Founded in 1854, the City of Galva is a small but storied municipal corporation that lies midway between Peoria and the Quad Cities. Like many small cities founded before the turn of the last century, Galva was established as a railroad town on what was originally the Military Tract line, later called the Chicago, Burlington & Quincy (C.B. & Q.).

The founders, William and James Wiley, were astute enough to recognize that locating along a major avenue of commerce was essential to the prosperity and ultimate survival of their new venture.

Today, the Wiley's business acumen is just as important to the continued existence of Galva as it was in the 1850s.

As the importance of the railroad faded with the appearance of interstate highways, and large airports contributed to the conurbation of America, Galva struggled to live up to its motto: "The City of Go."

Without the dedication of its proud and determined Scandinavian and European populace, Galva was destined to become another casualty of progress.

Fortunately, the City has weathered the economic storm long enough to see the re-emergence of the railroad as a preeminent mode of transportation (Bureau of Transportation Statistics) and wisely takes advantage of its position along the Burlington Northern Main Line, its position along US Route 34, its access to two major interstates and its proximation to two international airports.

 

Business Climate...

Election cycle after election cycle, the citizens of Galva continue to elect pro-business mayors and aldermen. As a result, the City has, over the past decade, welcomed within its corporate limits the branch office of a national wind energy corporation, a foundry, an assisted living center, an inland grain terminal (now the home of a 100 million gallon per year Ethanol plan), a new banking center, a hotel, a regional recycling operation, an additional clinic, a health care management facility, a large equipment repair facility, a powder coating operation and a new banking center to name a few.

Working with our regional partners and economic development associations, the City has facilitated the location of several wind farms in Henry County, thereby taking advantage, once again, of local assets (in this case a natural resource called wind) for an investment in the County of nearly $1 billion U.S.

The BNSF loads Ethanol at the Big River Resources facility in Galva, IL

 

Physical Climate...

The City of Galva boasts four distinct seasons. The summer months can produce highs in the upper 80's to lower 90's (on average), while the winter months can be quite cold (with lows in the teens and highs in the thirties).

Fall is particularly pleasant in Galva, with average temperatures in the low thirties on the bottom and in the mid-fifties on the top end.

Spring brings average temperatures in the mid fifties to low seventies.

Average Maximum Temperature: 59 degrees Fahrenheit

Average Minimum Temperature: 38 degrees Fahrenheit

Average Rainfall: 35 inches per year

Average Snowfall: 27 inches per year

 

Eagle Enterprises Recycling Center in Galva, IL

 

The City of Galva's COLI is less than both the average national and average Illinois indexes by approximately 19 and 18 points respectively.

Overall, Galva stands at less than 82, which compares favorably with the average Illinois index score of 99 and the national average of 100.

For more on cost of living and other demographic features, visit our demographics page.

Branchfield Casting's foundry building in Galva, IL

 

Distance to...

Major transportation routes...

US Route 34	0.0 Miles
BNSF Main Line	0.0 Miles
Interstate 74 (East to Peoria & Beyond)	23 Miles
Interstate 74 (West to Quad Cities)	16 Miles
Interstate 80 (East and West)	17 Miles

Major cities...

Peoria, IL	50 Miles
Quad Cities	48 Miles
Galesburg, IL	28 Miles
Chicago, IL	160 Miles
St. Louis, MO	221 Miles

Airports...

Peoria International	50 Miles
Quad City International	45 Miles
Chicago O'Hare	164 Miles
Chicago Midway	155 Miles
Kewanee Municipal	7 Miles

Colleges & Universities...

Black Hawk Community College, Galva	6 Miles
Carl Sandburg College, Galesburg	23 Miles
Knox College, Galesburg	23 Miles
Augustana College, Rock Island	35 Miles
Monmouth College	35 Miles
Black Hawk Community College, Moline	45 Miles
Bradley University, Peoria	50 Miles
Western Illinois University, Macomb	59 Miles
Eureka College, Eureka	66 Miles
Illinois Wesleyan University, Bloomington	72 Miles
Illinois State University, Normal	88 Miles
University of Illinois, Springfield	102 Miles
Northern Illinois University, DeKalb	116 Miles
University of Illinois, Urbana	120 Miles

 

 

all-feed processing and packaging facility in Galva

 

Labor force...

The City of Galva participates in the Quad City Region Labor shed study area.

A detailed analysis of the availability and characteristics of workers within our region is maintained and updated by Iowa Workforce Development and the Quad City Development Group (now called "Quad Cities First") with assistance from the Bi-State Regional Commission.

For purposes of the study, Galva falls within "Zone 3."

For the Executive Summary or the full analysis, click the appropriate link in the left sidebar.

Some highlights from the study follow in a Q & A format. Following the answer is the corresponding page number from the analysis.

 

What is Galva's estimated labor force?

1,767 (p. 5)

Of the total estimated labor force in Galva, how many are willing to change or accept employment?

72 (p. 5)

Of those employed in the analysis region, how many have some level of education beyond high school?

69.8% (p. 8,13-14)

What is the median wage in the analysis area?

$12.97 (p. 10,17-18)

What is the median salary?

$48,000.00 (p. 10,17-18)

How far are the employed willing to commute?

An average of 25 miles one way (p. 19-20)

What is the percentage of underemployed?

1.8% to 3.4% depending on whether the estimation is based on hours worked or mismatch of skills (p. 21-23)

What did the study find out about what it would take to get the unemployed to re-enter employment?

The three most important factors were wages, hours available and benefits. The estimated wage required was $10 to $11.50 per hour for the most qualified applicants. The lowest median wage the unemployed were willing to accept to re-enter was $9.00 per hour (p 26-27)

Does the analysis focus on any specific industries such as manufacturing or professional services?

Yes, specifics are provided for manufacturing, wholesale and retail trade, health care, education, professional services, and financial services (pp. 33-60)

 

taxation...

The City of Galva's current property tax rate is 2.7490 per $100.00 of equalized assessed value.

The City sales tax rate is equivalent to the state rate of 6.25%.

