Frequently Asked Questions

View our Frequently Asked Questions to get answers to common business questions. If your question is not listed on our Frequently Asked Questions page, please contact us at any time.

General Questions

The Small Business Development Center (SBDC) is a nationally supported program that provides consulting, training, and business resources to small business owners and aspiring entrepreneurs. SBDCs are partially funded by the U.S. Small Business Administration (SBA) and local partners.

The Florida SBDC at UCF assists most for-profit, small businesses (as defined by the US SBA Small Business Size Standards) in Orange, Osceola, Seminole, Lake, Sumter, Volusia, Brevard, and Flagler Counties. Business located outside of our 8-county region can get assistance from your local SBDC office.

To locate your local Florida SBDC, please visit – https://floridasbdc.org/locations/

To find an SBDC outside of the State of Florida, please visit- https://americassbdc.org/find-your-sbdc/

Depending on your industry, a small business could be defined as business with a maximum of 250 employees or a maximum of 1,500 employees. They’re privately owned corporations, partnerships, or sole proprietorships that have less revenue than larger businesses. For the industry-level definitions of small business used in government programs and contracting, see U.S. Small Business Administration’s Table of Small Business Size Standards.

The Florida SBDC at UCF assist most for-profit, small businesses (as defined by the US SBA Small Business Size Standards) in Orange, Osceola, Seminole, Lake, Sumter, Volusia, Brevard, and Flagler Counties. Business located outside of our 8-county region can get assistance from your local SBDC office.

To locate your local Florida SBDC, please visit – https://floridasbdc.org/locations/

To find an SBDC outside of the State of Florida, please visit- https://americassbdc.org/find-your-sbdc/

Yes. Florida SBDC consulting is confidential. Information shared with consultants is protected and not disclosed without permission, except as required for program reporting.

SBDCs collect limited data to meet federal reporting requirements tied to funding from the U.S. Small Business Administration (SBA). This may include metrics such as jobs created or retained, capital accessed, and revenue impact. All client information is kept strictly confidential. Only aggregate, combined data is reported to funders for program accountability purposes — no individual business is identified or publicly disclosed.

We offer no-cost consulting. However, business owners are expected to:

  • Actively participate
  • Provide accurate information
  • Follow through on agreed action steps

We offer both in-person and virtual consultations. We also offer consulting sessions in group settings.

Starting A Business

We recommend beginning with our “How to Start Your Business Workbook”, available on our Resources page. This guide walks you through the essential steps of launching your business in Florida.

Additionally, we encourage you to attend our “How to Start Your Business” seminar, held monthly. It provides expert guidance and personalized support. You can find upcoming dates and register on our Seminars page.

Yes . Your business plan is the foundation of your business, highly recommended for both startups and existing businesses aiming to grow and succeed. We suggest starting with our “Business Plan Template”, available on our Resources page. This comprehensive guide walks you through the key components of a business plan and provides step-by-step guidance on how to write it effectively.

The seven most common business entities are:

  • Sole Proprietorship
  • Partnership (General/Limited)
  • Limited Liability Company (LLC)
  • C Corporation
  • S Corporation
  • Limited Liability Partnership (LLP)
  • Benefit Corporation (B Corp)

Each of these businss entities offers different liability protection, tax treatments, and management flexibility, with sole proprietorships being simplest and corporations providing strong separation but higher costs.

For more information please see the Business Entity Comparison Table.

Starting a business in Florida involves several important registration and compliance steps. Requirements may vary depending on your business structure, location, and industry. Below are a few steps. For more information please download our How to Start Your Business Start Up Guide.

1. Register Your Business with the State of Florida

If you are forming a corporation (Inc.), limited liability company (LLC), limited partnership (LP), or filing a fictitious name (DBA), you must register with the Florida Division of Corporations (commonly known as Sunbiz) via www.sunbiz.org.

Sole proprietors using only their legal name are not required to register a business entity but may still need to file a fictitious name if operating under a trade name.

