Business Start-Up Guide

Download a printable Business Start-Up Guide checklist.
If you want to expand a business, view the Business Expansion Guide.

INDEX  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8  |  9  |  10  |  11  |  12  |  13  |  14

 

1. Develop Your Business Idea

Determine whether business ownership meets enough of your personal and professional goals to put the time and energy into researching the business idea’s viability. The U.S. Small Business Administration (SBA) and the Vermont Small Business Development Center (VtSBA) provide some useful tools:

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2. Create Your Business Plan

Research and write a complete business plan. There are many resources available for this including:

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3.  Obtain State Professional Licensing (As Needed)

Depending on your profession, you may need to apply for the privilege of engaging in a certain profession, or occupation with the state of Vermont. To see comprehensive lists of professions licensed by the state of Vermont, please click on the options below:

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4. Choose Your Business Structure

The business structure you choose will have liability and tax implications. Click on the options below to explore the the options that are available to you:


Please Note: Script corporations (a.k.a. “Sub-chapter S Corporation” or “S Corp.”) and sole proprietorships are not business structures, but are rather tax statuses:

  • S Corporation

This tax status may be applied to either profit corporations or limited liability companies. Please visit the IRS website for details and restrictions on S corporations.

  • Sole Proprietorship

This tax status may be applied to either limited liability companies or trade names (DBA). Please visit the IRS website for details and restrictions on sole proprietorships.

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5. Choose and Register Your Business Name

Choosing and registering your business name is a key step to legally operating your business and potentially obtaining financial aid from the government. Your business name will be registered with the Office of the Secretary of State based on your chosen business structure:

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6. Obtain Employer ID Number and Vermont Business Tax Account

Please click on the options below for further details on obtaining the following:

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN.

For details, please contact the IRS via the link above or by phone at 800-829-4933 (Profit Businesses) or 877-829-5500 (Nonprofit Businesses).

A Vermont business tax account is required for most businesses before operating in the state of Vermont. Exempt Organizations must also register to receive their exemption from Vermont tax. 

For details please contact the Vermont Department of Taxes via the link above, or by phone at 802-828-2551 (Business Taxes).

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7. Register for Unemployment and Workers Compensation

For information on Unemployment Compensation, Workers Compensation, the regulation of wages and hours, Vermont Occupational Safety and Health Act rules, and State Labor Relations Act Provisions, contact:

Worker's Compensation Board

802-828-2286
labor.vermont.gov


Unemployment Employer Services

802-828-4344
https://uipublic.labor.vermont.gov/EmployerRegistration/VT_UI_Liability/Liabilitycheck1.aspx

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8. Municipal (City/Town) Permits and Zoning

Before buying a property or signing a lease, contact the city or town clerk where the business will be located to assure your plans conform to local restrictions and to obtain the necessary permits for buildings types and signs. Download a list of municipal zoning contacts.

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9. Act 250 Permit

For construction of improvements for new or existing commercial and industrial facilities, or for the change in use of an existing facility, you should check with the District Environmental Coordinator to determine if a Land Use (ACT 250) Permit will be required, please call 802-828-1556 or visit www.anr.state.vt.us/dec/permit_hb/anrregmap.htm for the contact information for your regional office.

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10. Signs

If you have an on-premise business sign, it is important to know that there are limitations on location, size, height, and structure in order to meet state and federal requirements. No privately owned signs are allowed in the state right of way, which is at least 25 feet from the centerline of the highway, and could be more.

To find out exactly where the state right of way is, you may contact the VTrans District Manager in your area to insure compliance with state and federal regulations. For a list of district managers and their contact information, please see http://vtransoperations.vermont.gov/maintenance_districts.

Most towns and cities have sign ordinances as part of their zoning. Contact your town officials to acquire necessary local permits for your on-premise sign. A local permit does not guarantee that your sign will comply with state and federal regulations.  