The City does not impose the following taxes:

• Non-home Rule Municipal Sales Tax (Additional Sales Tax)
• Simplified Municipal Telecommunications Tax (Telecom Tax)
• Utility Tax
• Business District Tax
• Additional Motor Fuel Tax
• Additional alcoholic beverage tax

property taxes...

The following table lists the taxing bodies, their current tax rate, and the percent of the tax each taxing body receives (e.g., the City of Galva currently receives 26.28% of a residents/businesses' tax bill).

Current Property Tax Breakout

Taxing Body	Current Rate	% Received
Henry County	0.9270	8.88%
Black Hawk College	0.5372	5.15%
Galva/Weller Multi ASR	0.0201	0.19%
Galva Road District	0.3308	3.17%
City of Galva	2.7291	26.15%
Galva Park District	0.4770	4.57%
Galva Library	05104	4.89%
Galva School Unit #224	4.7226	45.26%
Galva Township	0.1812	1.74%
Total	10.4354	100%

 

Estimating your tax bill...

Use the calculator below to estimate your property tax bill:

• Enter the total value of the property in the green box next to the label "Assessed Value"
• Hit the "Tab" key and your estimated total tax, barring any exemptions, will appear next to the label "Total Estimated Tax"
• If you are due any exemptions, enter the amount in the green box next to the label "Exemption" and the total estimated tax will be recalculated for you.
• You may hit the "reset" or "recalculate" buttons at any time

 

 

air transportation...

Kewanee Municipal Airport

3761 Midland Road

Kewanee, IL 61443

(309) 853 - 8671

airport / fbo information

 

Geneseo Airport

20028 E 1650th Street

Geneseo, IL 61254

(309) 944 - 8128

airport / fbo information

 

Peoria International Airport

6100 W. Everett McKinley Dirksen Parkway

Peoria, IL 61607

(309) 697 - 8272

airport / fbo information

 

Quad City International Airport

2200 69th Avenue

Moline, IL 61265

(309) 764 - 9621

airport / fbo information

 

rail transportation...

Amtrack

Loomis & North Tremont Streets

Kewanee, IL 61443

1 - 800 - 872 - 7245

Kewanee Station (KEE) Information

 

 

Galva's north treatment plant in winter conditions

 

utilities...

 

Water & Sewer Service

 

The City of Galva provides water and sewer service to residential and business customers.

Currently, the City of Galva has an excess capacity of 400,000 gallons per day (gpd)

Current excess capacity in our sewage treatment plants is as follows:

 

North Sewage Treatment Plant:

Excess flow capacity of 30,000 gallons per day (gpd)

Excess organic treatment capacity of 3,000 PE (population equivalency)

South Sewage Treatment Plant:

Excess flow capacity of 200,000 gallons per day (gpd)

Excess organic treatment capacity of 2,000 PE (population equivalency)

 

Telephone Service

 

Frontier

1-877-462-8188

or on the Web at:

http://www.frontier.com/

 

Internet Service

 

Frontier

1-877-462-8188

or on the Web at:

http://www.frontier.com/

 

Mediacom

1-800-379-7412

or on the Web at:

http://mediacomcable.com/Business/index.html

 

Gas & Electric Service

 

Ameren Illinois

1-800-755-5000

or on the Web at:

http://www.ameren.com/sites/aiu/MyBusiness/Pages/default.aspx

 

 

 

 

feasibility analysis and checklist...

 

A feasibility analysis is an important first step and should be completed before you invest too much time and effort into starting a business that you may find later had no chance of succeeding.

You will find a "Feasibility Checklist" in Appendix A of the handbook, or if you prefer, you can download just the checklist.

Answering the questions posed in the checklist will give you a better idea of whether or not your new or existing business opportunity is worth pursuing.

Additionally, certain question are designed to help you figure out if you truly have what it takes to become a business owner.

The Small Business Administration has an online assessment tool designed to "assist you in evaluating skills, characteristics and experience – as they relate to your preparedness for starting a business. " Submitting the answers will generate a list of proposed steps designed to improve your business start-up skills.

the business plan...

 

After you have completed a feasibility study and self-assessment, conventional wisdom suggests that the second step is a business plan.

For a different perspective, see Julian Lange's study of 117 new ventures to get Babson College's take on whether or not a business plan is absolutely necessary in the "real world" (hint: it is if you will be seeking startup capital from angels, venture capitalists and most banks).

A business plan outline can be found in Appendix B of the handbook, or if you prefer, you can download just the Outline.

You can find a lot of additional information on the World Wide Web about business plans; from how to write one to software products designed to assist you in the process (just type "business plan" in your search engine of choice). These products range from free to quite expensive.

The SBA offers a few free online courses that can assist you in starting and growing a business. One of the free courses they offer is entitled "How to Prepare a Business Plan."

Illinois Small Business Development Centers (ILSBDC) offer free, confidential counseling that includes business plan development.

There are five (5) SBDCs located within 75 miles of Galva. The two closet centers are located in Moline and Peoria:

If you would like to know which section of a business plan is hardest to complete, type "hardest section of a business plan" into your search engine of choice. The answer will be the marketing section (what the outline refers to as "market analysis" and "marketing strategy").

The bottom line: no matter how terrific your product or service, if you cannot sell it for a profit your business venture will not succeed.

business organization...

 

Chapter one of the Illinois Entrepreneurship Network's handbook for starting a business in Illinois does an outstanding job of concisely defining and comparing the several types of recognized business organizations in the Sate.

Page five (5) of the handbook allows you to compare business types in a chart format.

Keep in mind that information is subject to change, and that the handbook was last updated in 2008. An obvious change is the corporate income tax rate which can be found at the intersection of column seven (7) and row eight (8) of the chart.

Beginning 1 January, 2011, the corporate tax rate in Illinois increased from 4.8% to 7.00% and continues at that rate through 2014. From 2015 through 2024, the corporate rate increase falls to 5.25%, and beginning in 2025 forward the rate returns to 4.80% (pending any further legislative tinkering). The full text of the bill contains other provisions of interest, including a reversion of rates if certain spending caps are exceeded.