2. Obtain Local Business Tax Receipts (If Required)

Most businesses operating in Florida must obtain a Business Tax Receipt (BTR) from:

  • The county where the business is located
  • The city, if operating within city limits

3. Apply for Required Licenses and Permits

Depending on your industry, you may need additional state or federal licenses. Examples include:

  • Construction and skilled trades licenses
  • Health department permits for food businesses
  • Professional licenses (real estate, cosmetology, healthcare, etc.)
  • Alcohol beverage licenses
  • Childcare licensing
  • Transportation permits

Many professional and regulated occupations are overseen by the Florida Department of Business and Professional Regulation (DBPR).

You may also need:

4. Verify Zoning and Home-Based Business Rules

Before signing a lease or operating from home, confirm that your business activity complies with local zoning regulations. Certain businesses may require zoning approval or special use permits.

5. Open a Business Bank Account

After registering your business and obtaining your EIN, it is recommended that you open a separate business bank account to properly manage finances and maintain liability protection (for LLCs and corporations).

Licenses and permits depend on:

  • Industry (construction, food service, health-related, transportation, etc.)
  • Location (city/county zoning and local rules)
  • Business activities (selling goods, handling regulated materials, signage, outdoor seating, etc.)

A practical approach is to confirm:

  • State-level professional/industry licensing (if applicable)
  • County/city requirements (business tax receipt, zoning)
  • Any operational permits (health dept, fire inspection, building permits)

The following are tax resources provided by the US Internal Revenue Service (IRS)

For specific tax questions, we recommend contacting your Certified Public Accountant (CPA).

To register for sales tax in Florida, you can visit the Florida Department of Revenue‘s website and complete the registration process. You will need to provide business details, including type and location, and may be required to submit a Florida Requisition Slip. This registration is essential for legally collecting taxes on sales.

Support for Manufacturers

SBDCs assist manufacturers with:

  • Financial analysis and cost control
  • Cash flow forecasting
  • Growth and expansion planning
  • Access to capital preparation
  • Market diversification
  • Government contracting strategy
  • Strategic planning and scaling

The goal is to strengthen operational stability and support sustainable growth.

Both. The Florida SBDC at UCF supports:

  • Prototype-stage or early production manufacturers
  • Growing manufacturers adding capacity
  • Established firms scaling operations or entering new markets

Yes. The Florida SBDC at UCF helps manufacturers prepare for:

  • Equipment financing
  • SBA loan programs
  • Conventional commercial loans
  • Lines of credit
  • Working capital funding

Consultants assist with financial projections, debt capacity analysis, and lender readiness preparation.

An FSBDC at UCF consultant can help you evaluate:

  • Debt service coverage ratio (DSCR)
  • Cash flow projections
  • Return on investment (ROI)
  • Break-even analysis
  • Sensitivity analysis for production volume changes

This ensures expansion decisions are financially sustainable.

Yes. Common areas reviewed include:

  • Cost of goods sold (COGS)
  • Pricing structure
  • Vendor sourcing strategies
  • Inventory management
  • Overhead allocation

Financial clarity often reveals margin improvement opportunities.

Yes. The Florida SBDC at UCF can help manufacturers assess:

  • Export readiness
  • International market demand
  • Compliance basics
  • Financial forecasting for export sales

Financing and Funding

Most successful start-ups get their funding from personal resources and friends and family to open.  However, since a start-up is a business that has been opened less than two years, you will want to have access to capital during those first two years.    Some banks offer credit cards or other small lines of credit for start-ups.  If your business requires more capital investment, over $50,000, a 7A loan may be a better option for you.  That will then lead to the SBA section since small businesses can get conventional loans and lines of credit (no SBA guaranty).

The Small Business Administration (SBA) guarantees business loans issued by approved lenders. The SBA loans carry relatively low interest rates with terms up to 25 years.

The six types of SBA loans are:

  • SBA 7(a) Loans: Working capital up to $5 million
  • SBA CDC/504 Loans: For purchasing owner-occupied commercial real estate
  • SBA Express loans (up to $350,000).  Revolving feature with term out.
  • SBA CAPLines: A line of credit that can be used again
  • SBA Export Loans: Financing for exporters to bolster their export activity
  • SBA Microloans: Working capital loans of up to $50,000
  • SBA Disaster Loans: Loans for businesses that have been impacted by a declared natural or economic disaster.

