tomah entrepreneurial ecosystem

Tomah Entrepreneurial Ecosystem

Innovation

Talent

Small Business Start-Up KitProvided by the Greater Tomah Area Chamber of Commerce

901 Kilbourn Ave Tomah, WI 54660 | 608.372.2166 | TomahWisconsin.com

Financial Capital Business

Plan

Chamber ofCommerce

Government

Advocates

Welcome to Tomah!

Greater Area Tomah Chamber of Commerce Page | 2

Entrepreneur and small business development are vital to the success of economic development in Tomah and Monroe County. We believe that entrepreneurs are crucial for a thriving community and economy. The investments they create are immeasurable.

Our economic system is based upon free enterprise and the right of each person to take the risk, follow a dream, and open his/her own business. The enclosed information, compiled by the Greater Tomah Area Chamber of Commerce, is designed to answer many of the questions that arise when one begins the process of opening a new business.

Owning and operating a business can be challenging. It requires dedication, patience, a variety of skills, and of course, investment. We have compiled this information to support the desire of entrepreneurs to follow their dreams. Please take the time to read the material and use it to your advantage. Knowing how to handle the challenges of opening your own business and knowing yourself is imperative to the success of your business.

The Greater Tomah Area Chamber of Commerce believes in the ecosystem of our economy. When businesses of all types band together towards the goal of strengthening our community, everyone has the opportunity to grow.

In the event this information leads to additional questions, please contact the Greater Tomah Area Chamber of Commerce.

We ask for your help in identifying additional information that should be added to this guide. Share your suggestions! The more information we can provide, the better we may assist you and the entrepreneurs who follow.

Best of luck,

Tina M. ThompsonCEO901 Kilbourn Ave | Tomah, Wisconsin 54660

Welcome to Tomah One Year Timeline For Entrepreneurs The Business Plan Determining Cash Needed To Start A Business Projecting Income Financing Information Local Financing Resources Procurement Forming Your Business Four Basic Forms That A New Business Can Take State and Local Issued Licenses Building/Zoning (Permit Information) Restaurants, Taverns, Wineries, & Breweries Health Permits State of Wisconsin Permits Trade Name Registration Tax Information Utilities Labor & Safety Regulations Resource Directory

NOTICE: The information contained within this publication is given for informational purposes only and should not be construed as legal, professional advice, or assistance.

Laws and information contained herein are from multiple sources and are subject to frequent changes. While this publication will be updated annually to capture those changes, you should consult a licensed professional when dealing with legal and financial matters regarding your specific situation. You should also verify the other information contained herein to be sure that you have the most current and accurate information.

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Starting your own business is not something to be rushed into. Careful, advanced planning can ensure the success of your venture. Below is a suggested one-year plan.

One Year Before Startup

• Decide what business you want to start. Be specific in your business definition.• Define your ideas in writing. Determine exactly where you want to go. • Assess the impact on your family and personal life. How will this affect your relationships? Will your family support the use of finances and time?• Begin research. You must determine if there is a need for your product/service. This research can be preformed by students, professionals, or even on your own.• Build your personal skills by taking formal management/business courses if needed. Contact Western Technical College at 608.374.7700 for more information.• Contact the Wisconsin Department of Workforce Development at https://dwd.wisconsin.gov/ for information on employment and development concerns in the state of Wisconsin.

Six Months Before Startup

• Determine the focus of your business. What do you want to specialize in? It is easier to excel in one area than at many.• Start writing your business plan. (See page 6 to begin.)• Define your target markets. Who is your intended clientele? Who should you aim your advertising towards?• Research business and trade organizations. Most areas of business have agencies and organizations set up to facilitate business. Take advantage of what these groups have to offer. • Start looking for the best location for your business. How much space do you need? Conduct the search on your own or contact a real estate agent. • Determine your cash needs. How much money do you need for start-up? What will your monthly variable and fixed costs be? What is your break-even point? These are all questions that must be answered. You must estimate your cash flow. • Review preliminary financial objectives. How much profit do you expect to make? Are you planning on making investments? What is your intended cash flow? • Start building relationships with local lenders. Talk to lenders to learn what current borrowing requirements are. How much will you need to borrow? Do you have an adequate start up investment? Will you need to have an SBA (Small Business Administration) guarantee or look for alternative financing?

Four Months Before Startup

• Name your business. Be careful in deciding on a name and be aware that someone may

Timeline


One Year Timeline For Entrepreneurs

already be using the name. Have a few back-up ideas. You can check to see if a name is being used by searching corporate records for the state of Wisconsin at https://www.wdfi.org/ apps/CorpSearch/Search.aspx• Make a final selection of the business location. Make sure that the location you choose is within your budget and also fits into your business plan. Cheaper rent may cost you more in the long run. Remember: Location, location, location.• Select outside advisors. This will be a very hectic time. It will be beneficial to have people you can call on to listen to your ideas, problems, and plans. These people should be able to provide you with guidance, constructive criticism, and feedback. They should be people experienced and knowledgeable in business.• Set up a network of mentors. Select people who can help you by giving you insight and new ideas.• Choose your business’ legal form. Will you be a partnership, sole proprietorship, or corporation? A legal form should be chosen very carefully as it can impact your business in many ways.• Set up bookkeeping, accounting, and office systems. How are you going to operate your office? Will you need to hire a bookkeeper/bookkeeping firm? If you are going to keep your own books, make sure your skills are adequate. • Seek outside demographic information on your targeted customer base. Gather secondary information.• Continue working on your business plan.• Define your brand.• Develop a logo.