If you are unfamiliar with the seven types of organization, scroll through the panels below for a brief description followed by advantages (Pros) and disadvantages (Cons) or download the handbook.

 

 

 

registering a business...

 

Sole Proprietorships and General Partnerships:

The Illinois Assumed Name Act requires the registration of a sole proprietorship or general partnership with the county clerk's office when the name of the business differs from the owner(s) full legal name(s).

You must register your proprietorship or partnership with the Illinois Department of Revenue (ILDOR) by filing a REG-1. You can download a copy of form REG-1 from the ILDOR Website or you may register online at the Illinois Business Gateway.

In addition, the State will require a Schedule REG-1-L Illinois Business Site Location Information form be attached to your REG-1.

Other forms of organization:

The State of Illinois advises that competent counsel be sought before organizing as other than a sole proprietorship or general partnership (should you be unsure about the risks involved in either a sole proprietorship or general partnership, the wise course is also to seek counsel from a competent attorney and/or accountant).

The Illinois Secretary of State's Website maintains a business services section that contains, among other things, up-to-date information, requisite forms and relevant contact information for those wishing to organize as other than a sole proprietorship or general partnership.

In addition, the Illinois Business Gateway Website has up-to-date information on registration requirements, or you may contact one of the offices listed below:

For all forms of organization...

Keep in mind that most businesses are required to be registered with and/or licensed by the Department of Revenue. Use the link to the right (Licensure) for more information about licenses and permits or download the IEN handbook.

 

acquisitions...

 

A common way to start a business in Illinois is to acquire an existing business.

Be aware that the purchaser of the assets of a business is required to file a "Notice of Sale/Purchase of Business Assets" (form CBS-1), and obtain a Bulk Sales Release of Transferee Liability from the Illinois Department of Revenue.

franchise disclosure...

 

This aspect of business is regulated by the Franchise Disclosure Act which is administered by the Illinois Attorney General.

The Franchise Disclosure Act requires that the franchiser register with the Illinois Attorney General and provide the franchisee complete information regarding their franchisor-franchisee relationship, the details of the contract, the prior business experience of the franchiser and other information relevant to the franchise offered for sale.

A copy of the Act may be obtained from the office of the attorney general: (217) 782 - 4465

licenses, registration, permits and assistance...

 

Illinois Department of Revenue:

In Illinois, most businesses are required to be registered and/or licensed by the Department of Revenue.

The (REG-1) Illinois Business Registration, (IL-W-4) Withholding Allowance Certificate; (CBS-1) Notice of Sales or Purchase of Business Assets, are some of the forms that your business may be required to complete.

For more information on which form is applicable to your business, please contact the Illinois Department of Revenue at 1-800/732-8866, or by writing or visiting Revenue at:

 

The Department of Revenue also licenses and registers certain businesses upon which miscellaneous and excise taxes are levied. These include, but may not be limited to:

• Cigarette and Cigarette Use Tax (distributors);
• Coin-Operated Amusement Device Tax;
• Gas Revenue Tax;
• Hotel Operators' Occupation Tax;
• Liquor Tax;
• Motor Fuel Tax (distributors, suppliers, bulk users and blenders);
• Motor Fuel Use Tax;
• Public Utilities Tax (electric); and,
• Telecommunications Tax.

For more information call the Department of Revenue's Miscellaneous Taxes and Excise Tax Office at (217) 782 - 6045, or visit the ILDOR Tax Information page on the DOR Website.

 

The Department of Financial and Professional Regulation

The Department of Financial and Professional Regulation is the main licensing agency for the State of Illinois. IDFPR is comprised of three divisions that represent the agency's various functions and activities:

• The Division of Banking
• Division of Financial Institutions
• Division of Professional Regulation

For a complete listing of professions regulated and licensed by IDFPR start here.

To contact the Department by phone, mail, or in person:

If you download the IEN guide for starting a business in Illinois, you will notice page seven (7) of the guide includes a fourth division (the Division of Insurance); however, a search of the IDFPR site will leave you wanting for insurance licensing information (with the exception of title insurance).. Insurance matters in Illinois are regulated by the Illinois Department of Insurance (see below).

 

Illinois Department of Insurance

The Illinois Department of Insurance licenses and regulates all individuals who sell insurance in Illinois and determines their compliance with continuing education requirements.

Licenses are issued to producers, limited insurance representatives, public adjusters, premium finance companies, third party administrators and viatical settlement providers.

All producers and public adjusters must first pass a qualifying examination administered by an independent testing service.

All licensees are subject to investigations and examinations which may lead to regulatory action when violations are discovered.

For more information about licensing requirements, visit the department's Producer Information page, or write, call or visit one of their offices:

 

 

Securities Department

The Securities Department of the Secretary of State's Office licenses securities dealers, salespersons and investment advisors.

Information application packages may be obtained from:

And the list goes on...

In addition, many businesses are required to obtain permits or register with other state agencies. An example of this would be day-care services which are licensed by the Department of Children and Family Services. Trucking companies must register with the Illinois Commerce Commission. Those in the plumbing business register with the Department of Public Health. These are examples of other profession that are licensed by the state. To determine if your occupational activities are regulated, contact the IEN Business Information Center toll free at 800-252-2923 and a business specialist will assist you.

taxes...

Taxation for small businesses can be quite simple or very complex, depending on the size and type of operation. The following list outlines the major taxes with which a business must be concerned. Of course, the tax liability of each business will be different.

 

Income Tax

Every individual, corporation, trust and estate residing in Illinois or earning or receiving income in Illinois, must pay an income tax based on net income.

A replacement tax is also applied to the net income of partnerships, corporations and trusts.

S Corporations are subject only to replacement tax.

• Sole Proprietorship - A sole proprietorship must pay individual income taxes on earnings from the business
• Partnership and Limited Liability Companies - Each partner/owner must pay taxes on the distributive share of partnership/owner's income. In addition, Illinois has a replacement tax that applies to partnerships.
• Corporations - The corporate entity must pay a corporate income tax and replacement tax which is administered and collected by the Department of Revenue. In addition, corporations are assessed a franchise tax each year based on their paid-in capital and a Corporate Personal Property Tax Replacement Income Tax. Corporate and franchise taxes are administered and collected by the Secretary of State's Office.