For more information on how to apply, please request a NO-COST consultation with a Florida SBDC at UCF Consultant

The SBA helps small businesses obtain needed credit by giving the government’s guaranty to loans made by commercial lenders (banks, credit unions, community development corporations, micro-lending institutions, and other lenders). The lender makes the loan and SBA will repay up to 85% of any loss in case of default. Since this is a bank loan, applications are submitted to the bank and loan payments are paid to the bank. The bank is also responsible for closing the loan and disbursing the loan proceeds.

SBA’s involvement is limited to reviewing the loan application submitted by the bank to assure they meet eligibility and credit standards. SBA provides the bank with a written Authorization outlining the conditions of the SBA guarantee; any material changes to this authorization generally require SBA approval. Most commercial banks and some non-bank commercial lenders participate in this program.

To qualify for a loan, lenders typically look for key elements such as:

  • A solid business plan
  • Good credit history
  • Collateral (if required)
  • Financial statements or projections
  • Proof of cash flow or ability to repay the loan

Our consultants at the Florida SBDC at UCF can help you prepare these documents and assess your loan readiness. To begin, please complete our Request for Consulting Form.

1. What Is the Purpose of the Loan?

Clearly define how the funds will be used.
Examples:

  • Purchasing equipment
  • Expanding operations
  • Hiring staff
  • Buying inventory
  • Refinancing higher-interest debt

If the loan supports revenue growth, efficiency, or long-term value creation, it may be strategic. If it only covers ongoing losses without a turnaround plan, it may increase risk.

2. Will the Loan Generate a Return on Investment (ROI)?

Ask:

  • Will this investment increase revenue?
  • Will it reduce costs?
  • Will it improve capacity or efficiency?

If the expected financial return exceeds the total cost of borrowing (interest + fees), the loan may be justified.

3. Can the Business Afford the Monthly Payments?

Review:

  • Current cash flow
  • Existing debt obligations
  • Seasonality trends
  • Emergency reserves

A key metric lenders use is Debt Service Coverage Ratio (DSCR):

DSCR=Net Operating Income / Tota l Debt Payments

A DSCR of 1.25 or higher is generally considered healthy. This means your business generates $1.25 for every $1.00 of debt obligation.

4. How Stable Is Your Revenue?

Consider:

  • Are revenues consistent or seasonal?
  • Are you dependent on a small number of customers?
  • Is your industry currently stable?

If cash flow is unpredictable, ensure you have reserves to handle slower months.

5. What Are the True Costs of the Loan?

Look beyond the interest rate. Evaluate:

  • Loan term length
  • Fees and closing costs
  • Prepayment penalties
  • Collateral requirements
  • Personal guarantees

Understanding the total cost helps avoid surprises.

6. Are There Alternative Funding Options?

Before borrowing, consider:

  • Increasing pricing
  • Improving collections
  • Negotiating vendor terms
  • Bringing in equity investment
  • Equipment leasing instead of purchasing

Debt is just one financing tool — not the only one.

7. What Is the Risk if Things Don’t Go as Planned?

Ask yourself:

  • Can the business still survive if revenue projections fall short?
  • Are you personally guaranteeing the loan?
  • What assets are at risk?

Planning for downside scenarios protects both the business and the owner.

When a Loan Makes Sense

A business loan is often a good decision when:

  • The business is profitable or near profitability
  • Cash flow supports repayment
  • Funds are used for growth, not survival
  • There is a clear plan with measurable outcomes

When to Be Cautious

You may want to pause if:

  • You are borrowing to cover ongoing operating losses
  • You do not fully understand repayment terms
  • Cash flow is already tight
  • There is no clear financial projection

Standard 7(a) SBA loans don’t require collateral if the loan amount is $25,000 or less. Above that amount, any Standard 7(a) loan must be secured with collateral.

For more information please request a NO-COST consultation with a Florida SBDC at UCF Consultant

The vast majority of small business loan applications will consider your personal credit score over your business credit score, and most don’t require a business credit score at all.

Contrary to popular belief, the SBDC does not provide grants. Small business grants can be challenging to locate, but opportunities do exist. Helpful information is often available through government agencies, state programs, and private corporations. A few reliable places to begin your search include:

While the FSBDC at UCF does not directly provide loans, we can assist you through the process of securing one. Our consultants can help you understand your financing options, prepare required documents, and strengthen your loan application.

