resources that can help you decide which business structure is right for you.

Benefits of Incorporation

Here are some of the benefits you can realize if you decide to incorporate your business:

• Personal liability protection – An incorporated company is an entirely separate entity from you and your personal assets. It affords protection from any personal liability for your business debts and obligations. For example, if someone sues your company they can only go after your company’s assets, not your own.
• Tax benefits - If you incorporate you may gain tax benefits, although only under certain circumstances. This is one area to discuss with an accountant, as the marginal tax rates for corporations with taxable incomes in some cases can be higher than those for an individual in the same scale. Read more about the tax implications of incorporating on Scott Allen’s Entrepreneurs’ blog here or get tax information from the government here.
• Corporate identity – Incorporating can give a great sense of credibility to your business.
• Raising capital - You can raise capital more easily through the sale of stock and securities if your business is incorporated.
• Unlimited life - Your corporation can have an indefinite life and outlive you. Do note that LLCs have a limited duration. Get more information on business structure differences from the SBA.

Disadvantages of Incorporation

Some of the disadvantages of incorporation, particularly for the small business owner, include:

• Paperwork – You’ll need to file two tax returns (one for you one for your business) and maintain detailed business records and formalities.
• Cost – The fees associated with initial incorporation and ongoing maintenance can put a strain on the small business owner. LLCs, however, can be a more economic alternative to full blown incorporation.
• Liability may not be as limited as you think – The main advantage of incorporating, limited liability, may be challenged by personal guarantees and/or credit agreements. When a corporation has insufficient assets to secure a loan, banks often insist on personal guarantees from the business owner. This can result in you being personally liable if your corporation can’t meet its repayment obligations.

How to Incorporate

If after careful planning and consideration you have chosen to incorporate your company, you will need to pursue the process directly with your state. In fact, you are required by law to register your business with the state whether you choose to be a corporation, non-profit, LLC, or a partnership.

Typically, if you only operate in one state, you should incorporate in that state. If you operate in multiple states, you should determine which state is the friendliest to corporations and incorporate in that state.

Find out how to incorporate in your chosen state by following the state-by-state links here.

Other Resources

Save the expense of calling your accountant and take advantage of the freely available expertise of a network of government and other small business experts over the Web, the phone or in person:

• Get help and advice from small business development experts.
• Understand the tax implications of incorporation or other business structure options.

Now may not be the time when small business owners give the 2008 tax season too much thought. But a little tax preparation now – in the midst of the holiday season – can pay dividends down the line.

Consider some basic strategies for taking control of your taxes now, before they take control of you:

1. Get Your Ducks in a Row

Take control, get organized, and gather all the necessary records and documents that help support the numbers filed on your tax return. Records include W-2s, 1099s, expense receipts, bank statements, etc.

2. Look into Available Tax Preparation Resources

While there are many tax preparation software options available on the market, as a small business owner you may want to consider using a professional tax advisor or accountant. Not only can these professionals keep your stress levels low, they can help you navigate the ever-changing landscape of small business tax deductions.

As a rule of thumb, professional help becomes a must if you have accrued significant capital from stocks or the sale of assets, or have income from several sources (e.g. consulting, other business interests, etc.) and/or overseas markets.

Be sure to shop around for the right professional – preferably someone with experience in your field of business and within your budget – and don’t forget to get recommendations from friends, co-workers, or clients.

3. Stay Abreast of Tax Requirements

You don’t need to be an expert, but life is a lot easier if you are aware of the basic tax laws that apply to your business. Even if you don’t handle your own preparation and filing, it helps to have a better idea of what to expect as a small business owner.

An easy way to start staying on top of your records is to maintain a tax calendar throughout the year. The IRS can help with this and has put together a Small Business Tax Calendar that lists everything you need to know about staying on top of tax deadlines and requirements throughout the year. It can also be imported into Microsoft Outlook.

If you need more general help, this online portal brings together SBA and IRS tax guidance and resources specifically for small businesses.

The U.S. Government also provides online tax training, workshops and more to help small business owners get a better handle on their business taxes.

Lest early talk of taxes dampen your holiday season, I found a quote by Nancie J. Carmody that puts it all in context (well, somewhat):  “I am thankful for the taxes I pay because it means that I’m employed.”

But the savvy entrepreneur will know that lowering your tax burden should be approached as a long term strategy that goes to the heart of your business structure, investments, and work methods.