Sales Taxes

Four categories of taxes comprise state and local sales taxes. These are:

• Retailer's Occupation Tax - a tax imposed directly on the gross receipts of a retail seller for the privilege of conducting business in Illinois. Retailers pay the Tax, and, by law, reimburse themselves for the tax by collecting Use Tax (see next) from customers, based on the selling price of the tangible personal property. The business can keep 1.75% of the taxes collected for acting as an agent for the Department of Revenue (so long as the tax is paid in a timely manner).
• Use Tax - a tax imposed directly on the purchaser for the privilege of using and consuming tangible personal property in Illinois that has been purchased anywhere.
• Service Occupation Tax - a tax imposed directly on the receipts from the selling price of any tangible personal property transferred as part of a sale of service, if the cost to the service person is 35% or more of the total charged.
• Service Use Tax - a tax imposed directly on the purchaser which is based on the selling price of the property transferred incident to a sale of service. The Service Use Tax is intended to reimburse the service person for his/her Service Occupation Tax liability.

Sales Tax Exemptions

Title 86 Part 140 Section 140.125 is a list of things exempt from sales tax. Alternately, or in addition to, Publication 104 explains common sales tax exemptions.

 

Property Taxes

All for-profit real estate owners are required to pay property taxes. The property tax rate is determined by local taxing jurisdictions and is paid to the township or county tax collector in the year following assessment (see "Taxes" under the Community Profile section of this page for information about local property taxes).

 

Withholding Taxes

Certain taxes must be withheld from employee wages and remitted to the government. These include state and federal income taxes and FICA (Social Security).

You may be required to register with both the federal government and the State of Illinois for tax withholding purposes.

To learn more about your federal requirements, contact the Internal Revenue Service at 1 - 800 - 829 - 3676 or visit their Small Business Products Online Ordering page to request any of the following materials:

• A Virtual Small Business Tax Workshop (Publication 1066C on CD-ROM) or view the workshop online
• Tax Calendar for Small Business and Self-Employed (Publication 1518) or view the calendar online
• Tax Information for Small Business and Self-Employed Taxpayers (Publication 4667)
• Recognizing Illegal Tax Avoidance Schemes (Publication 3995) or view the brochure online
• Small Business Tax Responsibilities (Publication 4591) or view the brochure online

You can find other pertinent publications such as the following in the "Publications Online" section of the IRS Website, or simply click the link of the title you are interested in below to view it online:

• Employers Tax Guide (Publication 15)
• Tax Guide for Small Business (Publication 334)
• Starting A Business and Keeping Records (Publication 583)

Federal Employer Identification Number (FEIN)

Every partnership, corporation and S Corporation must have a FEIN to use as its taxpayer identification number.

A sole proprietorship must have a FEIN if it:

1. Pays wages to one or more employees; or
2. Files any excise tax returns, including those for alcohol, tobacco or firearms

Otherwise, sole proprietors can use their social security number as their business taxpayer identification number.

To apply for a FEIN, use form SS_4, Application for Federal Employer Identification number, or call the IRS at 1 - 800 - 829 - 4933.

 

 

identification...

The Federal Immigration Reform and Control Act of 1986 requires every employer to keep on file a form for every employee certifying that employee's identity and work eligibility.

For further information, contact the Bureau of Citizenship and Immigration Services (formerly known as the U.S. Immigration and Naturalization Service (please note that the address listed in the handbook is incorrect):

 

wage withholding for child support...

Federal and state laws require judges in domestic relations cases to order employers to withhold a portion of an employee's income for payment of child support.

An Income Withholding Notice is prepared and served immediately upon the payor unless a written agreement by both parties to an alternative arrangement has been made.

If the payor becomes delinquent, the Income Withholding Notice will be issued.

The order is mandatory in cases involving Public Aid recipients.

 

When an Income Withholding Notice is served on the employer, the employer withholds the amount stated and sends the amount withheld to the State Disbursement Unit.

if the employer fails to withhold wages as specified in the Notice, the employer will be liable for the amount that should have been withheld, and may have to pay a fine.

 

An employer may not discharge, discipline, deny employment or otherwise penalize an employee because they are subject to an Income Withholding Notice. An employer who does so may be ordered to em ply, reinstate and/or pay restitution to the employee. A fine may be imposed by the Court on the employer.

 

The Illinois Department of Health care and Family Services (formerly the Illinois Department of Public Aid) is the child support enforcement agency for the State of Illinois.

 

For more specific information on provision of wage withholding for child support, contact the Illinois Department of Health care and Family Services at 1 - 800 - 447 - 4278 or visit their Child Support Services web page.

unemployment insurance...

You may be required to make unemployment insurance contributions to the Department of Employment Security.

Generally, you are liable for such contributions if you have:

1. Employed one or more workers in each of twenty weeks in a calendar year; or
2. Paid at least $1,500 in total wages during a calendar quarter

You also may be liable if you acquire all or part of a business already subject to the Unemployment Insurance Act.

To determine liability, complete and submit a "Report to Determine Liability" form (UI-1).

For additional information, read the Department's guide: "Fast Facts for Employers."

 

You can download the Department's "New Employer Packet" or request one in writing or by phone:

 

worker's compensation...

By law, an employer is required to provide insurance for employee's accidental deaths, injuries, and occupational diseases arising out of and in the course of employment.

The insurance requirement is applicable to almost all businesses and must include provisions for all medical expenses, rehabilitation and retraining, temporary and total disability, permanent disability and death benefits.

Insurance is generally purchased through private firms or agents, although business can apply to the Commission for permission to self-insure.

Annual premiums are based on total company payroll, loss experience and type of business.

Employers must post a notice in the workplace listing the insurance carrier and explaining worker's rights under the law.

Temporary workers who otherwise do not receive any company benefits are still provided worker's compensation.