Three Months Before Startup

• Decide on your pricing strategy. After determining your variable and fixed costs, decide what your markup rate will be. You will also need to consider demand and competitive factors in setting your price.• Forecast sales. • Determine your company’s employee needs. How many people do you need on your staff? This is important to decide as it effects your requirements for insurance, cash flow, etc.• Project your cash flow. Write out an estimated statement of all revenues and expenditures. This statement should cover one calendar year. Also project your net cash flow for the entire year.• Set up your office, display areas, etc. Have everything exactly as you want it. The last few days before opening are not the time to do this. The look of your store or office sets the tone of your business. You should put thought and time into it.• Continue working on your business plan.

Two Months Before Startup

• Prepare your marketing plan. • How are you going to market your product/service, and how much will marketing cost? • Are you going to use publicity? • Are you going to use paid advertisement?


Timeline


Timeline• You must decide how you will go about introducing your business to the public.• Determine advertising, promotion, and public relations strategies.• Get your business license. (See Occupational Tax)• Review non-financial objectives (public image, legal questions). • Make a final selection of the business location. Make sure that the location you choose is within your budget and also fits into your business plan. Cheaper rent may cost you more in the long run. Remember: Location, location, location.• Select outside advisors. This will be a very hectic time. It will be beneficial to have people you can call on to listen to your ideas, problems, and plans. These people should be able to provide you with guidance, constructive criticism, and feedback. They should be people experienced and knowledgeable in business.• Set up a network of mentors. Select people who can help you by giving you insight and new ideas.• Choose your business’ legal form. Will you be a partnership, sole proprietorship, or corporation? A legal form should be chosen very carefully as it can impact your business in many ways.• Set up bookkeeping, accounting, and office systems. How are you going to operate your office? Will you need to hire a bookkeeper/bookkeeping firm? If you are going to keep your own books, make sure your skills are adequate. • Seek outside demographic information on your targeted customer base. Gather secondary information.• Continue working on your business plan.• Define your brand.• Develop a logo.

Three Months Before Startup

• Decide on your pricing strategy. After determining your variable and fixed costs, decide what your markup rate will be. You will also need to consider demand and competitive factors in setting your price.• Forecast sales. • Determine your company’s employee needs. How many people do you need on your staff? This is important to decide as it effects your requirements for insurance, cash flow, etc.• Project your cash flow. Write out an estimated statement of all revenues and expenditures. This statement should cover one calendar year. Also project your net cash flow for the entire year.• Set up your office, display areas, etc. Have everything exactly as you want it. The last few days before opening are not the time to do this. The look of your store or office sets the tone of your business. You should put thought and time into it.• Continue working on your business plan.

Two Months Before Startup

• Prepare your marketing plan. • How are you going to market your product/service, and how much will marketing cost? • Are you going to use publicity? • Are you going to use paid advertisement?

• You must decide how you will go about introducing your business to the public.• Determine advertising, promotion, and public relations strategies.• Get your business license. (See Occupational Tax)• Review non-financial objectives (public image, legal questions). • How do you want the public to see your business? • Are you a family establishment or geared more toward adults? • What form is your business taking? • Do you have all legal documents needed?• Prepare a preliminary balance sheet. • Secure necessary financing. Whether through a private lender or through other sources, you must obtain the necessary amount of start-up capital.• Secure insurance coverage if applicable. • Complete improvements to your facility.• Start your hiring process. • Refine your business plan.

One Month Before Startup• Fine tune your cash flow budget.• Join the Greater Tomah Area Chamber of Commerce.• Prepare for your grand opening/ribbon cutting. The Tomah Chamber and Visitor’s Center provides ribbon cuttings and advertising for members. Be creative but practical.• Review your final checklist.• Hire and train your staff. • Make sure everything works. It is better to find out that your equipment does not work in advance. In that case, you can make any necessary repairs and be ready to open your doors on time.• Implement marketing, promotion, and opening plans. This will be a good time to start advertising in local newspapers, radio, and television if your budget permits. Remember: Word of mouth is your most powerful publicity! It’s also the least expensive. Spread the word. • Develop your website.• Develop your social media pages.

Startup And After

• Budget your time. As a new business owner your time will be precious. Schedule your time wisely. It is important to get the maximum out of the time you have available. • Continuously update and evaluate your product/service. What is good about your product/ service? What sets it apart from competition? Eliminate the problems as much as possible. If people patronize your business for the original concept, improving it will only increase patronization. • Listen to your customers, advisors, and vendors. The customers are your cash flow. It is important to gather their opinions and put them to use. Their ideas can be helpful in updating your product. Listen to your advisors, you asked them to advise you for a reason, and listen to your vendors. These vendors have been in the business much longer than you have. They can possibly provide you with money-saving or money-making ideas.


Timeline

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• Check cash flow budget against actual performance.• Maintain good communications with your bankers and vendors. By keeping the lines of communication open you are helping yourself. Should you need their help in the future, you are more likely to receive it.• Continue to improve the 5 C’s of credit. (Character, Collateral, Capacity, Capital, and Condition)• Work with investors. Make sure you are in contact with them. Make sure that you understand the conditions of your repayment. When are payments due? Make sure you fulfill all obligations to investors. You may need to call them again someday.• Check cost of living budget. If you are drawing money from the company for living expenses, be sure to take only what is necessary. Stick tightly to your budget.• Consider delaying your official grand opening/ribbon cutting until you’ve been in business for a couple of weeks. Doing so may ensure that you have worked the “bugs” out and that all is running smoothly.


