How to Start a Business in the Virgin Islands
Who would have guessed that one of the most popular and widely recognized vacation spots in the world is also a hotbed of activity for entrepreneurs and business professionals? The Virgin Islands (which consist of U.S. and British territories) are located between the Atlantic Ocean and the Caribbean Sea, which gives them prime access to the open trade markets of North America and Latin America, among many others. This article focuses on starting and running a business in the U.S. Virgin Islands.
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Things You'll Need
- Well-written, detailed business plan
- Education, training and professional background
- Money
- Investors/sponsors
- Location/site
- Building, if applicable
- Federal and state tax identification numbers
- Business licenses and permits
- Equipment, tools and/or supplies
- Marketing material/info packets
- Other items, as requested
Instructions
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How to Start a Business in the Virgin Islands (U.S.)
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Decide what type of business you want to start and conduct market research to find out if there is a need, or demand, on the islands for the products and/or services you're offering. Ask around and use the local library, newspapers, phone directories and Internet to help you get a sense of what type of business is needed most. For example, if there's only one knowledgeable, trained and licensed hairdresser in St. Croix, who specializes in certain types of hair (such as braids and weaves), then open your own specialized beauty shop that caters to this customer base, if you have the necessary skills.
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2
Document your ideas, financial goals and long-term outlook for the new business in a carefully prepared, organized business plan. Present this detailed information to prospective financial backers of your business, including lending institutions and individual investors. Apply for both grants (which do not have to be repaid) and loans to finance your venture.
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Educate yourself by getting advice and guidance from experienced business owners in the field or fields you're interested in. Listen and take notes as they share their experiences and pick up valuable tips that will help you manage your own business. Register with entrepreneurial-based organizations such as the Small Business Administration (SBA), the local chamber of commerce and the Better Business Bureau to take advantage of the various self-help programs (most of which are free of charge) they offer to new and existing business owners to help them establish, finance and oversee their businesses.
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Pick a spot to set up shop. It needs to be in a location that is easily seen by passersby, such as a busy shopping center, near the beach or directly off a busy road. Come up with an attention-grabbing design or logo, along with an unforgettable and "catchy" business name and slogan for added appeal. Register your business name (using the Certificate of Trade Name/Corporation Registration) with the Secretary of State or Lieutenant Governor's office, depending on the legal structure of your business (sole proprietorship, partnership, corporation, etc.).
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Apply for an Employer Identification Number (EIN) or a Federal Tax Identification Number (TIN) through the Internal Revenue Service (IRS), using the IRS Form SS-4. Certain business structures, including those with hired employees, are required to get an EIN/TIN. In addition, register and fill out forms for state taxes through the Virgin Islands Bureau of Internal Revenue (the Bureau). This will allow you to get state-assigned tax identification numbers and to obtain tax-specific permits and licenses at the local government level.
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Get your business license(s) and permit(s) by submitting an application packet to the Department of Licensing & Consumer Affairs (DLCA). As part of this process, you will have to undergo multiple health, safety and welfare inspections/reviews at your business location. You'll also have to submit to a background and police records check. Furnish a copy of your previously filed Certificate of Trade Name/Corporate Registration and get a tax clearance letter from the Bureau, showing that your tax account is current.
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Staff your new business with sharp, well-trained personnel who will work hard to help bring your vision to life. Seek a tax professional to help you complete the required forms for new hires, and send this paperwork to the IRS (for federal taxes) and the Bureau (for state/local taxes). Consult with an attorney to interpret and explain legislation governing health care, unemployment, social security and other types of employee benefits.
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Tips & Warnings
Since the U.S. Virgin Islands are a U.S. territory, no passport is required for U.S. citizens traveling to the islands.
References
Resources
- Photo Credit virgin island image by Amjad Shihab from Fotolia.com
