Start a Business

When starting a new business, there are many important decisions to make and many rules and procedures you need to know. While there is no single source for all filing requirements, the checklist below can get you on the right track.

Are you ready to pursue your dream? 

Click on www.sba.gov/library/pubs/mp-12.pdf and check the “Identify Your Reasons”, “A Self-Analysis”, “Personal Skills and Experience” and “Is Your Idea Feasible” on the left-hand side of your screen and complete checklist.  There are many questions that need to be answered before you start your business. These tools will help you determine if you are ready to start a business.

If you are ready, prepare a business plan.

There are various organizations that can help you:

SCORE, Counselors to America’s Small Business, are real-world volunteers with time-tested knowledge who donate their time to help small businesses succeed.  Their confidential services are free and tailored to meet the needs of your small business and personal objectives.  For more information, you can visit them at www.readingscore.com. 

Kutztown University Small Business Development Center (SBDC) offers free one-to-one business consulting to help your pre-venture or existing business succeed in today’s global market.  For more information visit them at www.kutztownsbdc.org.

The Small Business Administration has an online business plan assistance tool as well as other important information for small businesses.  Click on www.sba.gov/library/pubs/mp-32.pdf for a sample plan and outline.

Weed & Seed Micro-Plus Program is a program that is designed to help you start or grow your business.  Apart from helping you put together a business plan, they offer financing to start a business and help to expand an existing one.  They also offer free technical assistance in different business related matters.

For more information about these organizations or to make an appointment with one of the SCORE, SDBC or Micro-Plus Program consultants, call the Chamber

at 610-898-8385 or send us an email with your specific question to smbiz@GreaterReadingChamber.org.

Obtain legal services to help you determine the best legal structure for your business. 

There are various types of legal structures for businesses.  Consult with a legal professional to determine which type is better for you based on your needs, goals and type of business.  Some types of legal structures have to be registered with the Department of State.  Click here to find a list of legal professionals that are members of the Chamber.

Register your business name if it is a factitious name. 

Consult with your legal professional to determine if you need to register as a fictitious name. You can find the application at www.dos.state.pa.us/corps/lib/corps/20/7/311.pdf.  Click here to find a list of legal professionals that are members of the Chamber.

Contact the Internal Revenue Service (IRS).

The IRS will help you determine the types of taxes your business is required to pay and can provide the necessary forms.  To obtain this information, call1-800-829-3676 or visit them at www.irs.ustreas.gov/businesses/small/index.html.

You may also need to obtain a Federal Employer Identification Number (EIN) for federal tax purposes. Generally, most businesses need an EIN. For more information on EIN visit the IRS website at http://www.irs.gov/businesses/index.html.

Find out if your business is required to collect sales tax or any other applicable tax 

Contact the state regional Taxpayer’s Assistance Office at 610-378-4401, visit them on the web at www.revenue.state.pa.us/ or visit the local office at:

          Department of Revenue

          625 Cherry Street, Suite 239

          Reading, PA  19601

For a comprehensive listing of taxable and non-taxable tangible personal property and services, as well as rate charts for Sales, Local and PTA taxes, click on www.revenue.state.pa.us/revenue/lib/revenue/rev-717.pdf.

Contact the municipality in which you are going to start the business.

This is a necessary step to obtain your Business Privilege License, Certificate of Occupancy and to determine what other requirements they have.  Each municipality is different.  If you are going to rent or buy a location to run your business, make sure it is zoned for the type of business you are going to start.

For a Business Privilege License from the City of Reading, contact the Tax Administration Bureau at 610-655-6333.  For additional information contact the city at 1-877-727-3234.

Obtain the required federal, state, and local forms.

 If you will employ one or more people, you will need to obtain the required forms for Worker’s Compensation, Unemployment Compensation, Federal Income Tax Withholding, State Income Tax Withholding, and Social Security Tax.  Depending on the type of business you are pursuing, there may be other registration or licensing required by the state or the municipality in which you are opening the business.

For more information on Federal requirements, visit the IRS web site at http://www.irs.gov/businesses/index.html.

For more information on state requirements, visit http://www.state.pa.us/papower/taxonomy/taxonomy.asp?DLN=29888 or http://www.paopen4business.state.pa.us/paofb/site/default.asp.

For more information on local requirements, contact your municipality.

You may find it wise to hire an accountant. 

An accountant can help you obtain and understand the above-mentioned forms.  Click here to find a list of accountants who are Chamber members.

Consult with an insurance agent.

 It is important to have the necessary and adequate insurance to protect yourself and your business.  Click here to find a list of insurance agents that are members of the Chamber.

Establish a bank account for your business.

You should keep your personal account separate from your business account.  No matter how small your business may be, it is important to have a bank account specifically for your business.  With the account you should get checks, a check card and online services.  You should also consider opening a separate account to deposit collected sales taxes and withholding taxes.

Secure financing if needed.

When determining the amount needed to start your business, you must project the start-up capital (equipment, renovation, marketing, etc.) needed, as well as the cash flow (salaries, rent, utilities, etc.) needed for the early stages of operation.  Many small businesses fail because they did not properly project these costs.

You can access this funding through debt capital, which are borrowed funds.  You can borrow funds privately through a family member or friend or through a bank or community development organization.  All banks have different requirements and loan guidelines, so check around to see which best fits your needs.  You can also access funding though equity capital, which is generated by the sale of stock or money the owner puts into the business.

Join the Greater Reading Chamber of Commerce & Industry.

 The Chamber provides networking and additional business resources to insure your businesses success.  Click here for a Membership Application.

For more information or if you have questions, please call the Chamber at 610-898-8385 or send us an email with your specific question to smbiz@GreaterReadingChamber.org