To get started, please complete our Request for Consulting Form so we can better assist you.

Yes. Crowdfunding can be an effective option for product-based businesses or those with strong community engagement. Consultants can advise you on selecting platforms such as Kickstarter, Indiegogo, or GoFundMe, developing campaign messaging, setting funding goals, creating tiered rewards, and managing marketing outreach to drive backers. We also review your financial projections and budget to ensure your campaign is realistic and sustainable.

To get started please complete our Request for Consulting Form.

Absolutely. We provide templates, guidance on structure, and one-on-one feedback to ensure your pitch deck clearly communicates your business value proposition, market opportunity, revenue model, and financial outlook. Our consultants can also help tailor the deck to specific investor types, whether angel investors, venture capitalists, or banks, increasing your chances of securing funding.

To register for sales tax in Florida, you can visit the Florida Department of Revenue‘s website and complete the registration process. You will need to provide business details, including type and location, and may be required to submit a Florida Requisition Slip. This registration is essential for legally collecting taxes on sales.

We walk you through registering for a Florida sales tax permit and understanding compliance. Consulting appointments are available to help you stay compliant.

Marketing and Digital Presence

Yes! We provide assistance in developing marketing strategies that align with your target audience and business goals. We also provide FSBDC Resources for different Market planning.

Please complete our Request for Consulting Form to get tailored support.

Yes. Consultants can help you identify the most effective platforms for your audience, create an editorial calendar, set measurable objectives, and define key performance indicators (KPIs). We also provide guidance on budgeting, ad targeting, analytics tracking, and testing strategies to maximize ROI. Resources include platform tutorials, content templates, and case studies relevant to small businesses.

Yes. We offer advice on building a website, optimizing for search engines (SEO), and setting up e-commerce platforms. Consulting appointments are available to help you implement these strategies.

To begin, please complete our Request for Consulting Form.

Yes. Consultants can help you identify the most effective platforms for your audience, create an editorial calendar, set measurable objectives, and define key performance indicators (KPIs). We also provide guidance on budgeting, ad targeting, analytics tracking, and testing strategies to maximize ROI.

Resources include platform tutorials, content templates, and case studies relevant to small businesses.

Yes. Consultants can assess your current operations and recommend software solutions for inventory management, accounting, CRM, or ERP. We provide advice on implementation and data migration. Recommendations include both cloud-based and on-premise solutions suitable for your business size and budget.

We provide guidance on best practices such as strong password policies, encrypted communications, secure payment processing, employee training, and regular system audits.

Florida SBDC at UCF consultants help identify areas where AI or automation can improve efficiency, such as chatbots for customer service, predictive analytics for inventory management, or automated marketing campaigns. We also can provide guidance on software selection, integration, training, and ongoing performance monitoring.

Government Contracting Questions

As a general rule, we usually suggest that a business have at least two (2) years of generating revenue before they start pursuing government markets but there is no legal requirement to do so.  Some specific programs within the government marketplace may require a certain number of years of experience though.

The Florida APEX Accelerator at UCF has decades of government contracting experience, so they are your number one resource. They can assist with bid/proposal preparation, registrations, certifications, marketing, networking, and contract administration.

For more information please visit the Florida APEX Accelerator at UCF webpage.

The Florida APEX Accelerator is a no cost resource for government contractors. This program receives its funding from a combination of the Department of Defense, host institutions, and other stakeholders.  The Florida APEX Accelerator at UCF has 3 consultants on staff that work with businesses in all stages of government contracting.

Government contracting is not the best next step for all businesses but if your business is established in SunBiz, generating some level of revenue from commercial and/or residential markets, have some of the basic business building blocks in place such as a budget, business plan, and a sales process in place then getting the business positioned for government contract could be a good next step.

A serious government contractor will eventually need to register with every level of government that they are targeting.  For example, businesses interested in selling to the federal government would need to register at SAM.gov (www.sam.gov) and businesses interested in selling to the State of Florida need to a registered vendor in MyFloridaMarketplace.  You would also need to be a registered vendor for local government agencies and some prime contractors as well.

