Starting a new business in Downtown Wytheville

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1 Starting a new business in Downtown Wytheville Downtown Wytheville, Inc. welcomes you to Historic Downtown Wytheville. It is our mission to build and maintain a healthy, vibrant downtown. Make sure to connect with us via Facebook, Twitter, and . Opening a business can be overwhelming. There are many things you ll need to know along the way and these tips are meant to make the process a little easier. First, you need a business plan. A conceptual, brief plan summarizing your business is very useful when meeting with property owners and financial institutions. Examples of topics in a business plan: A mission/vision statement Marketing strategies Development plans Explanation of your legal structure Financial projections Analysis of the competition Operation and management plans Insurance Coverage Choose your location and establish a budget. Now that you ve prepared a business plan you have a better idea of what you can afford to spend each month. Consider onetime expenses such as permits, possible construction or renovations as well as ongoing expenses such as rent, utilities, taxes and insurance, maintenance, and parking. Step One: Do your research on available downtown properties and determine the price per square foot. Commercial spaces in the downtown area are for sale or lease by various property owners. You may wish to secure the services of a commercial real estate broker who can show you suitable properties and be involved in the negotiation process. Todd Wolford, the executive director of Downtown Wytheville, Inc., is a great place to start to research available retail spaces. Step Two: Once you find a location that meets your needs, make sure you fully understand all of your obligations under the lease. It is advisable to have an attorney review the lease before you sign. Interior renovations will likely be needed prior to opening a new business. These renovations will in most cases be necessary to meet town zoning or building code requirements. One key question is whether you or the landlord will bear the financial responsibility for renovations.

2 If your space requires framing, electrical work, plumbing, mechanical, or modification to your sprinkler or fire alarm system, yes, you will need building permits. All work must be performed by licensed contractors. Before making a final decision on the location, members from the Design Committee and the town s building Inspector will be happy to meet with you on site to talk about your project needs. These are the people who will also inspect the work. Change of Use: In some instances your plans will constitute a change of use for the property. Examples of the use classifications in the State of Virginia Building Code include Mercantile, Business, and Assembly. The Building Code requires improvements when a change of use occurs from one building code classification to another. For example, if the space was previously used as retail store, (Mercantile), and you are proposing a restaurant, (Assembly), a change of use is required because these two uses are regulated by different building code use classifications. However, there are many uses that fall within the same Building Code classification. The town s building inspector can help you determine classification of the use as soon as you solidify your plans and choose a tentative location. Substantial Changes to the Space: The other way that improvements to the space may be require a permit is if you plan to make substantial changes to the space. The level of changes proposed may trigger required improvements even if the use classification is not changing. Town of Wytheville, Now that you re opening a business you need a sign to help people find you. There are some requirements in terms of the number of signs allowed, size, type, and location. Wall signs and hanging signs are the most common signs allowed for a downtown business. The Town of Wytheville does require you to obtain a sign permit for any signs you wish to install. Downtown Wytheville, Inc. s, Design Committee will be the first resource to getting your sign permit. Call or visit for a copy of the policy.

3 You must comply with loading zone requirements in the public right of way. You must comply with the Sign Ordinance and must not post signs on public property or the right of way. You must not deposit trash or garbage on public streets or alleys. You must remove snow and ice from public sidewalks fronting your property. You should be aware of restrictions on excavations of public sidewalks, streets, alleys, etc. You must comply with the requirements for motor vehicles exceeding 22 feet in length parked on the public right of way. You must not deposit rainwater from your building roof onto the public sidewalk. You must have permission to construct a cellar door opening onto a public sidewalk. You must place barricades or other warning devices around authorized obstructions or excavations that you create on public streets, sidewalks, alleys, etc. The Town of Wytheville requires a business license. The license is based on the gross receipts of your business. You must file an application and pay the license tax by March 1 of each year. A new business must obtain a license prior to the date it begins operation. License processing generally takes approximately 3 to 5 business days. The license tax imposed on a person engaged in retail sales is seventeen cents (17 ) per one hundred dollars of gross receipts, but not less than thirty dollars ($30). Prepared Food and Beverage Tax Incentives are offered! Every restaurant, caterer, convenience store, grocery delicatessen, etc., engaged in the business of selling prepared food in the Town of Wytheville must register with the Department of Financial Services, collect the tax, and file the appropriate returns on a monthly basis. The tax rate is 7% of the total cost of the prepared food. This is often referred to as the Meals Tax. Transient Occupancy Tax - Every hotel, motel, tourist home, or other lodging place that, for compensation, furnishes lodging to any person on a transient basis, (30 consecutive days or less), must collect the appropriate transient tax. Registration with the Town of Wytheville required and returns must be filed on a monthly basis. The tax rate is 7% of the hotel bill. Virginia State Taxes Retail Sales Tax This sales tax is imposed on the gross receipts from retail sales of tangible personal property. The seller collects the tax from the customer. The tax rate is 5.3% (4.3% state and 1% local). You must register with