Below are some fundamental long term business strategies and approaches that can help reduce your small business tax liability.

1. Select the Right Business Structure

Deciding on the right business structure for your company is a daunting task, but do it right and you can realize significant tax benefits. Start by educating yourself on the available structuring options and what the ramifications are for your business.

Choosing the right structure is a highly individual process that hinges on your current and anticipated finances and taxes. So it’s critical that you avoid making assumptions about the perceived tax savings associated with the various types of structures.  What might work for your cousin’s business may not apply to yours.  Read my blog post – Should I Incorporate My Small Business? – for more help on this topic.

The Small Business Administration (SBA) also offers a very useful Guide to Choosing a Small Business Structure that outlines the available options.  But before you do anything, get expert advice – talk to an accountant or tax consultant before making your final decision. Once you have made your decision you’ll need to register your business.

2. Take Advantage of Tax Deductions for Energy Efficiency

Not only can you get grants and loans from the government for making green upgrades to your business, you can get tax deductions and credits too.

A tax credit can provide significant savings by reducing the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself.

Learn more about federal tax credits and state tax incentives for energy efficiency. You can also access more tools and resources for maximizing tax savings with the government’s Green Business Guide.

This article from NFIB also offers some great tips and tricks for greening your business with the latest technology.

3. Hire Independent Contractors

Using independent contractors instead of hiring employees can reduce your payroll taxes, which can often add 20-30 percent to payroll costs per employee.

These self-managed freelancers can help meet small business project deadlines or support specialized tasks such as marketing, IT, accounting, etc. They can also free you from many administrative tasks such as withholding taxes, benefits, etc.

Be cautious, however, as business owners can face costly penalties for misclassifying employees as independent contractors, and the definitions are not as black and white as they may seem. Read my earlier blog post – Working with Independent Contractors: Understanding Tax Requirements - to ensure your business is complying with government regulations regarding the classification and use of independent contractors.

4. Know Your Deductibles

From operating a home-based business to using your personal vehicle for company use, small business tax write offs can have many benefits, including lowering your taxable gross income and earned income, which may increase your earned income credit.

Whether you prepare your own taxes or work with a tax professional, the right amount of planning will get you all the deductions you deserve. The government offers straightforward guidance as to which expenses qualify as tax deductible. You can also check out my blog post – Tax Deduction 101 for Small Business – for more tips.

5. Talk To Someone Who Can Help

Starting your own business and operating it to ensure the maximum amount of profit within the law is quite often not possible without the help of a tax specialist or business advisor. Of course, these professionals can be expensive.

There are alternatives and it’s a good idea to seek out some of the free tax guidance and support offered by Uncle Sam. The government’s Business Gateway venture, through its Business.gov Web site, has many resources available that can help small business owners understand how best to take advantage of tax-lowering strategies.

In addition, there are many in-person or online resources available to the small business owner. Here’s a summary of a few:

• In-person Resources – The SBA provides free and low-cost business counseling, training, and development help across the U.S. Find one near you here. You can also take advantage of SBA resource partners including SCORE business advisors.
• Online Resources – IRS Small Business and Self-Employed Tax Center. More than just forms and tax payment guidance, this portal includes video and audio online learning about business taxes.
• Workshops and Programs – The IRS offers online and in-person training and workshops to help small business owners understand their tax obligations. Learn more here.

In good times and in bad, the federal government always has service and product needs that can turn into a steady business for you. It may be time to develop a government-focused strategy for your business. As you learn more about the various types of federal needs, you may find that your company is a good match for doing business with the government.

Small businesses have a significant competitive advantage with the U.S. federal government. The U.S. government has set aside dollars specifically for small businesses (Refer back to a series of blogs I wrote on government contracting starting on 9-10-08, for more detail on working with the federal government).  Now, if you are a small business AND a minority owned business, there are even more advantages available to you.

The Business.gov website provides a lot of information on minority owned businesses.  One federal program that helps members of minority groups start their own businesses is called the 8(a) Business Development program. The purpose of the 8(a) Business Development program is to help small, disadvantaged businesses compete in the American economy and federal procurement market. Participants stay with the program for 9 years from the date of the SBA’s approval letter for admission into the program. Admitted companies must maintain program eligibility during their tenure and inform the SBA of any changes that might adversely affect their participant status. Take a look here for more information and to find out if you qualify for the 8(a) Business Development program.