At a minimum, an on-premise sign may not be larger than 150 square feet (unless attached to a building), be taller than 25 feet, or be farther than 1,500 feet from the main entrance to the business measured along the highway centerline. On-premise signs are not allowed to face limited access highways.

Official Business Directional Sign (OBDS)

Only official traffic control signs and devices are allowed within the highway right of way.  One of these signs is an Official Business Directional Sign (OBDS). For information on OBDS and how to apply for them, please visit http://vtransengineering.vermont.gov/sections/highway/sign_control.

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11. Other State Licenses, Permits, and Regulations

Regional Development Corporations (RDCs)

The Vermont Department of Economic, Housing, and Community Development provides twelve Regional Development Corporations (RDCs), serving every geographic region of the state. These organizations serve as “satellites” of the Department, and they provide local knowledge and facilitate assistance in their communities. Please see the link above for a complete list and to find one for your region.

Vermont Agency of Natural Resources (ANR) – Department of Environmental Conservation (DEC)

 

Emergency Planning and Community Right‐to‐Know Act (EPCRA) Reporting

If your facility has chemicals in storage and meets the requirements established in Federal Law 42 USC Chapter 116 and Vermont Statute 20 VSA Chapter 1. Please follow the link above, or call 802-479-7586 for details.

 

Vermont Small Business Development Center (VtSBDC)

Offers a heads‐up on business environmental and permitting strategies and information for all business types. Please follow the link above, or call 802-728-1423 for details.

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12. Other Concerns

Legal

You may need to consult an attorney regarding your form of business ownership, leases, contracts, patents, trademarks, copyright, and such. The Vermont Bar Association has a lawyer referral service. Call 802-223-2020 or visit www.vtbar.org.

Accounting

Consult an accountant regarding bookkeeping systems, income tax planning and payments, pay roll reports, and related items.

Insurance

Consult an insurance agent about various forms of insurance: liability, fire, automobile, employee health and life, fidelity (insuring your business against employee theft), burglary and vandalism, business interruption, key‐person insurance, and worker′s compensation cost. 

Banking

Consult a banker about establishing a relationship for checking accounts, your future borrowing needs, credit card acceptance, and other concerns. Contact the U.S. Small Business Administration at http://www.sba.gov/category/navigation-structure/loans-grants for information about their business loan and grant programs. 

Trade Associations

Research and contact trade associations for helpful information in starting your business, including market statistics and training opportunities.

Consult the following directory source available at most business reference libraries:

Harper, K. A., & Gale/Cengage Learning (Firm) “National Organizations of the United States” Encyclopedia of associations: An associations reference (Vol. 1, published annually). Detroit, MI: Gale/Cengage Learning.

Includes lists, trade, business, professional, labor scientific, educational, fraternal, and social organizations in the U.S. and historical data. 

Chambers of Commerce

Contact your local and state chambers regarding their helpful services for new businesses in your community. Call 802-223-3443 or visit www.vtchamber.com.

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13. Economic Development Agencies and Funding Opportunities

Vermont Agency of Community Development (ACCD)

Vermont Agency of Transportation (VTRANS)

Disadvantaged Business Enterprise Program (DBE): Small business assistance in the form of Disadvantaged Business Enterprise (woman and minority owned business) and other programs that provide contract opportunities with AOT. Call 802-828-2657 or visit www.aot.state.vt.us/civilrights/dbe.htm.

Vermont Department of Labor

Offers a full range of workforce related services and information to businesses, workers, and job seekers. Call 802-828-4000 or visit www.labor.vermont.gov.

Vermont Department of Tourism & Marketing

Call 802-828-3237 or visit www.vermontvacation.com.

Vermont Procurement Technical Assistance Center

This network connects Vermont businesses with the government opportunities, both state and federal, and a Vermont business directory. Also, you may download “The Vermonter′s Guide to Doing Business,” a handy reference available at www.vermontbidsystem.com.