4 the Department of Taxation to obtain a Certificate of Registration and file reports and the tax monthly or quarterly, depending upon the volume of business. Virginia Department of Taxation, Richmond, VA Virginia Unemployment Taxes Virginia, in addition to the federal government, levies a tax on employees wages. The tax is paid by the employer into a state fund from which unemployment benefits are paid. Virginia Employment Commission, Roanoke, VA Workers Compensation Any employers who has three or more regular employees is required to furnish workers compensation insurance coverage at no cost to the employees. The insurance may be purchased through a private insurance company or the employer can apply to be self-insured to: Virginia Workers Compensation Commission, Richmond, VA Federal Taxes Employee Income Taxes Employers are required to withhold Social Security, (FICA), taxes and income tax from the wages of employees. The taxes should be filed quarterly on Federal Form #941 and deposited in any authorized bank with coupon #8109, (or electronically filed). Federal Unemployment Taxes This federal tax, known as FUTA, is assessed on the employer only. An annual tax return, Form #940, must be filed by Jan. 31. Quarterly deposits can be made to any authorized bank using coupon #8109, (or electronically deposited). Internal Revenue Service, Roanoke VA (Assistance) (Tax Forms)

5 The Joint Industrial Development Authority has Revolving Loans available. 1. Entrepreneur Microloans: Up to $5,000 for up to 18 months at below prevailing prime interest rate 2. The 5 & 10 Loan Program: Offers loans up to $50,000 for five or ten years. 3. Special Project Loans: Available for larger projects on a merit-based application process. To qualify, a business must be located in the JIDA target area and provide a business plan with income projections and comprehensive financial information. JIDA of Wythe County, 190 South First Street, Wytheville, Virginia (phone), (fax), office@wytheida.org - Parking- Be a friend to your neighbor and to your customers by saving parking spots on Main Street for paying customers. There are municipal lots on Monroe Street and Spring Street that offer free parking for you and your employees. Remember: Every spot available for customers is money in your business! - Work with your downtown neighbors- Downtown businesses benefit from working together versus competing. Taking advantage of the walkability and density downtown, business owners can help the downtown to be active by knowing the other businesses in downtown and encouraging customers to visit other places. - Get on the Downtown Wytheville list- Downtown Wytheville Inc. is actively working with business owners through special events, co-advertising, market data, etc. Being on the list will help to keep you informed of many things about Downtown and also allow you to give feedback to our organization on how to better help your business. Contact Todd: exedir@downtownwytheville.org - Hours of Operation- What is best for your business? Downtown encourages you to think about Wytheville s half a million travelers every year. Most of their travel plans bring them to our town Thursday-Saturday and they are looking for things to do! Consider staying open late, especially on tourist days. - Get Involved- The best way to know what is happening Downtown is to be involved. Downtown Wytheville, Inc. is a volunteer organization that needs you! Visit our website to see how you can help. - Negative Signs- Downtown has a very unique feel to visitors. Make sure your business is welcoming and friendly. One easy way to offend customers is by having unprofessional and negative signs displayed. Some examples are: No Public Restrooms, No Soliciting, etc. NOTE: Information contained herein is not intended to be all-inclusive of every requirement for establishing a business. Competent legal counsel is recommended and may be required to ensure that all licenses, taxes, and other requirements for establishing and conducting business are met. Downtown Wytheville, Inc. assumes no liability for omissions or errors in the plans of any person resulting from use of this general guide to locating a business in Downtown Wytheville.