For further information on worker's compensation, contact:

 

 

If you are refused coverage by two or more companies, you can obtain insurance from the Assigned Risk Pool. Rates will generally be approximately 20% higher than on the open market. To receive information on Assigned Risk coverage, call the National Council on Compensation Insurance at 1-800-622-4123 or view their options for submitting applications online.

posters that must be displayed...

Federal and state laws require that certain posters be displayed on business premises to inform employees of their rights and benefits.

These posters may be obtained at no cost from the applicable agencies listed:

 

1. Equal Employment Opportunity Commission - businesses with 15 or more employees must display the poster from the EEOC entitled "Equal Employment Opportunity is THE LAW"
2. Illinois Department of Employment Security - the IDES poster is included in the Employer Startup Kit (scroll down to the Employer's Section to the Kit link) or from the Fast Facts for Employers page of their website.
3. Illinois Worker's Compensation Commission - employers must display a workplace notice listing the insurance carrier and explaining worker's rights under the Worker's Compensation Act.
4. Illinois Department of Labor - the Illinois Department of Labor requires employers to display the poster entitled "Your Rights Under Illinois Employment Laws." IDOL is responsible for enforcement of laws which protect Illinois workers. These laws provide a workplace in which employer and employee are each bound by the same impartial laws and standards.
5. US Department of Labor - businesses with one or more employees must display these posters to inform employees of their rights:

• Occupational Safety and Health Administration's Safety Poster
• Family Medical Leave Act
• Fair Labor Standards Act
• Employee Polygraph Protection Act
• Uniform Services Employment and Reemployment Rights Act (USERRA)

Occupational Safety and Health Administration (OSHA)...

The Illinois On site Safety and Health Consultation program administered by the Department of Commerce and Economic Opportunity helps small businesses meet federal health and safety regulations.

The goal of the program is to assist small businesses to identify and correct occupational health and safety hazards at their facilities. Services are confidential (findings are not reported to OSHA) and are provided at no cost.

• Program staff consists of trained professional who identify potential hazards in the business sites and provide recommendation to reduce or eliminate them
• Site consultations help businesses meet current OSHA regulations and develop an effective ongoing safety program
• Confidential, comprehensive reports containing findings and recommendations are provided
• The program helps employers comply with OSHA regulations, and thereby avoid costly fines, reduce workman’s compensation claims and insurance premiums

business services...

 

Obtaining Legal Counsel

Many business owners consider legal services only when their firms are in trouble. However, costly and time-consuming legal problems can be averted by retaining a competent attorney who can advise on such business areas as:

• choosing the type of business organization that best suits your needs and objectives
• protecting your family's financial security from business risks
• advising you as to local, state and federal regulations which affect your business
• obtaining licenses and permits
• preparing or inspecting contracts
• resolving tax questions
• assisting in obtaining financing and,
• giving practical advice on many business problems

Attorneys also can provide professional help when dealing with other parties such as:

• financial institutions
• owners of possible store or plant locations
• union officials
• governmental bodies
• franchising companies
• contracts with suppliers and customers, and
• insurance coverage negotiation with employees

In addition, other problems may arise requiring the services of an attorney. For instance, the employer may be served with wage deduction orders against employees which, if not handled properly, can result in personal liability on the part of the employer. Other examples:

• The business may face collection problems with its customers
• The business may become involved in disputes with its trade creditors
• The business may have disputes with both present and former employees
• The business may have expansion opportunities or restructuring may have to be considered

When seeking an attorney's counsel or assistance, be as prepared as possible. Collect pertinent data, do necessary research and have as much information as possible about your business. This will save your attorney time and you money.

When considering an attorney, use discretion. Remember, an attorney will provide services fundamental to the success of your business.

There are several methods for selecting an attorney. It may be prudent to seek recommendations from other business owners. The Martindale-Hubbel Law Directory contains a listing and rating of attorneys in your city; a copy may be found at the local library. The public library is also a place to obtain reference books on legal topics. Included in this group is the Small Business Legal Advisor by William A. Hancock, published by McGraw-Hill.

Another method of finding an attorney is Illinois Lawyer Finders or call (217) 525 - 5297.

 

Insurance Coverage

Many people starting a small business fail to consider their insurance needs. A well planned insurance program is essential for protecting a business from unforeseen losses and significant financial burdens.

Four types of insurance coverage are essential:

• fire
• liability
• vehicle
• workers' compensation

In addition, there are several desirable types of insurance coverage:

• business interruption
• crime
• key employee

In organizing an insurance program, there are four basic considerations:

1. Recognize your risks - recognize the perils facing the business and the potential loss from each
2. Study insurance costs- before purchasing insurance, investigate the methods by which you can reduce the cost of coverage. This includes "shopping" for the appropriate insurance plans.
3. Have a plan - prepare an insurance plan that is compatible with the operation and goals of the business
4. Get professional advice - a qualified insurance agency, producer, broker or consultant can explain options, recommend the best coverage and help save money

Bookkeeping

Access to proper information is provided by a sound bookkeeping system.

Functions of a good system include:

• Starting and keeping an accounting system for the accurate and timely recording of the company's cash receipts, disbursements, sales and operating expenses
• Preparing periodic statements. This includes statement of assets and liabilities as of a given date (balance sheet), statement of results of operations for a given period of time (income statement), statement of changes in financial position, and establishment of systems that track accounts receivable and payments due
• Preparing state and federal income tax returns
• Preparing social security, withholding, property and other tax returns

These responsibilities may be undertaken from within or outside of the business. This will depend on the size and nature of the business and your own experience and available time. Your accountant, attorney or banker can help decide your needs for a bookkeeper or bookkeeping service.

