Starting a small business?

The New York State Small Business Development Center, the premier business assistance organization in New York State, provides expert management and technical assistance to start-up and existing businesses across the state. It is administered by State University of New York and funded by the U.S. Small Business Administration, the State of New York, and host campuses.

Ken Homer, a full-time professional SBDC business advisor, spends two days each month at The Tompkins County Chamber of Commerce.  The SBDC works closely with other New York State economic development agencies, faculty and students at host institutions, and representatives from private industry and business to focus resources on assisting small businesses and entrepreneurs. The SBDC emphasizes counseling and training services to women, veterans, people with special needs, and minority clients. The SBDC also focuses on projects that advance the job development, investment, and economic growth priorities of New York State, with an emphasis on manufacturers, exporters and technology-oriented firms.  To set up an appointment in Ithaca with Ken Homer, please call the Chamber at (607)273-7080.   

BUSINESS CENTS®

Alternative Federal Credit Union’s Business CENTS® is a small business development program offering a "how to" business training course, seminars, one-on-one business counseling and marketing support for people interested in starting or expanding a business.  The Business CENTS® staff is available to help develop a marketing strategy, set goals, create financial statements, and answer questions. One-on-one business counseling provides the opportunity to put words to the plan you have for your business. 

AFCU’s Business CENTS Program can help you:

• Assess your business' financial feasibility
• Develop a marketing strategy
• Write a business plan
• Learn management skills
• Understand business and taxes
• Expand your business with confidence
• Access free business resources

For More Information, please contact: 

(607) 216-3423, 

Toll free: 877-273-AFCU Ext. 233

Email: CENTS@alternatives.org

Or stop by the AFCU Business Resource Center

125 N. Fulton Street, Ithaca NY

Frequently Asked Questions about Starting a Small Business

1) I want to start a small business – where do I begin?

First, make an appointment to receive counseling, free of charge, from our local SBDC representative by calling the Chamber at (607)273-7080.  SBDC advisors are adept at helping you write a business plan, the "roadmap" for your venture. Assistance from an SBDC is available to anyone interested in beginning a small business for the first time or improving or expanding an existing small business, who cannot afford the services of a private consultant.  In addition, the website “NY Loves Small Business” (http://www.nylovessmallbiz.com ) is a good resource for aspiring entrepreneurs in New York State.


2) I’ve heard of grant money being available to start my business - How can I find out more about it?

There exist several fine websites (GrantsWeb, the Catalog of Federal Domestic Assistance) on which one can search for available grant monies. Keep in mind, however, that our experience shows that grant money is rarely – if ever – made available to for-profit ventures for purposes of obtaining capital.


3) If that's the case, then – where is the money?

Each SBDC in New York has cultivated a relationship with their local banking community. While that is no guarantee that your loan will be approved, advisement from an SBDC counselor might better position your company to get the funds you need.

Under certain circumstances, the Small Business Administration will guarantee a percentage of business loans for qualified small businesses. Information regarding their loan programs can be found here


4) Where in New York should I call for information on permits and licenses?

Your first visit should be the NYS Governor's Office of Regulatory Reform at 1-800-342-3464 (or 518-474-8275). Also, the New York State Division of Licensing Services will be helpful regarding certain types of businesses.


5) Do I need to incorporate?

No. You can begin as a “sole Proprietor.” To do so, you just start doing business (following any legal requirements of your city or state – see below).  The upside of being a sole proprietor is it’s easy and cheap. You just file a “Schedule C” on your personal tax returns to report business income.  The downside is there’s no legal protection for your personal assets -- you have no limit to your personal liability for business failures or mistakes. To limit liability, you have to choose a formal “corporate form.”


6) What’s the best corporate form?

There are three main types of corporate forms for businesses – “C” corporation, “S” corporation, and LLC or Limited Liability Company. Most small businesses choose to be either an “S” corporation or an LLC because these forms limit personal liability while still allowing profits and losses to be passed through to the owners’ personal tax returns.  Talk to your lawyer and/or accountant to see what corporate form is right for your personal situation.


7)  Where in New York can I register my business as a corporation?

You should visit the site of the Division of Corporations within the New York Department of State.  They’ll have answers to your questions.


8) Where can I obtain a Federal ID number?

If your business has employees, is a corporation or LLC, you’ll need a Federal Tax Identification Number. This is referred to by a number of initials – EIN (Employer Identification Number) or FEIN or FIN (Federal Employer Identification Number).

Even if you’re a sole proprietor, you may want to get an EIN. You’ll be asked for a tax ID number by companies you do business with, and it may be safer and more professional to give them your EIN instead of your social security number.

It’s easy and free to get an EIN.  First, you must complete IRS Form SS-4.  The IRS can assign you an EIN over the Internet or the phone. You can also obtain this form in Portable Document Format (PDF) at the IRS web site, or by calling 1-800-829-1040.


9)  Do I need a State ID number?

States may assign you an identification or account number for various reasons. The usual are: corporation number, employer account number and certificate numbers for specific licenses.  Check with your Secretary of State’s office. A directory of all state Web sites can be found at www.StateLocalGov.net


10) What assistance is available for veterans?

The SBDC operates the Veterans Business Outreach Program to provide targeted training, counseling, and mentoring to help veterans and their businesses. In New York State, contact John Narciso, Regional Coordinator, toll-free at 1-877-875-VETS (8387).


11)  Do I need a Business License?

Most cities and countries require businesses to have business licenses. You may not need one for a home-based business. Check with your local city and county governments.  States also require licenses or certification to engage in certain types of businesses or professions, such as contractors, real estate agents, beauticians, optometrists.  Permits are required for particular actions, such as construction and building permits and permits for special events. Permits are usually granted by local or county authorities.


12)  What’s a Resale License?

A resale license enables a company to purchase goods or materials for manufacture or resale without paying sales tax – because the ultimate consumer pays the tax. Each state has its own requirements and terminology. Some states don’t require a license – just a signed statement of intent to resale goods.


13)  What’s a ‘DBA’?

If you use any name other than your own name, you’ll need to file a “doing business as” or fictitious business statement, usually with your county government. This enables the public to know who’s actually operating a company.