SBA Offers Plenty of Seminars for the Aspiring Business Owner
“Do I need a business plan?” “How do I introduce drug testing for my employees?” “Where can I get legal advice on a merger?” Small-business owners often have questions about how to run their companies. This column provides answers from a variety of experts. Consultants are interviewed by freelance writer Karen E. Klein.
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Q: My father is a retired golfer and ex-Cincinnati Red who lives in Florida. I would love to bring him to Orange County to be closer to his family, but if I could think of a small business to interest him, would the U.S. Small Business Administration help us?
--Mari Rahmes, Irvine
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A: Each month we offer many informative, low-cost seminars and workshops for small-business owners and people who are considering starting small businesses. For instance, in the next few weeks we are sponsoring seminars on topics such as Marketing Strategies for Growing Your Business, Small Business Tax Workshop and How to Succeed in a Home-Based Business.
The two- and three-hour seminars cost from $10 to $25 and are led by business professionals who are available to answer attendees’ questions. Everyone who attends leaves with a packet of resources and specific information that they can use for follow-up.
It sounds as if your father would benefit from a very popular, all-day offering called Orange County Start-Up Seminar. It costs $35 and covers a range of issues for would-be entrepreneurs.
Among other topics, he will be taught to evaluate his personal characteristics to see if he has the right skills and experience to run his own business, learn how to pull together financing, find a niche and estimate the expenses his business will incur in the first month of operation.
He will take home a packet of information, including a brochure on SBA loan programs, tax and regulatory requirements for businesses, tips on leasing a facility and a checklist for starting a business.
After the seminar, he could make an appointment to meet with one of our SCORE (Service Corps of Retired Executives) counselors to get one-on-one help with his business idea and financial plan. We have more than 60 retired executives who volunteer their time to help entrepreneurs start and operate their own businesses.
To find out more about SBA seminars and our other services, call our office at (714) 550-7420 and request the current management training calendar. The Orange County office covers Orange, Riverside and San Bernardino counties and includes a high-technology development center affiliated with UC Irvine.
Residents of Los Angeles, Ventura and Santa Barbara counties can get information on similar offerings from the Los Angeles County SBA office at (818) 552-3201.
--Vicki May, public information
officer, Santa Ana District Office,
U.S. Small Business Administration
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Q: Is there sales tax added when you buy a business from your partner? If so, how much would the tax be in Alhambra? By the end of the year, would I be able to claim this business on my income tax?
--N. Du, Alhambra
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A: Generally speaking, there is no tax on a transfer or sale between business partners. However, there are certain businesses, depending on the inventory they carry, that are taxed in a sale. The answer also depends on whether you are buying a corporation, a proprietorship or a partnership.
To determine whether there is a city tax imposed on such a transaction, visit the Alhambra City Hall and ask for the city clerk’s office. They should be able to answer your question.
As far as income tax returns for 1997, you could most likely claim the business starting in the month when you actually own it. The answer again depends on exactly what kind of business you are buying.
To be safe, before purchasing any business, I recommend that you consult a tax advisor. It will be time and money well spent.
--Gene Pepper, buyer’s
consultant, Business Solutions
for Today, Glendale
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Q: I have been a banker for the last 11 years and decided to change my lifestyle to something healthier, so I am starting a home-based swimming-pool cleaning and maintenance business. What do I need, legally, to begin, other than a business license?
--Stephen S. Slee, Woodland Hills
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A: The first place a home-based business needs to check is City Hall. Find out what regulations apply to home-based businesses in your jurisdiction and what kind of zoning your home is under to make sure operating your business there will be legal.
Depending on how far away your clients will be, you may need additional business licenses on file in the cities or local jurisdictions where you will be cleaning pools. You will also need a fictitious business name statement and, if you plan to hire employees, you will need a federal tax identification number and workers’ compensation insurance.
Businesses that operate in or around another person’s residence (such as cleaning services or construction companies) generally need to have additional insurance in the form of a bond that will cover the company in case of an accident.
You should meet with an insurance company representative and ask him or her what kind of insurance coverage you need and what amount would be right for your new business.
Some pool-cleaning services also sell products. If you plan to do that, you would need to check with the state Board of Equalization to obtain a resale license.
--Michelle Bergquist, president,
Smart Business Results, Irvine
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If you have a question about how to start or operate a small business, please mail it to Karen E. Klein in care of the Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016 or e-mail it to Kklein6349@aol.com. Include your name, address and telephone number. The column is designed to answer questions of general interest. It should not be construed as legal advice.
* LEARNING CURVE
Through trial and error, an attorney has started three new companies in three years. D2