 

Accounting

In addition to bookkeeping requirements, you may need the services of a certified public accountant (CPA), an accountant who has passed a written examination prepared by the American Institute of Certified Public Accountants and who has received a state license for their public practice of accountancy. CPAs provide the following services:

• Auditing - Although you may have hired a bookkeeper to maintain accounting records and prepare financial statements, there are many reasons why you may need financial statements certified by a CPA. For example, banks and other lenders frequently require an audit before a loan is granted and during the period that the loan is outstanding.
• Taxes - Most businesses do not have employees who are experts in tax matters and, therefore, must rely on professional assistance. This is particularly true today when the tax laws are complex and continually changing. The tax services provided by CPAs include planning transactions for the lowest present and future tax liabilities, preparation of tax returns, conferences with taxing authorities who are examining prior years' tax returns and estate planning.
• Consulting - Because of their experience with many companies in many industries, CPAs may be able to assist you in cost reduction, improvement of reports, installing or upgrading accounting systems, budgeting and forecasts, financial analyses, production control, quality control, compensation of personnel and records management.

The Independent Accountants Association of Illinois (IAAI), established in 1949, also can refer a competent accountant to the potential Illinois small businessperson. IAAI's membership is composed of both CPAs and non-CPA accountants. Many of the IAAI accountants are licensed to represent a client before the IRS. Non-CPA accountants can assist with accounting, sales and payroll tax preparation and other business consulting needs.

For more information, contact:

 

The Illinois CPA Society is the state professional association representing more than 25,000 certified public accountants. The Illinois CPA Society is one of the largest state CPA Societies with members in education, government, industry and public accounting.

Members of the Illinois CPA Society are bound by professional ethical standards.

The Illinois CPA Society sponsors several public service programs. Some of these include: Disaster Relief Assistance for those in need of tax assistance after a natural disaster (floods, tornadoes, etc.), teaching educational courses for small business owners, and speaking engagements throughout the state. For more information, contact The Illinois CPA Society.

 

Professional Associations

There are associations to represent every business/trade/professional imaginable.

Associations are engaged in promoting the business interests of their members and often:

• conduct research
• provide educational services
• develop statistics
• sponsor quality education and certification standards
• lobby public officials
• publish newsletters, books and periodicals

Benefits may include:

• certification
• free attendance at trade shows and conventions
• workshops and seminars
• dollar-saving bankcards
• promote public awareness of and the value of your trade
• and, in some instances, provide insurance

The smaller business owner has little time to lobby government officials on issues of interest, which makes a membership in an association a valuable aspect of operating a business, especially if your profession/trade is heavily regulated.

Additional benefits include networking with people in your field of interest and keeping up with industry trends and developments.

 

Chambers of Commerce

The Illinois Chamber and local chambers of commerce act in much the same way as associations and offer many of the same programs. Chambers, however, support the entire concept of a community and market the area as a whole, which includes its businesses, churches, schools, parks & recreation, special events, historical significance, natural environment and other civic amenities. Benefits of membership in a chamber include opportunities to network and create an awareness of business name, product or service.

By getting involved in chamber activities, members have the opportunity to meet and work with area business leaders on issues impacting not only business, but also the area. Chambers work to improve the economic climate, business environment and community's image as a whole.

 

obtaining financing...

Financial resources available to small businesses can vary depending on whether you are starting a new business or purchasing an existing business.

The most common source of financing for a small business is personal resources. Many businesses begin on a "shoestring" or household budget until their financial situation and cash flow are stable. Friends, relatives and financial institutions also are potential sources of financing.

Business loans for startup enterprises are not easily obtained, but fortunately there are various alternatives to consider. US Small Business Administration (SBA) has an excellent pamphlet entitled "The ABC's of Borrowing" which explains the process of borrowing money from banks or other lending institutions.

 

How To Apply For A Loan

The following guidelines should be used for the current or prospective business owner when preparing to request financial assistance. Those wanting to start a business should:

• Describe the type of business you plan to establish
• Submit information on the products or services the business plans to offer and identify existing and potential customers and competitors
• Describe your experience and management capabilities
• Prepare an estimate of how much you or others have to invest in the business and how much you will need to borrow
• Prepare a current financial statement (balance sheet) listing all personal assets and all liabilities
• Prepare a detailed projection of earnings for the first three years the business will operate
• List collateral to be offered as security for the loan, indicating your estimate of the present market value of each item
• State the amount of the loan and exact purpose(s) for which it can be used

Those already in business should:

• Submit a brief history of the business and its employment growth
• Submit information on your company's products or services and identify existing and potential major customers and competitors
• Prepare a current financial statement (balance sheet) listing all assets and liabilities of the business
• Have an earnings (profit and loss) statement for the last two years and for the current period to the date of the balance sheet
• Prepare a current personal financial statement of the owner, each partner or each stockholder owning 20 percent or more of the corporate stock in the business
• List collateral to be offered as security for the loan, with an estimate of the present market value of each item
• State the amount of the loan requested and exact purposes for which it can be used

Along with the preceding information, a business plan should be submitted to the lender outlining the basic structure and direction of the business. A business plan outline is located in Appendix B of the Starting A Business In Illinois handbook or you can download just the outline.

 

Overview Of Federal And State Financial Assistance Programs

There are a number of financial assistance programs available to the business community here in Illinois, including aid from federal sources:

• US Small Business Administration (SBA) - The SBA has a number of programs and services available. They include training and educational programs, advisory services, publications, financial programs and contract assistance. The agency also offers specialized programs for women business owners, minorities, veterans, international trade and rural development. Local SBA resources are available through the SBA-Direct program.
• State of Illinois - The Department of Commerce and Economic Opportunity (DCEO) is Illinois' lead economic development agency, with a wide range of programs and services.

 

banking services...