Timeline

Being a part of the Tomah Chamber of Commerce has been a joy for Gordy’s Market. Whether it’s a ribbon cutting celebrating the opening of our doors, an opportunity to help the community by sponsoring the fireworks , or a Business After 5 gathering, the Tomah Chamber has kept me up to speed on what’s happening in my city. I love the network of people that I have met through the chamber and the opportunities it has opened for Gordy’s. The Tomah Chamber looks first to help local businesses and that’s why we (Gordy’s) love being members because of their dedication to economic growth in our community and striving to make Tomah an unforgettable destination. - Matt “The Gordy’s Guru”

A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. A good business plan provides specific and organized information about your company and how you will repay borrowed money. It is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals. The following outline of a typical business plan can serve as a guide. You can adapt it to your specific business. Breaking down the plan into several components will help make drafting it a more manageable task.

Cover Sheet

• Identify the business and document. • Identify the location and telephone numbers of the business or where the principals can be reached. • Identify the person who developed the Business Plan.

Statement of Purpose

• Who is asking for money? • How much money is needed? • What is the money needed for? • How will the funds benefit the business? • Why does this loan or investment make sense? • How will the funds be repaid?

Section One: The Business

Business Description • Give a detailed description of the business and its goals. • Discuss the ownership of the business and the legal structure. • List skills and experience you bring to the business. • Discuss the advantages you and your business have over your competitors.

Product/Services • What are you selling? • What are the benefits of what you are selling? • How do your products fit a need or differ from competition? • Is your product unique or state-of-the-art? • What makes your product desirable?


BusinessPlan

The Market and Your Promotion • Identify your customer. • Identify the customer demand for your product/service. • Identify your market, its size and locations. • Is your market seasonal? • How would you characterize your markets? (Growing, steady, declining?) • Is this a competitive market? • How can you expand your market? • Explain how you are prepared to handle sudden growth and declines? • Explain how your product/service will be advertised and marketed. • Explain the pricing strategy. • Explain your competition. • How will consumers differentiate you from your competition? • What are their strengths and weaknesses? • Why would people buy from you? • How much would your customers be willing/able to spend with you? • How often would people buy from you? • What is your plan for attracting additional customers? • How will you reach your customers? • Will you be using technology? • What is your advertising schedule?

Location • Where are you located? • What are the physical features of your building? • Do you lease or own space? • Do you anticipate renovations and what are the associated costs? • Does zoning in your area permit this kind of business? • What are the businesses surrounding you? • Why did you pick this site?

Operations • Explain how the business will be managed on a day-to-day basis. • Discuss hiring and personnel procedures. • Discuss insurance, lease or rent agreements, and issues pertinent to your business • Account for the equipment necessary to produce your products or services. • Account for production and delivery of products and services.

Management • Who is the management of the business? • Explain personal histories of principals. • Explain your business background.

Greater Area Tomah Chamber of Commerce Page |10

BusinessPlan

• What education and experiences have you had to qualify you for this venture? • How have you prepared for the time, physical and financial demands for this venture? • What will your role be? • What role will other principals and managers have? • Who will make the financial decisions?

Section Two: Financial Considerations

Financial Management • Explain your source and the amount of initial equity capital. • Develop a monthly operating budget for the first year. • Develop an expected return on investment and monthly cash flow for the first year. • Provide projected income statements and balance sheets for a two year period. • Discuss your breakeven point. • Explain your personal balance sheet and method for compensation. • Discuss who will maintain your accounting records and how they will be kept. • Provide “what if” statements to address alternative approaches to any problem that may develop.

Financial Data • Provide financial documents including sources and uses of funds. • Capital Equipment List • Balance Sheet. • Break-Even Analysis. • Projected Income Statement • Cash Flow Projections. • Owners Personal Financial Statement • Historical Records.

Section Three: Proposal

Financial Proposal • Thoroughly explain your proposal and financial request to your lender.

Concluding Statement • Summarize your business goals and objectives. Express your commitment to the success of your business. • Once you have completed your business plan, review it with a friend or business associate. • When you feel comfortable with the content and structure, make an appointment to review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.

Supporting Documents • Include any additional materials to support your request (blueprints, maps, photos, articles, industry studies, contracts, leases, letters of support, etc.)


BusinessPlan

Salary of Owner /Manager _______________ ______________All other salaries/wages _______________ ______________ Rent (building/equipment) _______________ ______________Advertising _______________ ______________Office Expense _______________ ______________Telephone and Fax _______________ ______________Internet Service _______________ ______________Other Utilities _______________ ______________Insurance _______________ ______________Taxes _______________ ______________Maintenance/Repairs _______________ ______________Legal/Professional Fees _______________ ______________Loan Payments _______________ ______________Miscellaneous _______________ ______________

Fixtures & Equipment ______________Decorating & Remodeling ______________Installation of Fixtures/Equip. ______________Starting Inventory ______________Deposits for Utilities ______________Legal/Professional Fees ______________Licenses & Permits ______________Advertising/Promotion for Opening ______________Other ______________

TOTAL ESTIMATE OF CASH NEEDED FOR START UP _______________

***To determine these amounts, get estimates from suppliers, contractors, professionals and/or government authorities to ensure accurate amounts.


