New Business 

Starting a business can be an exciting, yet overwhelming exercise, but REDI and its partner organizations around Maryland are here to help! Whether you need guidance on drafting your business plan or information on obtaining a building permit, many resources exist to help you successfully open your business.

The following information is just the tip of the iceberg, so contact our office at admin@rockvilleredi.org or (301) 315-8096 for resources tailored to your needs.

BUILD THE FOUNDATION

1. Develop Business Plan

A business plan is a crucial document outlining the route you intend to follow and is a key part of your pitch to investors, partners, and lenders. The plan displays your knowledge of the business including the concept, competition, financials, management structure, and marketing strategy.

• Attend a workshop: the Maryland Women’s Business Center regularly offers its “Elements of Entrepreneurship” series, which prepares aspiring entrepreneurs for what’s needed to start a business and develop a business plan.
• Identify the key components: the Small Business Administration (SBA) provides sample sections, templates, and tips to help you get started.

2. Determine Business Structure

The next step in establishing a business is to determine the most appropriate operational structure (e.g., sole proprietorship, partnership, corporation, and limited liability company). Each structure has its own tax implications and legal liability; therefore, it is recommended that you consult with an attorney, accountant, business consultant, or other professional before deciding which structure is best for your business.

• Know the structure types: the SBA provides descriptions along with the advantages and disadvantages of each.

3. Explore Financing Options

Without the necessary funding, even the best ideas won’t succeed. It’s important to spend time researching the various public and private options available.

• Discover your options: the SBA provides information on various sources available nationwide.
• Learn the local landscape: REDI and other regional organizations offer financing for target industries in Maryland.
• Connect with an experienced business consultant: Maryland Women’s Business Center offers free business counseling and additional funding resources. Business counseling is available in three languages—English, Spanish, and French.

CHECK THE RULES

4. Register Business Name and Tax Accounts

Choosing and registering your business name is a key step to legally operating a business, while various taxes may be levied on businesses at the city, county, state and/or federal levels.

• Select a name: Maryland Business Express, operated by the State Department of Assessments and Taxation, handles registration for your business name and structure.
• Create a federal account: the Internal Revenue Service handles federal tax information, including a Federal Employer Identification Number (EIN).
• Create a state account: the Comptroller of Maryland handles local, county, and state tax information.

5. Complete Employer Responsibilities

Hiring employees requires business owners to register as an employer, pay additional taxes, and obtain workers’ compensation insurance among other items.

• Comply with key regulations: the SBA provides a helpful guide to hiring your first employee.

6. Obtain Necessary Business Licenses

While a Maryland business license is required for most businesses, additional licenses may be necessary for your industry.

• Learn the requirements: Maryland Department of Labor’s Division of Occupational and Professional Licensing is the source for business licensing.

MAKE YOUR MOVE

7. Select a Location

Finding a space suitable for your needs is an exciting and important part of the process. Factors to consider include access to clients and customers and future growth needs.

• Know the market: REDI staff can conduct personalized searches for available space in Rockville, while providing preliminary information on zoning.

8. Obtain Necessary Building Permits

If you intend to do any construction or renovations to your location, permits from the City of Rockville will be required.

• Understand the regulations: the City’s Development & Zoning department handles development and zoning.
• Begin the permitting process: the City’s Permits & Inspections department handles permits, licenses, and inspections.

ADDITIONAL INFORMATION

• Visit the Montgomery County Business Center for a wealth of resources to help start and grow your business.
• Consider attending the Maryland Women’s Business Center’s seminar, Elements of Entrepreneurship.
• Discover more business resources from the State of Maryland.

We’re here to help! Give our staff a call at (301) 315-8096 and we’ll be happy to point you in the right direction.