Businesses have special financial needs and the types of commercial accounts available are as varied as those for individuals. Work with your local banker to discuss the following banking services:

• Commercial Checking Accounts - Checking account services are available for every size of business, with custom check design and a variety of check formats that provide audit controls for the account. Service charges may be calculated on the number of checks written and the number of checks deposited, plus a monthly maintenance fee. In most cases, an account receives a monthly earning credit based on an average of previous weeks' Treasury Bill rates which is applied against the service charges calculated for the account.
• Commercial Deposit Services - Commercial Bulk Deposits allow the business to process bulk change, pick up currency or drop off large deposits. Also, with the advent of 24-hour automatic teller facilities, businesses as well as individuals have greater access to certain banking services. Federal Tax Depository Services also are available to help prevent a penalty for late payment of taxes. The date the bank accepts the deposit establishes the date of payment.
• Commercial Savings/Investment Services - Business Savings Programs allow a business to deposit up to a certain amount in a savings account that earns interest on a percentage per year, compounded continuously for an effective yield. Short-term investments also are available using Certificates of Deposit and Repurchase Agreements.
• Loan Services - In some instances, the bank can provide assistance in obtaining and financing loans. The following are some possible areas of assistance:

• Working capital loans provide short-term access to interim operating funds.
• A revolving line of credit is a pre-established borrowing limit that can help meet monthly expenses.
• Inventory financing or a seasonal line of credit can help see the business through cyclical, capital-intensive periods which are common to agriculture and certain types of wholesale and retail operations.
• A letter of credit from a bank can improve purchasing power in business transactions outside the local area.
• Accounts receivable financing allows borrowing against business already on the books.
• Equipment financing and leasing arrangements can help to properly equip the business or expand it when it is ready to grow. - Capital loans provide venture capital to help start or invest in a commercial enterprise.
• Real estate mortgages are available to help acquire property and real estate management services can help manage the property.
• Credit investigations can help protect the business owner when dealing with unfamiliar sources.

• Other Services - The nature of banking is such that it lends itself readily to other services. Following are some of the other services offered by banks:

• Business advice - It frequently is said that the banker should be a business guide and friend to his clients. Bank officers develop a broad understanding of the operations of their clients' businesses. Some banks employ engineering and management experts who are made available to their clients for suggestions and guidance. It is very important to find a banker who is interested in you and your company.
• Credit advice - Every sizable bank has a credit department that handles problems that arise daily. A bank with a good credit department frequently can be helpful to the business owner.
• Agent services - Although it may act as an agent in many important and complex ways, the use of a bank as an agent for collection and disbursement services of various kinds can be of invaluable assistance to smaller businesses.
• Trust services - Most banks have trust departments that, among other things, handle financial affairs for people who want them to manage or hold investments, and to collect income and pay it out as agreed. Also, many times a bank is named as executor in a will to take charge when an individual dies.
• Safe deposit boxes - Many banks provide safe deposit box services. The service is a simple one and is frequently used for the safekeeping of various business records.

• Investing Profits - Because it can be difficult to anticipate volume and a general unwillingness exists to take a market risk, many businesses prefer to leave profits in an interest-earning commercial checking (NOW) account. NOW accounts are available only to sole proprietorships and partnerships unless a corporation is not-for-profit. However, several other avenues might be explored:

• High grade commercial paper
• Municipal bonds
• Treasury bills or tax anticipation notes
• Certificates of deposit

Check with the bank's investment advisor or a stock broker for the best plan for your business.

uniform commercial code...

Chapter 810, Illinois Compiled Statutes, Act 5, Article 9, Part 1, contains the provisions of the Uniform Commercial Code - Secured Transactions.

If you borrow money using certain items of commercial property as collateral, the lender has the right to file a lien on that property with the Secretary of State's Office, Uniform Commercial Code Division. This guarantees the lender first rights to the property if you default on loan payments or file for bankruptcy.

securities regulation...

Many financing plans for small businesses involve, at least in part, the issuance of securities.

Some of the most common forms of securities utilized by small businesses are:

• common or preferred stock
• limited partnership interests
• debt with an option to convert into stock
• warrants to purchase stock

Debt financing obtained from parties other than commercial lenders also may involve a security.

Securities must be registered with the Secretary of State's Office, Securities Department, before being offered or sold in Illinois, unless the securities are exempt from the registration requirements.

Persons selling the securities also may have to be licensed by the Securities Department.

If the business is seeking securities financing in any other state, it probably will also have to comply with federal and the other states' securities registration requirements.

Consult an attorney about whether your financing plan involves securities and the applicable registration requirements and exemptions.

business operations...

 

Determining Business Location

The location of the business often is determined by the type of business. Many sole proprietor operations are run in the home. Indeed, some occupations make that desirable and you are entitled to certain tax deductions which can be determined by discussing your business situation with an attorney or accountant.

Check local ordinances regarding owning and operating a business from your home.

The Galva Zoning Ordinance defines a home occupation thusly:

A gainful occupation or profession customarily carried on by an occupant of a dwelling unit as a use which is clearly incidental to the use of the dwelling unit for residential purposes. The "home occupation" shall be carried on wholly within the principal building or within a building accessory thereto, and only by members of the family occupying the premises and one person outside the family. No article shall be sold or offered for sale on the premises except such as is produced by the occupation on the premises. There shall be no exterior display; no exterior storage of material, no other exterior indication of the "home occupation" or variation from the residential character of the principal building, and no offensive odors, noise, vibration, smoke, dust, heat, or glare shall be produced. Offices, clinics, doctor's offices,hospitals, barber shops, tea rooms, restaurants, beauty parlors, dress shops, millinery shops, tourist homes, animal hospitals, and kennels, among others, shall not be deemed to be "home occupations."

Opening An Office

If the decision is made to have an office outside the home, a reputable real estate agent specializing in leasing or selling commercial space can help determine a quality location. Take as much time and care in choosing a business site as in choosing a home. The average employee spends 25 percent of his/her time at work and the environment should be as conducive to business as possible. In addition, a local office furniture and supply store can give valuable help in getting the office set up. It can assist with everything from color schemes to company logo design. Shared office space is another alternative whereby space is rented on a yearly, monthly or even hourly basis. Conference rooms, steno service and mailing address use are but a few options.

 

Temporary/Emergency Personnel

If your business has additional employees, chances are someone will be ill or unexpectedly absent for personal reasons. If this absence will create major inefficiencies, consider contacting a local employment agency.

Temporary services can supply clerical personnel and, in some instances, workers for light industrial positions. A temporary replacement can usually be on the job within a few hours. The company will charge an hourly rate based on job description. If dissatisfied with the help provided, there generally is no charge. Check the yellow pages of the local telephone directory for Temporary Employment Agencies.