Other federal resources for minority owned businesses include a program called the HUBZone. HUBZone is a program sponsored by the U.S. Small Business Administration that helps businesses in historically underutilized areas gain access to federal procurement opportunities. The intent is to promote economic development and employment growth in distressed geographies by establishing preferences and providing access to business opportunities within the federal government.

Take a look at Business.gov and find out more about how you can develop a government growth strategy during a stormy economic time.  And, don’t forget to review my earlier blogs on contracting so that you can get started right away!

We all do online searches – often confusing, particularly for those who aren’t master web navigators (myself and the cats included in that group). When it comes to your business, it’s best to muddle through the government information. Believe it or not, much of the government has gotten friendlier. Our tax dollars are paying for this so we should use it and when it’s not helpful, we should fill out the online surveys and contact forms. We want our funds to be spent to benefit us and unless we voice our concerns, no one will hear us! Please remember (I can’t emphasize this enough) – government resources are FREE. No true government site will ask you to pay to enter. Now onto some more info…

Resources for Non-profits

1. USA.gov – This site is the on-line version of what many companies offering CFDA assistance services use to advise their clients. It is available for FREE to all who wish to reference it. It has specific information for non-profits divided into 3 sections: grants/loans, management/operations, and tax information. There is also an email alert that you can sign-up for when new information is added. Check out the easy to follow steps for writing a grant proposal and tips.
2. Computers for Learning (CFL) – This program matches the computer needs of educational non-profits with excess equipment in federal agencies. The FAQ is very helpful in explaining some of the details.
3. US Department of Labor – This page provides a shortcut to information for non-profits. Check out the compliance assistance information and resources to help you understand the laws enforced and administered by DOL. There are also a lot of great links to other government resources on this page.
4. Business.gov provides a good overview for non-profits and has other resources for minority-owned businesses as well.
5. The SBA provides counseling and assistance through Small Business Development Centers. In addition, the SBA’s Center for Faith-Based and Community Initiatives seeks to empower faith-based and other community organizations to apply for federal social service grants. It supplies information and training in this effort.

Resources for Non-profits

1. The online Catalog of Federal Domestic Assistance gives you access to a database of all Federal programs available to nonprofit organizations and institutions. The CFDA Web Site is updated bi-weekly as new or updated program information is received from Federal agencies. This site also provides contact information for how to apply and guidelines to assist in filing for federal assistance.

1. Business.gov has a page dedicated to resources for non-profits. It includes links to valuable resources and acts as one single destination to find a host of tools and sites that can assist. It’s all organized in an easy-to-use format. So if you want a host of tools, bookmark this page.

1. The Office of Management and Budget assists by principles for determining costs of grants, contracts and other agreements with non-profit organizations. The Office of Management and Budget (OMB) is part of the Executive Office of the President.

1. Grants.gov is another source to find and apply for federal government grants. The U.S. Department of Health and Human Services is a managing partner for Grants.gov, an initiative that is having an unparalleled impact on the grant community. Learn more about Grants.gov and how to find and apply for a grant that is right for your non-profit business. Remember that you do not have to register with Grants.gov to find grant opportunities. However, once you are ready to apply for a grant, you will need to get registered. This process takes 3-5 business days. You can also register to receive email notifications of new grant postings.

1. The IRS also links to helpful information about points of intersection between charitable organizations and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.

1. The Federal Surplus Personal Property Donation Program enables certain nonfederal organizations to obtain personal property that the federal government no longer needs. The Federal Property and Administrative Services Act of 1949, as amended, provides for the transfer of surplus personal property to State Agencies for Surplus Property. To search for available surplus property, eligible agencies must go through their SASP to obtain a generic search-only access code and password to logon to GSAXcess®.

Everyone is looking for a grant or loan for their business. In future posts, I will discuss some government grants/loans tools that will be launched for assisting businesses in locating what is available and how to apply. However, given these times of reduced government spending and difficulty in securing loans from our banking system, private investment is certainly an option worth discussing and there are government resources available to help navigate the way.