CashNeeded

Determining Cash Needed To Start A Business

Revenue Year 1 Year 2 Year 3Gross Sales ________ ________ ________Less Returns/Allowances ________ ________ ________Net Sales ________ ________ ________

Cost of Goods SoldAdd: Beginning Inventory ________ ________ ________Purchases ________ ________ ________Shipping ________ ________ ________Labor ________ ________ ________Misc. Expense ________ ________ ________Less: Ending Inventory ________ ________ ________

ExpensesAdvertising ________ ________ ________Bank Fees ________ ________ ________Charitable Contributions ________ ________ ________Commissions ________ ________ ________ Credit Card Fees ________ ________ ________ Depreciation ________ ________ ________ Dues ________ ________ ________ Insurance ________ ________ ________ Maintenance ________ ________ ________ Mortgage/Rent ________ ________ ________ Office Supplies ________ ________ ________ Operating Expenses ________ ________ ________ Permits ________ ________ ________ Professional Services ________ ________ ________ Repairs ________ ________ ________ Taxes ________ ________ ________ Travel ________ ________ ________ Utilities/Telephone ________ ________ ________ Vehicle Expenses ________ ________ ________ Wages ________ ________ ________ Other ________ ________ ________ Total Expenses ________ ________ ________ Net Operating Income ________ ________ ________

Other Income ________ ________ ________Net Income Before Taxes ________ ________ ________Income Taxes ________ ________ ________Net Income After Tax ________ ________ ________


ProjectingIncome

When starting a business, one important consideration is where to obtain capital to back your venture. Most start-up businesses require a capital contribution by the entrepreneur, usually 20%. The remaining financing may be available from your local banks or may require private investors. There are several loan programs available to businesses, all of which require bank participation. Examples include the following SBA loans currently available.

SBA Guaranteed Loan Program 7(A). This program provides financing to small businesses through guaranteeing a percentage of the bank’s loan to the business. Eligible expenditures are for land and building, machinery and equipment, working capital, and some restructure of existing debt.

SBA 504 Loan Program. This program provides financing for small businesses through a low interest, fixed rate, and a long-term loan. The Small Business Administration takes a second line position behind the bank. Eligible expenditures are for land and building, long-life machinery and equipment.

CMV Growth Development Fund. The CMV Growth Development Revolving Loan Fund (RLF) is designed to foster growth in economic base activities that are the dominant force in affecting economic growth or decline in the Tri-county area of Crawford, Monroe and Vernon counties. The fund is targeted to manufacturers, tourism and selected service industries that create jobs. For further information, call 608.785.9396, email [email protected], or go to www.gomonroecountywi.com/#!incentives/cva3

Monroe County Revolving Loan Fund. The Monroe County Revolving Loan Fund is designed to promote local economic development by providing a source of long term, fixed rate, low interest financing for new and existing business projects that are located in Monroe County. For further information, call 608.785.9396, email [email protected], or go to www.gomonroecountywi.com/!#incentives/cva3

City of Tomah Revolving Loan Fund. The Housing Authority & the Community Development Program helps individuals and families who meet income and other eligibility guidelines to secure and maintain affordable, safe and decent housing in the City of Tomah. We are governed by a Board of Commissioners from our community that are appointed by the Mayor and confirmed by the City Council. The Community Development Program also promotes economic development and encourages new business start-ups and business expansions that create new employment/job opportunities. To assist businesses in this endeavor the Community Development Program administers a Business Revolving Loan Fund. For more information, call 608.374.7455 or go to www.tomahonline.com/index.php/dept/housing-community-development


FinancialInformation

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• Programs are also available for special loans or grants to women, minorities and veterans. Often your lending institution can assist with providing detailed information. The Tomah Chamber also has partners throughout the state that can provide financial and resource assistance to these groups.

All loan programs require that certain standards be met. A loan applicant must be of good character, show the ability to operate a small business successfully, and have a good reasonable amount of his/her own resources to invest to withstand possible losses. In addition, the following will likely be required: Credit Report Collateral adequate to secure the debt; list of collateral and its value Appraisals required on real property used as collateral Personal guarantees required of those persons (or companies) with 20% ownership Secondary collateral may be required Personal financial statements & financial statements of business (if applicable) Personal and/or business tax returns for last three years Business Plan


FinancialInformation

I am writing this letter as a personal reference for the Greater Tomah Area Chamber of Commerce. Over six months ago, B&B Electric Inc. started a location in Tomah, WI. We had spoken to the Chamber before our move and were very impressed with their hands on approach in helping new businesses in the area, so we immediately joined the Chamber.

The Chamber has been a great place for us to connect with other businesses and community members. For any new business to the area this is your opportunity to get your name out there. Being involved with a Chamber can be an intimidating aspect to joining. Specifically, Tina and her staff do an excellent job of welcoming new members to the Chamber and giving you the opportunity to get involved at the time of joining, as if you have always been a member.

We would like to thank the, Greater Tomah Area Chamber of Commerce, Tina and her staff. - Ben Trachsel, Sales & Marketing, B&B Electric Inc.

Tomah Banks

F & M Bank fmnetbank.com 608.372.21671001 Superior AveTomah, WI

Partnership Bank fbtomah.com 608.372.21311021 Superior AveTomah, WI

Timberwood Bank timberwoodbanks.com 608.372.2265110 W Veterans StTomah, WI

Tomah Credit Unions

Oakdale Credit Union oakdalecu.coop 608.372.3939110 W Badger DrTomah, WI

RIA Federal Credit Union riafcu.com 608.372.92771024 N Superior AveTomah, WI

Tomah Area Credit Union tacuonline.com 608.372.4736940 N Superior AveTomah, WI

Sparta Banks and Credit Unions

First Community Credit Union 1stccu.com 608.269.81211000 West Wisconsin StSparta, WI

State Bank Financial statebankfinancial.com 608.269.2111203 West Wisconsin StSparta, WI


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Through the State of Wisconsin’s Bureau of Procurement, learn how to become a registered vendor with the State of Wisconsin and its many agencies. Visit the VendorNet System at http://vendornet.state.wi.us/vendornet/default.asp for more information.


