Q.How can I get my business certified as minority or women owned?
A. Federal, state and local government agencies as well as large private sector corporations have different eligibility requirements and application processes for certifying your business. The common denominator is that the business MUST be at lease 51% owned and controlled by one or more individuals who are eligible for certification. Consult your target customer to determine which certification(s) they accept. Then, learn the requirements and rules to determine if you are eligible to apply.
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Q.What legal structure should I choose?
A. Choosing the legal structure for your business depends on several factors including formation requirements, liability issues, tax and succession-related concerns. Common business entities are sole proprietorships, partnerships, C-corporations, S-corporations or Limited Liability Companies (LLC). For information on each type of company, you can find information at SBA (www.sba.gov) or Oregon's Corporate Division (www.filinginOregon.com). It is best to consult with an accountant and/or attorney to choose the appropriate legal entity for your business.
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Q.What is the difference between an employee and an independent contractor?
A. The major factors to consider in deciding whether a worker is an independent contractor or an employee fall into three main categories namely; behavioral control, financial control and relationship of the parties. Usually a worker is considered an employee only when the business has the right to direct and control the worker. Typically, if you have significant investment in your work you may be considered an independent contractor. If a worker receives health insurance or company paid retirement such arrangement would justify an employee/employer type relationship. Please refer to the IRS Form SS8 or contact the IRS directly when in doubt. It is worth noting that in the State of Oregon, there are three similar but not identical definitions: Federal IRS; Oregon Department of Revenue; and Worker's Compensation Insurance. Check all three.
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Q.How do I find a good attorney?
A. To find a good attorney, it may be wise to talk with several prior to making a selection in order to make sure that there is a good fit between the business owner and the attorney. Generally you want to get an attorney that is familiar with your industry. It is advisable to inquire up front about the rates for the services provided. The business owner may also wish to seek references from other business owners who have used the services of a given attorney.
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Q.How do I find and retain quality employees?
A. Many small businesses hire individuals they know or those referred to them by friends and family members. To hire specialized employees, small businesses might work with a staffing agency, headhunter organization, online resume database or simply take out an ad in the classifieds. Retaining employees after hire is very important because of the costs associated with turnover. Employees will stay at their jobs if they are adequately compensated and challenged by their work. For more information on finding and retaining quality people, contact your local SBDC.