Opening a CNC Machine shop in PA
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  1. #1
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    Default Opening a CNC Machine shop in PA

    Hello, I have ventured into this forum in the seeking of some guidance.
    I desire to open up CNC Machine shop pertaining 4-5 employees under.

    I do already have,
    Have a spot where I want to lease for location.
    Have a team(workers) ready to go once shop is set.
    Have a supply of customers and order ready to be worked on.
    Have secured fund to purchase all the necessary tools and equipment.

    However I am complete illiterate when it comes down to zoning, permits, and license etc.
    I will be getting business license thus tax ID number foremost(I think that is the first step?).
    Is there any other permits or license required before start conducting a business?
    Or as long as I have spot leased, formed a business entity, thus receive tax id to pay according taxes, purchase needed tools and equipment, i can pound out ordered product by customer.

    forgive me if i seem to be too unlettered with these matters.
    However I have to start at somewhere and felt it would be better to ask real people who has experience.
    Thank you in advance and any advise would be greatly appreciated.

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    You should be asking your accountant these questions.

    You will need to setup your insurances. Workman's comp, Unemployment, Commercial General Liability to start.
    You will need a Federal EIN for your payroll taxes.

    You may need to pay for various local/state permits, personal property taxes, state/local income taxes, etc. This varies by jurisdiction. If you will be collecting sales taxes you will need to setup that account with the PA Dept. of Revenue.

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  4. #3
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    Quote Originally Posted by domidomi0115 View Post
    Hello, I have ventured into this forum in the seeking of some guidance.
    I desire to open up CNC Machine shop pertaining 4-5 employees under.

    I do already have,
    Have a spot where I want to lease for location.
    Have a team(workers) ready to go once shop is set.
    Have a supply of customers and order ready to be worked on.
    Have secured fund to purchase all the necessary tools and equipment.

    However I am complete illiterate when it comes down to zoning, permits, and license etc.
    I will be getting business license thus tax ID number foremost(I think that is the first step?).
    Is there any other permits or license required before start conducting a business?
    Or as long as I have spot leased, formed a business entity, thus receive tax id to pay according taxes, purchase needed tools and equipment, i can pound out ordered product by customer.

    forgive me if i seem to be too unlettered with these matters.
    However I have to start at somewhere and felt it would be better to ask real people who has experience.
    Thank you in advance and any advise would be greatly appreciated.
    What county in PA? I may be able to put you in touch with people that can help.

  5. #4
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    location for business would be in Bucks county PA.
    Thank you for your gesture, and it would be greatly appreciated if you can share some direction for path.

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    I'm in Bucks County. My email address is [email protected]. We can discuss this directly, if you like.

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    Quote Originally Posted by jancollc View Post
    You should be asking your accountant these questions.

    You may need to pay for various local/state permits, personal property taxes, state/local income taxes, etc. This varies by jurisdiction. If you will be collecting sales taxes you will need to setup that account with the PA Dept. of Revenue.
    I will hire Accountant for all the tax+financial related matters.
    Im more of trying to figure out what are the including process/step and whats the order for those steps to be followed.
    Also seeking regards to Local/State, or in general permits to opening a CNC machine shop.
    (what permits needed, and if it's more then one, in what order is needed to be acquired etc.)
    Thank you reply.

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    "However I am complete illiterate when it comes down to zoning, permits, and license etc."

    Of these issues the zoning could be by far the most important and first thing to verify. If what you plan on doing is not allowed by the location's zoning you're dead. The local zoning authority should help you with this.

    State or local government should be able to help with the required permits, licenses, etc. Areas that encourage business growth usually do a good job guiding you through the permit and licensing process.

    Most government entities (even the IRS) are pretty forgiving if you've failed to get required permits, etc as long as there's no fraudulent intent on your part. They aren't forgiving about zoning violations though.

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    PA is friendly to business and they provide decent resources to help start and run a business.