ProcurementDoing Business With The Government

Several people have asked me, “What does a company like Toro get out of its Tomah Greater Area Chamber of Commerce membership?” That’s a fair question, as membership in the Chamber is neither compulsory nor free. The Toro presence in Tomah is a manufacturing facility and distribution center. The Toro Tomah facilities don’t sell any product here and we don’t have any customers here. But we do employ a lot of people. Approximately 700 Toro employees call this area their home - and our employees want a vibrant downtown, good schools, affordable housing and access to great healthcare. Everyone wants to live in a nice area near plenty of stores and restaurants. Everyone wants their children to attend high-achieving schools, and to have easy access to hospitals and doctors. An effective Chamber of Commerce encourages all of this and more. And we do buy a lot of things locally. Toro purchases many services: like catering, electrical contracting, janitorial, information technology, construction, uniform rental and many others. Toro purchases food for meetings and small parts for maintenance and repairs. Toro needs access to local small business that can provide these goods and services in a timely and consistent manner. An effective Chamber of Commerce gives small businesses the tools they need to grow and prosper. When the Tomah area provides a livable city with a thriving business climate, a large company – like Toro – is able to attract employees and maintain its infrastructure. What does Toro get out of its Chamber membership? Quite a bit. - Dennis Coffey, Plant Financial Manager, The Toro Company

Deciding what form of legal entity your business will take is an important decision. This will have an impact on the future of your business including your protection under the law, and the rules and regulations (for example, federal and state taxes) that will apply to you. It is recommended that before you enter into any of these four forms of business that you contact an attorney, CPA, or other qualified individual. Speaking with someone informed about the legal entities of business will reduce the risk of mistakes in the business setup. You can probably do the necessary paperwork and procedures yourself, but it makes sense to leave it up to the professionals.

Four Basic Forms That A New Business Can Take: • Sole Proprietorship • Partnership (general or limited) • Corporation (C or S) • Limited Liability Company (LLC)

A sole proprietorship is usually owned and operated by one person. Under the law, it is not actually considered a legal entity. It is instead considered an extension of the person who owns the business. This individual has sole ownership of assets, but is also solely liable for the debts of the business.

A partnership can be formed in two ways. A general partnership is comprised of two or more individuals who join to start a business. Each person has proportional ownership of the business assets and proportional liability for business debts. Each person also has authority in running this business. A partnership agreement can be drawn up to alter each person’s particular liability. However, despite this document, creditors may collect from each and every member of the partnership (this may include personal assets).

A limited partnership is made up of one or more general partners as well as one or more limited partners. Limited partners contribute capital and share in profits/losses. These limited partners, however, take no part in the running of the business and are not held liable for the organization’s debts. Whether taking part in a general or limited partnership, it is advisable that you draw up a partnership agreement. This document will detail each partner’s rights and their responsibilities. Partnerships are required to file both federal and state income taxes. While the partnership is not typically taxed, each partner reflects charges for the partnership on his/her personal tax returns.

A corporation is an entity, which must be approved by the state of Wisconsin through the Department of Financial Institutions. A corporation must file federal, state, and local taxes on its operation. One advantage to a corporation is the protection from liability afforded to shareholders. However, when an organization is small, creditors may require personal guarantees of pre-dominate owners. Another advantage to the corporation is the ease of raising capital through the sale of common or preferred stock. A disadvantage of the corporation is that the organization’s income will essentially be taxed twice (once on the business’s corporate tax return and again on the shareholders,


FormingYour Business

personal income tax returns for any dividends paid to the shareholders). There are two types of corporations: C and S. The distinctions between an S Corp and a C Corp can be very complicated and very dramatic. It is important that you consult a professional prior to filing for either status. To incorporate your business you must file paperwork with the State of Wisconsin. Once incorporated, you will be required to register and pay fees annually.

The limited liability company (LLC) is a form of business entity that includes some of the characteristics of the other business entities. The owners are known as members, and the LLC shields its members from personal liability like a corporation; however, the profits generated by the business pass through the business entity and are taxed at the members’ individual levels. As with all formal business entities, it is created by Wisconsin’s Department of Financial Institutions by filing the necessary paperwork and fees.

An attorney can handle the creation of your business entity for you. In addition to creating your business, there are many additional activities that must be performed, as well. An attorney will advise you and assist you concerning those other requirements, as well.

More Information can be found by contacting the Wisconsin Department of Financial Institutions at:

201 W Washington Avenue, Suite 500Madison, WI 53703Telephone: (608) 261-9555Fax: (608) 261-7200

https://www.wdfi.org/corporations/


FormingYour Business

Many businesses are required to register or obtain a license from the State of Wisconsin. If you are required to obtain licensing, you will need to contact the state of Wisconsin’s Department of Safety and Professional Services at http://dsps.wi.gov/Home or:

Post Office Mailing Address: State of Wisconsin Department of Safety and Professional Services PO Box 8935 Madison, WI 53708-8935

Street Address: Department of Safety and Professional Services 1400 East Washington Avenue, Room 112Madison, WI 53703

Phone: (608) 266-2112(877) 617-1565

Email: [email protected]


LicensesState & Local Issued Licenses

Once you have chosen a tentative location for your business, contact the zoning department to determine the permitted uses of that location. There might be special restrictions on that area.