Venture capital is a type of private equity capital typically provided to start-up, new, and growing companies – with the eventual anticipation of generation a return, public offering, or sale of the business. Typically, venture capitalists will fund a business for partial ownership or shares of the company they are investing in. These are usually institutional investors and wealthy individuals and the resources are combined through these investment firms. For the down and dirty basics of VC, check out wikipedia, the free encyclopedia. Below are several government resources that can assist:

Government Tools for Financing Assistance

1. Active Capital is the premier Website for entrepreneurs seeking private investment and private investors seeking deals in a secure and protected environment consistent with all investment laws. It is a simple, secure and low-cost way for investors and small companies to find each other – it’s an Internet-based listing service for securities offerings of small, growing companies located throughout the nation, that are viewed anonymously by accredited investors. Active Capital rises above similar sites because of its legal status, action orientation, cost structure, and degree of support for growing entrepreneurial companies.

1. The Small Business Investment Company (SBIC), part of the SBA, is designed to improve and stimulate the national economy and small businesses by stimulating and supplementing the flow of private equity capital and long term loan funds for the sound financing, growth, expansion and modernization of small business operations while insuring the maximum participation of private financing sources.

1. The New Markets Venture Capital (”NMVC”) Program is a developmental venture capital program designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas. Through public-private partnerships between the SBA and newly formed NMVC Companies and existing Specialized Small Business Investment Companies, the program will meet the unmet equity needs of local entrepreneurs through developmental venture capital investments, provide technical assistance to small businesses, create quality employment opportunities for low income area residents, and build wealth within low income areas.

1. Business.gov can also assist small businesses in finding funding resources. They have several pages dedicated to funding for specific business types, partnerships, import/export, as well as information on venture capital financing.

Requirements vs. Reality

Most businesses are not required to have business insurance (unless you are an employer – see below). If your business is an LLC or a corporation your personal assets are protected from business liabilities. Without insurance, however, your business assets are unprotected.  Business is inherently unpredictable; nobody expects the unexpected. Business insurance protects your business by minimizing financial risks associated with unexpected events – a lawsuit, a natural disaster, death, etc. Protection is good.

Insurance Choices

There are five different types of business insurance you can invest in, depending on your unique business risks:

• General liability insurance
• Product liability insurance
• Professional Liability insurance
• Commercial Property insurance
• Home-based Business insurance

The Small Business Administration’s Business.gov provides details on each of these on its ‘Types of Business Insurance‘ page.

Insurance Tips

Business.gov also dedicates a page on its website to discussing the following Five Tips for Buying Business Insurance:

1.      Asses your risks – be sure you fully understand underwriting, premiums, and deductibles and how these all apply to your business

2.      Shop around – there may be ‘specialist brokers’ that cater to your particular type of business

3.      Consider a business owner’s policy – a BOP can save you money; and, make sure you understand how much it does, and does not, cover

4.      Find a reputable, licensed agent – make sure your agent is state-approved

5.      Assess your insurance coverage on an annual basis – as your business grows and changes, make sure your insurance coverage reflects that

On this Five Tips for Buying Business Insurance page Busines.gov provides advice in each of these areas, as well as additional insurance resources – such as a state-by-state listing of insurance offices. I highly recommend spending some quality time going through these pages and getting educated.

Insurance requirements: Employees = Insurance

As I touched on at the start of this entry, businesses with employees are required to pay for insurance: workers’ compensation insurance, unemployment insurance, and disability insurance (depending on where your business is located).

• For more information on workers’ compensation insurance, go to this state-by-state listing of agencies and information.
• For more information on unemployment insurance, go to this state-by-state listing of unemployment tax and insurance information.

You are only required to purchase disability insurance if you do business in one of the following locations: California, Hawaii, New Jersey, New York, Puerto Rico, Long Island. Visit Business.gov’s Insurance Requirement for Employers page for links directly to each of these and their unique requirements.

In the end …

… insurance may well be your business’ necessary evil. But, ‘necessary’ is the key word here. Take the time to get smart before you buy. As I said at the start of this post, it may be easier – and cheaper – than you think.

Filling out forms – often a barrage of forms – can feel like the necessary evil of business. Larger companies have different departments in charge of handling their own required forms. Small business owners, however, are solely responsible for all forms regarding every part of the business. This is often one of the most difficult, confusing, and frustrating parts of being a business owner.

Luckily, there’s help.

Forms.gov

For a big-picture perspective, there’s Forms.gov. This website is essentially a massive catalog of more than 5,000 federal forms, from tax forms to small-business forms to Federal Emergency Management Administration (FEMA) forms. Any kind of form you’re looking for is here.