    Business Assistance - PA Department of Community & Economic Development


    Edit:
    Check with the workforce development center as they may have certain programs available when hiring. They actually want to help you and can save you money.

    Additionally, check the Economic Zones in your area. If you are getting a loan, the city and county can do up to $50K each at 3% interest.

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    A good accountant and a good lawyer to walk you through business setup. To make sure taxes are collected and paid on schedule. Employee withholdings come out of paychecks and sent to the correct agencies. Show you forms for Tax exempt, resale so you don;t pay tax where you do not have to. As mentioned...make sure your signing a lease in a zone that allows manufacturing...make sure the lease is correct.

    I'm in NYC so we need Certification of Fitness or whatever they call it to run Air Compressors, Forklifts and Oxy/Act...the last one makes sense, the others.

    Just remember free advise is worth exactly what you pay for it...that is why its good to have professionals to lean on at startup.

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    Quote Originally Posted by SIM View Post
    A good accountant and a good lawyer to walk you through business setup. .................................................. ...........................................
    After three years from startup my first business was running $moothly. Rules, regulations, licensing, etc were learned along the way. I violated a few to get rolling, nothing real serious, primarily zoning and a bit of OSHA.

    About that time the local SBA was offering a two day course for business startups and struggling businesses. I signed up, what did I have to lose? Maybe I'd learn I was doing some things wrong?

    There were speakers from the city, county, state, even the IRS, those pretty well covered regulations, licensing and so on. The remainder were reps from the bar association and accounting groups. Mainly the last two emphasized how important they are to small business startups. The sum total of what I came away with was if I had taken that SBA course and followed their text-book advice prior to startup I never would have gotten off the ground. Plus, the lawyer and accountant would have done their best to bleed me dry money-wise.

    On edit: eventually I did get a lawyer and accountant. The lawyer was because I got sued, three nuisance law suits. The accountant was because a capital gains tax deferral was too complicated to handle myself.

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    Quote Originally Posted by Doug View Post
    ...the local SBA was offering a two day course for business startups and struggling businesses...The sum total of what I came away with was if I had taken that SBA course and followed their text-book advice prior to startup I never would have gotten off the ground. Plus, the lawyer and accountant would have done their best to bleed me dry money-wise.
    Amen. AaaaaMEN! I took the same course in '71. I finally realized it was a waste of time when I got one-on-one with the SCORE (Service Corps Of Retired Executives) volunteer assigned to me. ZERO knowledge of machining processes or anything more technical than a P&L statement. To him all business was the same whether it was manufacturing, auto repair, or retailing cupcakes. He was probably younger than I am now, but at least I know about meeting a payroll. I am sure that during his career he had only collected a paycheck. Radically different mindsets involved. You need a lawyer and an accountant, preferably a CPA. But don't let them run your enterprise.

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    Anybody besides me taking bets that the OP and the blog guy are the same dude?


    Sent from my iPhone using Tapatalk Pro

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    Quote Originally Posted by domidomi0115 View Post
    Hello, I have ventured into this forum in the seeking of some guidance.
    I desire to open up CNC Machine shop pertaining 4-5 employees under.

    I do already have,
    Have a spot where I want to lease for location.
    Have a team(workers) ready to go once shop is set.
    Have a supply of customers and order ready to be worked on.
    Have secured fund to purchase all the necessary tools and equipment.

    However I am complete illiterate when it comes down to zoning, permits, and license etc.
    I will be getting business license thus tax ID number foremost(I think that is the first step?).
    Is there any other permits or license required before start conducting a business?
    Or as long as I have spot leased, formed a business entity, thus receive tax id to pay according taxes, purchase needed tools and equipment, i can pound out ordered product by customer.
    Generally, when starting from scratch you can take a tiered approach. If the building is zoned industrial, you won't need a special permit to put a shop there or a variance, so that's in your favor. Generally, incorporating is pretty easy in most states and can be done online, which would give you a tax ID. Ask your accountant about a business license, some places want it, some don't. Once you have a corporate entity you're pretty much set.


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