The Office of Zoning Administration can help you determine if your location and type of business are in compliance with ordinances. You will be required to submit your business plans to the zoning office to determine if the business complies/can be adapted to comply with the following: 1. Current zoning classifications 2. Building setbacks 3. Off-street parking availability and service entrance requirements 4. Buffer yards or required screening 5. Lot area minimum 6. Sign regulations

If your business will be located within the Tomah City limits: Zoning Administrator/Building Inspector: Shane Rolff City Of Tomah 819 Superior Avenue Tomah, WI 54660 Ph: (608) 374-7429 Email: [email protected]

If your business will be located outside the Tomah City limits: Monroe County Planning and Zoning Department 14345 County Highway B, Suite 5, Sparta WI 54656-4509 FAX: 608-366-1809 Administrator-Alison Elliott, 608-269-8939


PermitInformation

Building/Zoning

Health Permits

If your business is to involve food processing, handling, storage, or distribution, you must obtain permits from the State of Wisconsin.

Licensing and Inspection

The DATCP (Wisconsin Department of Agriculture, Trade and Consumer Protection) licensing process is designed work like this: • Plan review conducted as required (building review, equipment review, and process review) • Submit license application and license fee • Schedule License inspection with Sanitarian • Onsite inspection of facility by Sanitarian

Your facility should be ready for licensing prior to scheduling your official license inspection with the Food & Dairy Sanitarian. Your facility should be in compliance with any relevant codes and operators should have current licenses and certifications if needed. If your facility is determined to be not ready for licensing by the Sanitarian, the license fee will be forfeited and you will need to bring your facility into licensable condition and re-apply by sending in another license application and fee.

E-mail questions to a Licensing Specialist at [email protected] or call (608) 224-4923. Your Licensing Specialist will be able to answer your questions more specifically and will assist you through the licensing and inspection process. Once you have completed the licensing process and have been inspected, you will then be able to make food and sell to the general public.

FDA Facility Registration: All food firms, with the exception of retail, must register with FDA, and reregister every two years. You may complete (re)registration online: http://www.fda.gov/Food/GuidanceRegulation/FoodFacilityRegistration/default.htm You may also request paper forms by phone, at 1-800-216-7331 or 301-575-0156. Registration was first required by the Bioterrorism Act of 2002.


PermitInformation

Restaurants, Taverns, Wineries, & Breweries

BreweriesExcise Tax, Brewer, Fermented Malt Beverage, Wisconsin

Description: License required to brew fermented malt beverages in Wisconsin for resale or if you intend to sell fermented malt beverages to another Wisconsin wholesaler or Wisconsin retail business.

License Type: Original

Duration: The BTR (Business Tax Registration) certificate is renewable every two years. Fees: Persons who want a brewer’s license must hold a Business Tax Registration (BTR) Certificate. There is no charge for the license. However, there is a one-time $20 charge for the BTR certificate. The certificate is renewable every two years for $10. Prerequisites: • Security (bond, cash, certificate of deposit) must be on file at the Department or Revenue. • You must obtain the following: 1. Federal Basic Permit - Contact the Regional Regulatory Administration, Bureau of Alcohol, Tobacco & Firearms, 300 S Riverside Plaza Suite 310, Chicago, IL 60606 2. Federal Occupational Tax Stamp - Obtain from the Federal Bureau of Alcohol, Tobacco & Firearms 3. Municipal Wholesale Beer License - Obtain this from the Wisconsin municipality in which you intend to establish your place of business. Additional Information: You must obtain a separate permit for each location that will be brewing, selling, shipping, or invoicing fermented malt beverages. Submit a separate application for each location. Must comply with the federal regulations on labeling. Instructions: Application for Registration Instructions (at the end of this document)

Application Form(s): Application for Business Tax Registration (at the end of this document)

Wisconsin Statutes: Brewers (S. 125.29)

Administrative Rules/Codes: Fermented Malt Beverages (Revenue Tax 7)

Home Page: http://www.revenue.wi.gov | E-mail: [email protected] | Phone: (608) 266-2776Mail Address: PO Box 8902, Madison, WI 53708-8902 | Street Address: 2135 Rimrock Road, Madison, WI 53713

Agency Web Site: Department of Revenue


PermitInformation

State of Wisconsin Permits

Wineries http://docs.legis.wisconsin.gov/statutes/statutes/125/III/53

Excise Tax, Liquor, Winery (includes cider producers in Wisconsin)

Description: Any person, sole proprietorship, partnership, limited liability company, corporation or association who wants to handle liquor at the wholesale level in Wisconsin must obtain a permit from the Wisconsin Department of Revenue. Persons wanting a beverage permit must hold a Business Tax Registration (BTR) Certificate.

License Type: Original

Duration: The BTR certificate and liquor permits are valid until canceled by the permittee or revoked by the Department.

Fees: The fee for a wholesale permit for Wisconsin wineries is $200 for a 2-year term. Also, the BTR certificate and liquor permits are issued by the Registration Unit in Madison, (608) 266-2776. There is a one-time $20 charge for the BTR certificate. This certificate is renewable every two years for $10.

Prerequisites: Persons who want to obtain a beverage permit or license from the Department of Revenue should also contact their municipal clerk to see if there are any licenses they must obtain from the municipality. Persons who are responsible for paying the liquor tax must have security (e.g., cash, bond) on file with the Department. The amount of security is equal to twice the person’s estimated maximum monthly liquor tax but not less than $1,000 nor more than $100,000.

Additional Information: For additional information see the Wisconsin Department of Revenue’s Frequently Asked Questions.

Instructions: Application for Registration Instructions (at the end of this document)

Application Form(s): Application for Business Tax Registration (at the end of this document)

Wisconsin Statutes: Winery permit (s. 125.53)

Administrative Rules/Codes: No administrative rule(s) or code(s) apply.