The Florida APEX Accelerator at UCF hosts a monthly “Government Contracting:  Overview” webinar that can be a great next step for your government contracting pursuits and a great way to get introduced to the program.  If you are brand new to government contracting or even down the path a bit, this can be a useful training.   You can learn more and register for this event at https://sbdcorlando.com/upcoming-seminars/

Certifications Questions

Being certified as a woman or veteran owned small business opens the doors to working with government entities and gives you a competitive edge.

There are many resources available for woman-owned and disadvantaged businsses. Please see the Small Business Administration’s website.

The purpose of the WOSB Program is to ensure that women-owned small businesses (WOSBs) have an equal opportunity to participate in Federal contracting and to help attain the Federal government’s goal of awarding five percent of its prime contract dollars to WOSBs.

To be eligible for the WOSB Federal Contracting program, a business must:

  • Be a small business according to SBA size standards
  • Be at least 51% owned and controlled by women who are U.S. citizens
  • Have women manage day-to-day operations who also make long-term decisions.

The National Minority Supplier Development Council (NMSDC) is a membership organization comprised of small minority-owned businesses and large corporate businesses. The NMSDC also offers an official certification process for minority-owned businesses.

To qualify for certification, you must meet these qualifications:

  • The business owners must be U.S. citizens
  • The business must be at least 51% minority-owned, operated, and controlled. (Per the NMSDC, a minority must be at least 25% Asian, Black, Hispanic, or Native American. Also, minority eligibility is established through screenings, interviews, and site visits. For publicly owned businesses, at least 51% of the stock must be owned by one or more minority group members.)
  • The business must be for-profit and physically located in the U. S. or its territories.
  • The minority owners must also participate in the daily management and operations of the business.

Human Resources and Team Management

An employee manual (or handbook) sets expectations, protects your business, and promotes consistency. While content may vary by size and industry, most small businesses should include:

1. Company Overview

  • Mission, vision, and values
  • Equal Employment Opportunity (EEO) statement
  • At-will employment disclaimer (if applicable in your state)

2. Employment Policies

  • Work hours and scheduling
  • Attendance and punctuality
  • Remote work policy (if applicable)
  • Introductory/probationary period

3. Compensation & Benefits

  • Pay periods and payroll process
  • Overtime policy
  • Benefits overview (health insurance, PTO, holidays, etc.)
  • Expense reimbursement policy

4. Workplace Conduct

  • Code of conduct
  • Anti-harassment and anti-discrimination policy
  • Workplace safety rules
  • Drug and alcohol policy
  • Conflict of interest policy

5. Leave Policies

  • Paid time off (PTO)
  • Sick leave
  • Family and medical leave (if applicable)
  • Military leave
  • Jury duty leave

6. Technology & Confidentiality

  • Acceptable use of email, internet, and devices
  • Data security and confidentiality
  • Social media guidelines

7. Performance & Discipline

  • Performance evaluations
  • Progressive discipline policy
  • Complaint resolution process

8. Separation of Employment

  • Resignation procedures
  • Final paycheck policy
  • Return of company property

Final Step

Include an Employee Acknowledgment Form confirming the employee received and understands the handbook.

Because employment laws vary by state, have your handbook reviewed by an HR professional or employment attorney to ensure compliance.

Proper classification is critical. Misclassifying a worker can lead to back taxes, penalties, and legal liability.

Employee

A worker is likely an employee if you control how, when, and where the work is done.
You must typically:

  • Withhold payroll taxes
  • Pay unemployment taxes
  • Provide workers’ compensation (as required)
  • Follow wage and hour laws

Independent Contractor

A worker may be an independent contractor if you control only the result of the work — not how it is performed.
Contractors:

  • Set their own hours
  • Use their own tools
  • Work for multiple clients
  • Pay their own taxes

Key Test

Agencies look at:

  • Behavioral control (how work is done)
  • Financial control (who controls expenses/payment)
  • Relationship type (benefits, permanency, contracts)

A contract alone does not determine status.

Bottom Line

If you control the process, they’re likely an employee.
If they operate independently, they may be a contractor.

When unsure, consult a CPA or employment attorney to avoid costly penalties.