If known in advance that an employee will be out of the office (vacation, for example), contact your local college or university and ask for their placement offices. Students often stop by to check bulletin boards for local job offerings.

There will be instances, of course, when the business must go on without replacement help. If it is obvious that the business is understaffed, explain the situation to the customers and request their patience. The majority will be quite understanding.

 

Credit Card Service

In this age of plastic, most businesses accept major credit cards as payment for services or product.

A local bank can make your business accessible to the Visa, MasterCharge, American Express and other credit card systems.

When contacting a bank which handles those accounts, you will be asked to provide commercial and financial statements, and the bank will do an analysis of the business' solvency. If unable to estimate the business' income, a personal credit check will be conducted to ascertain dependability.

Upon approval, the bank will establish a commercial account for the business into which you deposit the credit card "bank" copies. The bank receives statements from the credit card company and remits payment from your account.

Each bank imposes a processing cost on the business account depending upon average sales and volume. This can be anywhere from two to twelve percent -- usually the former.

The bank and the credit card company can either rent or sell one or more credit card machines. At some point the business may want to consider more sophisticated equipment which automatically determines the validity of a credit card. After signing an agreement with the bank, the business will receive monthly statements of account balance.

 

Check Cashing Protection

A business can enhance its profits by welcoming a potential customer's check, but along with a check cashing policy comes the built-in risk of receiving a bad check. No business is immune. There are several ways, however, to be as protected as possible when providing this service.

It is sound policy to have the check writer include their phone, driver's license and social security numbers on the check. The check should have the person's name and address pre-printed. In case of problems, the writer can be reached.

In order to verify if a check is good at point of purchase, several companies provide a tracking system and can tell a subscribing member (generally via an 800 number) whether or not to accept a check. For a one-time enrollment fee, a sales representative will explain the service and provide training for employees on how to use the system. Thereafter, a monthly fee entitles you to check verification and guaranteed payment if the service indicates a check is good that subsequently is not.

There also are check cashing protection systems that will guarantee, up to a certain limit, all bad checks you receive. Acting as a type of insurance agency, the systems charge a monthly rate based on the average volume of checks you receive, and provide personalized service. When you receive an "insufficient" or "non-sufficient funds" (ISF/NSF) check returned by a bank, you have several recourses:

• Wait a reasonable amount of time and redeposit the check
• Contact the individual who wrote the check requesting that they make the check good
• Post a notice alerting employees not to accept checks from the individual until the outstanding check is made good
• If satisfaction has not been received within a reasonable amount of time, send a written demand to the person's last known address by certified letter, return receipt requested.

By law, the individual who fails to pay the amount of the written check within 30 days is liable for triple the amount owed, plus attorney's fees and court costs for recovery. In no case is that amount less than $100 or more than $500 plus fees and costs.

In order to bring a civil suit in small claims or other appropriate court, you will need a copy of the letter, certified mail receipt, a copy of the check (front and back), and a letter from the bank indicating that the check is no good.

Another course of action would be to contact the local State's Attorney's Office. The State's Attorney's Office may contact the maker of the check by letter to finally resolve any questions of inadvertence or may initiate prosecution immediately. Upon initial contact with the State's Attorney's Office, you will be asked to complete an incident report to aid in prosecution of the case.

Remember that most people do not set out to defraud or pass bogus checks, but there are enough who do, so remain alert.

The local police department may be a source of assistance if forgery is suspected.

 

Public Relations

Public relations can be simply defined as "doing good things and then making an effort to alert people that you've done them." In a practical sense, it means getting the word of the positive, newsworthy things that happen in or at your place of business to the media so they, in turn, will tell the story to their audiences -- your potential customers. When this happens successfully, the end result is publicity.

Good publicity is any news that is of potential interest to the people in the community. People make news. Employee promotions and awards make news. Events make news -- business opening, special promotions, anniversary celebrations, participation in or sponsorship of a community activity. Innovations are news -- a new product, a new service.

The more consumers read, see and hear about a business' positive accomplishments, achievements and activities, the greater the awareness will be of you and your business in the local community, resulting in a better image.

Awareness and a good image are what can set a business apart from competitors.

 

 

patents, trademarks and copyrights...

In some instances, "protection" may be sought for a product, service, new invention or printed material. Following is a brief discussion of the three primary kinds of intellectual property protection, each of which serves different purposes.

 

Patents

A patent is a grant of a property right by the United States Government to the inventor (or his/her heirs or assigns). The grant is made through the United States Patent and Trademark Office.

There are three types of patents:

• Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter, or any new and useful improvement thereof. Utility patents are granted for a term which begins with the date of the grant and usually ends 20 years from the date it was first applied for subject to the payment of appropriate maintenance fees.
• Design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture. Design patents last 14 years from the date the patent was granted. No maintenance fees are required for design patents; and
• Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant. Plant patents are granted for a term which begins with the date of the grant and usually ends 20 years from the date it was first applied fort

Each patent application is a unique document that is prepared individually by the inventor, with or without the help of a patent attorney. The first step in developing an application is a search to be sure the invention is indeed new, unique, non-obvious and, for utility patents useful. When the document is prepared is filed with and examined by the United States Patent and Trademark Office. All fees may be revised annual, taking effect October 1, the beginning of the federal government's fiscal year.

General information concerning patents is available on the Web at the United States Patent and Trademark Office website.

The State of Illinois has a designated Patent and Trademark Depository Library which is housed in the Chicago Public Library.

 

Federal Trademarks

Use the trademarks section of the United States Patent and Trademark website to research trademark information.

 

State Trademarks

The mark must be in use in Illinois before it may be registered and examples of this use must be submitted with the application for registration.

For research and/or trademark/service mark registration with the State of Illinois, start with the Secretary of States Trademark/Service Mark web page.

 

Copyrights

Copyright protects the author, generally allowing the "author" to control the copying of his work. Additional information, forms and electronic filing of copyrights can be done through the Library of Congress web page.