Small business grants are available from your state government’s department of commerce, and they are usually easy to apply for. To apply for a small business grant, you will need to know your business structure. Is it a sole proprietor, general partnership, limited partnership (LP), foreign limited partnership, limited liability partnership, foreign limited partnership, limited liability partnership (LLP), foreign limited liability partnership, non-profit corporation, foreign non-profit corporation, limited liability company (LLC), foreign limited liability company (LLC), corporation, subchapter “S” corporation, or foreign corporation?
It’s helpful to know what these terms mean, so that you know what steps you need to take to get small business grants. These terms are very general. Do your research so that you know what tax codes apply to you. You’ll need to know what you are doing before you apply for a small business grant.
Sole Proprietorship: You are personally liable for the company. You put your own property and assets at risk in this business venture.
General Partnership: You and others each have a stake in the company and co-own the company’s assets.
Limited Partnership: This is like a general partnership or a sole proprietorship, except that there are limited partners (individuals who invest in the company but have nothing to do with its day to day operations).
Limited Liability Partnership: Often used by attorneys and accountants, this business format shields partners in the firm from liability. This type of partnership may vary from state to state.
Nonprofit Corporations: This type of business can’t issue shares in the company and can’t pay dividends.
Besides knowing what type of business you are starting, you’ll also need to make sure that the name you have chosen for your business is not currently being used. You can check with your state, but not all company names have to be registered with the state, so you must do a thorough check on your own. Use the internet and state telephone directories. After finding a name, register it with the Secretary of State or your state’s Corporation Commission.
Depending on the type of your business you are going to begin, you may need special certification or licensing from the state. For example, auto dealerships often require special licensing. Look into what it takes to get licensed, and the cost of licensing. It will be helpful to know this information when applying for small business grants or loans.
Next, you need to know about your employees. How many will you need? Will they be part-time, full-time, or some of each? Will you provide them with health care? Will your employees need a lot of training or certification? Will you have an apprentice program?
Where will your business be located? In an incorporated or unincorporated part of the state? Inside your home, or in a commercial building? Is your company subject to environmental regulations? Will your company play or incorporate copyrighted music? As you can see, there are many questions to be resolved before a grant application.
Some state governments don’t offer small business grants, but do have small business loans. Some states offer free business counseling and help with writing a business plan, marketing, and training. Find out exactly what is available in your state, and take advantage of the help.
By Clint Hunter