Contact: Customer Service Bureau | Home Page: http://www.revenue.wi.gov | E-mail: [email protected] Phone: (608)266-6702 | Mail Address: PO Box 8902, Madison, WI 53708-8902

Street Address: 2135 Rimrock Road, Madison, WI 53713 | Agency Web Site: Department of Revenue


PermitInformation

State of Wisconsin Permits

The name of a business or product, a label, logo, or form of advertisement are some examples of items that may be registered with the Department of Financial Institutions. The registration is not required, but is a good way to notify the public of the use of a certain name or mark. The filing fee is $15, and the registration remains on record for 10 years. A registration may be “assigned” to another party during the 10 year period, and may be renewed before the 10 year time period has expired.

Trademark and Tradename Database Search

Search the Wisconsin trademark and tradename database: https://www.wdfi.org/apps/TrademarkSearch/Search.aspxEmail: [email protected] Phone: (608) 266-8915


PermitInformation

Trade Name Registration

”“I wanted to write this letter to thank the Chamber of Commerce for a

job very well done. I have spent most of my business life in Tomah without taking advantage of the huge resource that it offers. I am so pleased to now be a part of an organization that is so organized and well connected to the business community. My advice to any business in Tomah would be that the dues for belonging to the Chamber of Commerce in Tomah, is a small price to pay for the interaction with other members which reaches far beyond the Tomah horizon. Opportunities are boundless and I expect we will see significant growth in our business largely due to your efforts. I look forward to our success together.

- Steve Walker, Walker Construction

Seller’s PermitDo you need a Sellers Permit?A seller’s permit is required for every individual, partnership, corporation, or other organization making retail sales, leases, or rentals of tangible personal property or taxable services in Wisconsin, unless all sales are exempt from sales or use tax.NOTE: A seller’s permit will not be issued to wholesalers, manufacturers and other businesses not making direct retail sales of tangible property or taxable services.

When should you apply? Apply for a seller’s permit at least three weeks before you open your business. If you buy an existing business, the seller’s permit cannot be transferred to you. You must apply for a new permit. If you applied for a seller’s permit before you opened your business but did not receive the permit at the time of opening the business, you are allowed to make retail sales of tangible personal property and taxable services. However, you are liable for the sales and use taxes and for keeping proper records from the date of opening the business.

Security May Be Required Before or after the Department of Revenue issues you a seller’s permit, it may require you to make a security deposit up to $15,000. If you do not make a security deposit as requested, the department may refuse to issue you a seller’s permit or may revoke your permit.

In determining whether or not security will be required and the amount of security, the department may consider the applicant’s payment of all taxes administered by the department and any other relevant fees. Security is most commonly requested when there has been a history of delinquent taxes associated with the applicant.

If a security request is made, the department will send a notice of the requirement and additional information about the calculation of the security amount. Included will be information about the types of security that can be deposited.

Any security deposit will be returned to you if for 24 consecutive months you complied with the sales and use tax law. Refer to sec. Tax 11.925, Wis. Adm. Code, “Sales and Use tax security deposits”.

Issuance of the Seller’s Permit After receiving the Application for Business Tax Registration and the security deposit (if requested), a seller’s permit will be issued to you by the department. You must display the seller’s permit in a prominent location at your place of business. If that is not a fixed location, it should be displayed or carried at the various events. A personal wallet copy will be sent with your seller’s permit to provide you with easy access to your permit number.


TaxInformation

Consumer’s Use Tax Certificate A consumer’s use tax certificate is required for every business that regularly purchases or leases taxable property or services for storage, use, or consumption in Wisconsin upon which sales or use tax was not paid. This certificate is not required if a business already holds a seller’s permit or use tax certificate. For additional information, see Wisconsin Use Tax fact sheet (https://www.revenue.wi.gov/taxpro/fact/usetax.pdf.)

Use Tax Certificate A use tax certificate is required for every out-of-state retailer who is not required to hold a seller’s permit, but is engaged in business in Wisconsin and making retail sales, leases, or rentals of tangible personal property or providing taxable services in Wisconsin.If out-of-state retailers have physical presence (nexus) in Wisconsin, they may be required to register and collect the Wisconsin tax. Further information can be found in Publication 201, Wisconsin Sales and Use Tax (https://www.revenue.wi.gov/pubs/pb201.pdf#page=5.)

How do I obtain a permit? You can register online at https://www.revenue.wi.gov/businesses/new-business/index.html.

What if I lose my seller’s permit? If you are a My Tax Account user, your seller’s permit is generally included in the list of letters displayed after you click on the “Mail” tab. You can print a copy of your permit without having to contact the department.You may contact the department to get a replacement by calling (608) 266-2776 or by writing to the Wisconsin Department of Revenue, PO Box 8902, Madison, WI 53708-8902.

For more information please contact:Wisconsin Department of RevenueTax Operations BureauPO Box 8902, MS 3-14Madison, WI 53708-8902Phone: (608) 266-2776

Email additional questions to [email protected]


TaxInformation

Electric Alliant Energy 800-255-4268 alliantenergy.com Oakdale Electric 608-372-4131 oakdalerec.com

Cell Phone BeMobile/Verizon 608-372-2221 bemobile.com US Cellular 608-372-0600 uscellular.com

Natural Gas WE Energies 800-261-5325 we-energies.com

Telephone, Internet & Cable TV Centurylink 800-201-4099 centurylink.com Charter Communications 888-438-2427 charter.com Lemonweir Valley Telecom 608-427-6515 lynxxnet.com Dean’s Satellite 608-372-2897 deansdish.com

Water and Sewer City of Tomah 608-374-7430 tomahonline.com


Utilities

Educating Yourself on Labor/Safety Issues The Wisconsin Department of Workforce Development is available to provide guidance to businesses in the state. They can help you walk through many of your employment and labor questions including labor standards, labor statistics, workforce management, training and many other topics.

