New business checklist
q Choose an appropriate legal structure for your business
Check with your accountant and attorney for help in choosing the best structure for your business. Check with your secretary of state for information on how to establish your legal structure.
q Comply with federal, state and local requirements.
Below is a non-inclusive checklist of issues you should consider. This checklist is provided as a general guideline and should not be used to replace advice from your attorney or accountant.
Your Business (corporation, LLC, partnership, sole proprietor)
q First meeting of directors/shareholders should be held immediately.
q Election of new directors and appointment of officers.
q Adoption of Bylaws.
q Establish a business bank account. The bank will ask for your businesses EIN (employer identification number)
q What officers are authorized to sign checks?
q Trade name - Are you going to do business under a name other than corporate name? If so, contact the Office of the Secretary of State.
q Protect your ideas - Contact the Office of the Secretary of State and the U.S. Patent and Trademark Office for information on state and federal trademarks and copyright.
q Buy-Sell Agreements between shareholders.
q Is this a small corporation? Are you going to apply for "S" corporation status? Contact the Internal Revenue Service.
q Securities laws applicability - Are you going to sell stock? See your attorney.
Business Plan
q Business plan (see business plan in our web site)
q Description of the business
q Marketing plan
q Financial plan including a budget and cash flow projections
q Management plan
q Bookkeeping system and accounts
q Review the tax implication of the entity you are using for your business with your accountant
q Obtain your federal tax identification number from the IRS
q Obtain your state tax identification number from the Colorado Department of Revenue.
Federal, state, and local taxes (visit with your accountant)
q Federal withholding
q Federal unemployment
q State withholding
q State Workmen's Compensation
q State & Local Sales Tax - Contact City Hall
Selling your product
q Clearly describe your product
q Identify your market in detail, specifically as possible
q Develop a marketing plan as part of your business plan
q Identify how you going to distribute your product
q Develop an advertising and sales plan as part of your marketing plan
Local regulatory environment
q Zoning
q City/County business licenses
q Special licenses for certain kinds of business - contact your local City Hall
q Liquor - obtain liquor license from City Hall
q Food service - contact local/state health department
q Public accommodations - contact health department
Insurance
q Liability
q Fire and Premises
q Auto
q Glass
q Business interruption
q Crime
q Officer and Director liability
q Products liability
State regulatory environment
q Check with the secretary of state to see if your businesses listed under state regulated businesses
q If your business will sell or serve liquor - contact Department of Revenue
q Check to see if your business is regulated by the Public Utilities Commission (PUC)
q If your business will buy or sell wholesale - contact Department of Revenue
Sate regulated businesses
q Check the Secretary of State web site for a list of types of business falling under state regulatory agencies. http://www.sos.state.co.us
Federal regulatory environment
q Minimum wage laws - Do you know how much you have to pay your employees?
q EEO - Anti-discrimination laws may affect your business.
q ADA - Have you compiled with the Americans with Disabilities Act?
q Contact OSHA and the state department of public health if:
o your business generate hazardous waste or materials
o your business will generate smoke or air pollution
o your business will discharge industrial waste into the water supply
o your work environment involve hazardous conditions which could cause injury or death to employees
q If your business involves the sale or use of firearms, explosives or fireworks, contact your local fire department of the Bureau of Alcohol, Tobacco and Firearms.
General management
q Identify the specific responsibilities and chain of command for the key individuals involved in your business
q Develop standard contracts for the sale of your products and for the purchase of materials (consult with your attorney)
q Hiring employees - Employee Eligibility Verification pursuant to the Immigration "Reform and Control Act of 1986 - Contact Immigration and Naturalization Service.
q Independent contractors or employees - contact your attorney and accountant regarding the tax and liability impact of each type of personal service.
q Develop employment contracts and job descriptions for key position in your business include:
o “non-compete” agreement for key employees
o “non-disclosure” agreement
o Life insurance on key employees.
o Employee fringe benefits - vacation, sick leave, military leave, health an disability programs, automobiles or auto allowances, and other perks
o Retirement plans
o Stock options
q Identify how you will protect your of trade/business secrets