As this is such a large catalog, it may be difficult to find what you’re looking for unless you know precisely the name and/or number of the form in question. For example, if you’re trying to find out what tax forms you are required to file, and you type “tax” in the search field on Forms.gov, you’ll get a listing of every tax form available – including the Currency Transaction Report for Casinos in Nevada. Maybe this what you were looking for. Probably not.

Forms.gov is a fantastic resource. And, there are other resources you can use as well.

Business.gov

The SBA’s Business.gov was originally meant to be a portal for federal forms. While it has evolved into a critical resource for small businesses, it’s still a great resource for forms.

For example, Business.gov has a main Government Forms Page. At the top of the page you’ll find a listing of the 12 most-requested forms by small-business owners as well as instructions on how to fill out these forms. This list includes the Employer Identification Number (EIN) application, W-2, W-4, and W-9 tax and withholding forms, quarterly and annual federal tax returns, and more. As you might imagine, most of these top 12 are tax forms.

Further down the page you’ll find forms and appropriate links relating to Loans and Financial Assistance, Government Contracting (8(a) forms), Occupational Health and Safety (OSHA record keeping forms), Patents, Trademark and Copyrights, and Taxes.

You’ll also find a range of resources regarding employment, from the I-9 Employment Eligibility Verification form to a link that provides a state-by-state list of new hire reporting centers, so employers can learn and understand their individual state requirements. You’ll also find a listing of forms for hiring foreign workers as well as migrant and seasonal agricultural workers.

Easing the Pain

As a business owner, required forms can be your nemesis. My advice: Face the enemy! It may be easier than you think to emerge victorious.

Intellectual property is a term used to describe trade secrets, patents, trademarks, and copyright. Protecting your intellectual property is an important part of your business, particularly if you are looking to trademark your business’ name, symbol, motto etc., or if your business is based on an invention or involves writing and producing original written works, music, or video content.

Government Resources – Intellectual Property

According to the U.S. Patent and Trademark Offices (USPTO), small businesses may often lack the familiarity with the process of protecting their intellectual property. They can often find themselves at a particular disadvantage because they often lack the resources and expertise available to larger corporations. Research conducted in spring 2005 by the USPTO indicates that only 15 percent of small businesses that do business overseas are aware that their IP protection in the U.S. does not travel – that is, that a U.S. patent or trademark provides protection only in the United States. To help address this problem, the USPTO has launched a nationwide program to encourage small businesses to recognize and consider the benefits of strong IP protection-both domestically and abroad.

The USPTO has developed a website to help small businesses better identify and address their IP protection needs. The USPTO is also working with organizations like the U.S. Chamber of Commerce and the National Association of Manufacturers to help spread the word about the benefits of filing for IP protection. Free informational materials, which can be downloaded from this Web site, will help guide small businesses through the often-complicated world of intellectual property protection. There’s also a great FAQ available.

Government Resources – Patents, Trademarks, & Copyrights

Patents, Trademarks, and Copyrights are three types of intellectual property protection. They are all different and serve different purposes. Patents protect inventions, and improvements to existing inventions. Trademarks include any word, name, symbol, or device, or any combination, used, or intended to be used in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. Service marks include any word, name, symbol, device, or any combination, used, or intended to be used, in commerce, to identify and distinguish the services of one provider from services provided by others, and to indicate the source of the services. Copyrights protect literary, artistic, and musical works. For general information on copyright, visit http://www.copyright.gov.

To patent an invention or register a trademark, you’ll need to fill out an application with the USPTO. There’s a lot of consolidated information on this topic here and an easy-to-use/simple FAQ that is really helpful on finding simple definitions and the forms you need.

Other Helpful Forums

• Check out Business.gov for a lot of fundamentals that the small business owner needs to know. As always, government resources are free. No site will ever ask you for credit card information or to login.

• Sole Proprietorship - A business owned and managed by one individual who is personally liable for all business debts and obligations.
• Partnership – Two or more people share ownership of a single business.
• Corporation – A legal entity owned by shareholders.
• S Corporation – A special type of corporation created through a tax election. An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation.
• Limited Liability Company (LLC) – A relatively new, hybrid-type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership
• Non-Profit – An organization engaged in activities of public or private interest that are motivated by making a profit. Some non-profits are exempt from paying federal taxes.
• Cooperative – A business or organization owned by and operated for the benefit of those using its services. Cooperatives are not a legal structure.