Street Address 201 E. Washington Avenue, Madison WI 53703Mailing Address P.O. Box 7946, Madison, WI 53707-7946Phone (608) 266-3131Fax (608) 266-1784Web https://dwd.wisconsin.gov/dwd/default_business.htm

OSHAThe issuing and enforcing of occupational and safety health regulations is handled by the United States Department of Labor. The Occupational Safety and Health Administration (OSHA) is the federal agency which administers these policies. The requirements put forth by OSHA include posting notices to employees and maintaining accurate records of employee injuries. OSHA will provide you with the information on all requirements as well as related publications. OSHA policies and regulations must be posted in the workspace where all employees may see.

In addition of OSHA the U.S. government also supports the Employment Standards Administration, Mine Safety and Health Administration, Veterans Employment and Training Service, and the Pension and Welfare Benefits Administration. Each of these departments is designed to protect both the employer and employee. Similar to OSHA, each issues and enforces a unique set of requirements and regulations.

Application, Hiring, & Termination ProcessThere are basic ground rules to hiring and firing employees. These are legal requirements to acquiring or terminating employees. If handled incorrectly, personnel issues can result in legal problems. These legal problems can be large enough to shut your business down. It is important to make sure all your bases are covered. In addition to the do’s and don’ts listed below, contact the Wisconsin Department of Labor, the Wisconsin Human Resources Handbook (http://oser.state.wi.us/docview.asp?docid=4271) your local SHRM (Society for Human Resource Management) organization and/or an attorney for more on correct hiring and firing policies.

Application & Hiring

Don’t• Ask obvious questions: Do not ask questions regarding sex, age, race, etc. or anything related to these areas. These are sensitive areas and cannot be used as discriminating factors. Some applicants may believe that all gathered information is used. It is for this


RegulationsLabor & Safety Regulations

reason that you should not ask these questions. It is best to avoid these topics so as to eliminate all possibility of legal problems. • Write on the job application form: Any notes taken during interviews should be made on photocopies or other paper. This allows you to preserve the original application without marring it for your permanent records.

Do:• Limit your interview questions to job duties: There is no reason to ask questions that do not apply to the responsibilities of the position. You may ask an applicant if he/she has any barriers to completing the duties. Do not ask question like “Do you have children?” or “Are you married?” Small talk is acceptable if the interviewer is careful. Do not venture into conversations that might produce seemingly discriminatory information.• Make sure all company procedures follow employment statutes: Have your advisors or attorney review your system for application, hiring, and termination before you begin hiring and periodically thereafter.• Educate yourself: The best way to prevent problems is to be familiar with the law. When you are in doubt about issues concerning labor or safety, contact the Wisconsin Department of Labor at 608-245-5390.

Termination

Do:• Review company policies: If you have not yet developed company policies regarding application, hiring, and termination, call the Wisconsin Department of Labor. Make a checklist of your procedures. Make sure that you have followed the rules in the firing process. If you have not yet completed your checklist, YOU SHOULD NOT TERMINATE THE EMPLOYEE YET. Take care to finish all steps in the process to alleviate any questions and possible legal repercussions.• Have a stated code of expected employee behavior: Many employers face problems due to unclear expectations of conduct. It is easier to prove reasons for termination if such a code is in place. This documentation will be helpful if you are faced with paying restitution because it will show that you had a sufficient cause to terminate the employee.• Conduct an exit interview: This allows you to tie up any loose ends. Final paychecks can be issued, and company property (e.g. keys, paperwork, and files) can be returned. Ask the employee what he/she liked or disliked about your company. Ask for feedback on aspects of your company of which this person has knowledge. This person might be a bit more forthcoming with problems or constructive criticisms than someone who still works there.• Keep termination of an employee between you (management) and the employee: The fired employee will appreciate your discretion on this matter. Termination should not be discussed with other employees. Privacy can help you avoid harsh feelings and legal repercussions.• Have employees sign a release: If you are offering the fired employee severance pay or anything else of values, have him/her sign a release of liability to the company. This may protect you in case of legal action.


Regulations

When starting a business it is important to have a diverse base of information sources. One way to insure success is through education. The more you know about your field, the better off your business will be. The following is a list of potential resources for information.

Greater Tomah Area Chamber of Commerce608.372.2166 901 Kilbourn Ave, Tomah, WI 54660www.tomahwisconsin.com

Monroe County Economic Development Coordinator608.769.9910www.gomonroecountywi.com

7 Rivers Alliance608.787.8777www.7riversalliance.org

Local Financing: http://business.tomahwisconsin.com/list/search?q=bank

Small Business Administration: www.sba.gov/smallbusinessplanner/index.html

Office of Business Development: www.doa.wi.gov

Wisconsin Women’s Business Initiative Corporation: www.wwbic.com/

UW Extension Business and Entrepreneur: www.uwex.edu/about/business-entrepreneurship.html

Federal Tax Responsibilities: www.irs.gov/businesses

10 Steps to Starting a Business: www.business.gov/start/start-a-business.html

Clark Howard Course: http://myownbusiness.org/


ResourcesResource Directory

City of Tomah608.374.7420918 Superior Ave, Tomah, WI 54660www.tomahonline.com

Forward Wisconsin608.274.1576www.forwardwi.com

Other Resources

Being a member of the

Chamber of Commerce

opens doors!

For more info, contact 608.372.2166 or visit TomahWisconsin.com