Burlington Community Economic Development Office

A department of the City of Burlington. They work with the community to foster economic vitality; preserve and enhance neighborhoods, quality of life and the environment; and promote equity and opportunity for all residents of Burlington. Call 802-865-7144 or visit www.cedoburlington.org.

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14. Other Sources of Business Assistance

Central Vermont Community Action Council – Micro-Business Development Program

Assists low- and moderate-income Vermonters to start and operate micro businesses. Call 802-476-8493 or visit http://www.cvcac.org/community-economic-development/micro-business-development.html.

Service Corps of Retired Executives (SCORE)

A nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide. Call 800-634-0245 or visit www.score.org.

Vermont Businesses for Social Responsibility (VSBR)

Fosters a business ethic in the state of Vermont that recognizes the opportunity and responsibility of the business community to set a high standard for protecting the natural, human, and economic environments of our citizens. Call 802-862-8347 or visit www.vbsr.org.

Vermont Economic Development Authority (VEDA)

Offers a range of financing options to help businesses succeed. Call 802-828-5627 or visit www.veda.org.

Vermont Grocers Association (VGA)

A statewide trade association representing all sectors of the Vermont food industry. Call 802-839-1928 or visit www.vtgrocers.org.

Vermont Hand Crafters

The oldest and largest juried craft organization in the state, this not-for-profit organization of Vermont residents is dedicated to the education, promotion and sale of high-quality Vermont crafts. Call 802-223-2636 or visit www.vermonthandcrafters.com.

Vermont Manufacturing Extension Center (VMEC)

Helps to improve and grow manufacturing in the state of Vermont and strengthen the global competitiveness of the state’s smaller manufacturers. Call 802-728-1432 or visit www.vmec.org.

Vermont Retail Association

Advances and protects the interests of the Vermont retail industry to help retailers achieve excellence in all areas of their business by providing special rates and programs for health and dental insurance, credit card processing, shipping, and other important services to its members. Call 802-879-6999 or visit www.vtretailers.com.

Vermont Small Business Development Center (VtSBDC)

Provides no‐cost business advising and low‐cost training to all Vermont entrepreneurs starting or growing their own businesses. Call 802-728-9101 or visit www.vtsbdc.org.

Vermont Specialty Food Association

The nation’s oldest and most highly regarded specialty food association. Call 802-839-1930 or visit www.vermontspecialtyfoods.org.

Vermont Venture Network

A monthly breakfast meeting to meet bankers, investors, and other entrepreneurs. Call 802-658-7830 or visit www.vermontventurenetwork.org.

Vermont Women’s Business Center (VWBC)

Provides the counseling, networking environment, business tools, and training to help women in the early stages of business creation reach a clear and progressive path towards profitability so they can thrive at the intersection of their passions and skills, and continue making a positive impact on their community and family. Call 802-479-9813 or visit www.vwbc.org.

Vermont Wood Manufacturers Association

Supports the industry in the state of Vermont and promotes its long‐term viability by expanding member presence in the marketplace, ensuring a sustainable supply of raw materials, increasing workforce skill, and acting as responsible employers and community members. Call 802-828-3211 or visit www.vermontwood.com.

Women’s Small Business Program (WSBP)

A part of Mercy Connections, WSBP is committed to empowering women at every stage with the information and resources they need to develop and polish their entrepreneurial aptitude and achieve economic independence. Call 802-846-7063 or visit mercyconnections.org/start-small-business-vermont.html.

VT/NH Direct Marketing Group

Provides seminars, an annual conference, and invaluable networking opportunities for business people throughout the Northeast. Call 802-457-2807 or visit www.vtnhdmg.org.

Northern Community Investment Corporation (NCIC)

Services the Northeast Kingdom through small business lending, financing of innovative entrepreneurs to develop a more diverse set of occupations for the region, and assisting in strategic investment mechanisms to keep businesses competitive. Call 802-748-1888 or visit www.ncic.org.

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If you have suggestions for additions to this checklist, contact the Corporations Division at 802-828-2386.

This page was last updated: 2014-08-27