Don’t fret – your initial choice of a business type is not permanent. You can start out as one type and change to another. If this happens, just follow the IRS’s instructions for Changes in Ownership or Organization. You will also need to file new documents with your state government, may also need to obtain new business licenses (depending on your state).

The government can assist with determining which type is best for you. Check out this great resource page provided by the SBA that can help you decide which of the above business types is right for your needs. The site also has information to help you get started. Believe it or not, the government provides tools to help you name your business, choose a location, register your business by state (many states have specific filing requirements for individual businesses), etc. We’ll discuss these basics in a little more detail below.

What’s in a Name?

There is more to naming your business than just coming up with something that sounds good or something that rhymes with your cat’s nickname. Thought needs to be given to state and local requirements for using “assumed” trade names and making sure you don’t accidentally steal someone else’s business name. The following guides provide information on selecting and registering a business name:

• How to name a business: Your business’ name will shape its identity. Have several options and research your ideas to make sure the name is legally available. Use a name database. The Thomas Register is a free, unregistered trademark database. Federally registered trademarks can be found on the U.S. Patent and Trademark Office’s database.
• Business name registration: The legal name of a business is the name of the person or entity that owns a business. If you are the sole owner, its legal name is your full name. If your business is a partnership, the legal name is the name given in your partnership agreement or the last names of the partners. For limited liability corporations (LLCs) and corporations, the business’ legal name is the one that was registered with the state government. Your business’ legal name is required on all government forms and applications, including your application for employer tax IDs, licenses and permits. However, if you want to open a shop or sell your products under a different name, then you may have to file a “fictitious name” registration form with your government agency. This chart provides the requirements for fictitious name filing in all 50 states and territories.

Location, location, location

Choosing the right location for your business can be a major factor in its success or failure. A good location may allow a struggling business to survive, but a weak location could mean trouble for even a very well-run business. Make sure you know all the legal restrictions of your place of business.

Home office energy efficiency

We all know times are tough right now and it’s not only consumers who are pinching pennies. Even businesses are tightening their belts. With this in mind, sometimes, being energy efficient means doing our part to help the environment but it also means saving ourselves – and our home businesses – valuable dollars. As usual, there are government resources available to provide direction and assistance to small and home business owners.

Energy Star

Virtually any small or home business can improve its energy efficiency easily and cost-effectively, using the numerous resources that are available both from Energy Star and a wide variety of other organizations. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices. Energy Star rates and recommends products that can save you – even putting a sticker on these products so you recognize them. But check out the site for lists of products, great tips, etc.

Home Business Energy Savings & Free Government Tools

Saving energy for your home-based business may seem like a challenge, but there are some simple, no-cost or low-cost steps you can take to reduce your energy bills by as much as 30%. Here are things you can do for free to save your home business money immediately:

• Turn up or turn back the thermostat during unoccupied times.
• Consider buying a programmable thermostat.
• Turn off lights or office equipment at night and over the weekend.
• Take advantage of daylight.
• Use e-mail instead for faxes and paper memos or letters.
• Disconnect unnecessary equipment.

There’s also a very easy, web-based energy efficiency tool. The Home Energy Saver is designed to help identify the best ways to save energy and find the resources to make the savings happen. The project is sponsored by the U.S. Department of Energy (DOE), as part of the national ENERGY STAR Program (mentioned above), for improving energy efficiency in homes, with previous support from the U.S. Environmental Protection Agency (EPA), the US Department of Housing and Urban Development’s PATH program, and the California Energy Commission’s Public Interest Energy Research (PIER) program.

Tax Credits

There are federal tax credits available, too. A tax credit can provide significant savings. It reduces the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. Tax credits are available for home builders, manufacturers, commercial buildings, and they are available on fuel efficient vehicles as well.

The US Department of Energy (Energy Efficiency and Renewable Energy) has a database that captures state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics. State-level information is updated annually after each state’s legislative session ends. To access state information on this site is simple – you just select a state from the map on the site. Federal information is updated after enacted legislation is signed into law. Select the Federal Incentives and Laws link to get the latest federal-level information.

Other References

Energy Savers Tips for Saving Money

Energy Savers in Spanish

Home Office Tips to Lower Energy Costs

Calculating Energy Savings