BUSINESS GUIDE A GUIDE TO STARTING OR EXPANDING A BUSINESS

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BUSINESS GUIDE 2008-09 A GUIDE TO STARTING OR EXPANDING A BUSINESS IN PADUCAH, KENTUCKY Old Market House Square Paducah, Kentucky Paducah, Kentucky is one of the most charming micropolitan cities in the United States. Strategically situated at the convergence of the Ohio and Tennessee Rivers between Nashville and St. Louis, Paducah has access to multiple markets. Interstate 24 connects with Interstate 57 to the north, providing access to St. Louis, Indianapolis and Chicago, and to the southeast with Interstates 40 and 65 in Nashville providing access to Knoxville, Memphis, Birmingham, Atlanta and Mobile. The Paducah-McCracken Riverport is located on the Tennessee River with barge access to the Gulf of Mexico via the Tennessee-Tombigbee Waterway as well as by the Ohio and Mississippi Rivers. Paducah is served by the Paducah & Louisville (PAL), Canadian National (CN) and Burlington National Sante Fe (BNSF) railroads with connections to four Class I railroads in western Kentucky. Downtown Paducah offers an eclectic mix of business, cultural and entertainment opportunities. The Carson Center, located on the Ohio River in downtown Paducah, is a state-of-the art performing arts center which hosts a wide variety of cultural performances for all ages. Lowertown is also a major cultural attraction in downtown Paducah and is home to the one of the largest artist communities in the United States. Exceptional restaurants and shops housed in historic downtown buildings complete the stage. Downtown Paducah holds numerous parades and festivals each year, and the atmosphere resonates with a combination of Paducah’s river heritage and artistic sensibilities. Downtown Paducah is only part of Paducah’s charm. Paducah is the major retail and service center for western Kentucky, southeastern Missouri and southern Illinois. Two hospitals and a thriving retail center at Kentucky Oaks Mall ﬁrmly anchor the retail and service base in Paducah. Paducah’s manufacturing base also continues to grow with new facility locations and existing industry expansions. Paducah offers a wealth of sites and buildings to ensure new and existing manufacturers continue to expand. Outdoor activities round out the balance of work and play in Paducah. Kentucky Lake, Lake Barkley and Land Between the Lakes offer local residents and visitors the opportunity to enjoy the outdoors with activities such as golf, hiking, ﬁshing, swimming and boating. Paducah invites you to come and visit the center of work and life in western Kentucky. Table of Contents Carson Center Arts Center Market Access ............................. 2-3 Education ....................................... 4 Labor & Wages ............................... 5 Local Industry .............................. 6-7 Business Park ............................. 8-9 Industrial Park ......................... 10-11 Regional Site ........................... 12-13 Utilities & Resources .................... 14 Quality of Life ............................... 15 Creating a Business ................ 16-17 Federal Responsibilities ............... 18 State Responsibilities ................... 19 Construction & Permitting ............. 20 Taxes ............................................ 21 Incentives ..................................... 22 Local Business Resources.......23-24 GPEDC Assistance....................... 25 Downtown Riverwall Western Baptist Hospital Delta Queen in Paducah Lourdes Hospital 1 2 Barge on the Ohio River Market Access Chicago Market access is essential to any company seeking to distribute its products to multiple markets. Logistical costs cut deeply into the proﬁtability of a company. Paducah’s central location eliminates a portion of these costs by providing multiple modes of transportation to a variety of locations. • Interstate 24 supplies east-west interstate highway access to ﬁve U.S. Interstates within 150 miles. Several major cities are within a days drive: Atlanta, Chicago, St. Louis, Indianapolis, Nashville, Memphis, Cincinnati, Birmingham, Detroit, Columbus, Cleveland, Ashville, Charlotte, Winston Salem, Huntsville, Des Moines and Milwaukee. • The Paducah/McCracken Riverport accesses the Ohio and Tennessee Rivers which ﬂow into the Mississippi River delivering excellent access to the ports in New Orleans and Mobile. • The Paducah & Louisville Railway is a regional railroad headquartered in Paducah and provides competitive rates and connections to four Class I railroads in western Kentucky. CN and BNSF also serve the area. • Barkley Regional Airport provides cargo and passenger services via Northwest Airlines to 92 destinations through the Memphis International Airport hub. Indianapolis Cincinnati St. Louis 70 64 57 Louisville 150 mi. 55 69 PADUCAH 66 24 65 Nashville 40 Memphis Birmingham Mobile New Orleans Future Interstate Highways Existing Interstate Highways 3 Education Paducah/McCracken County has an excellent education system to train our current and future workforce. Education for grades K-12 is superb in Paducah’s public and private schools: Paducah Independent and McCracken County Public Schools, St. Mary’s and Community Christian Academy. The local West Kentucky Community and Technical College (WKCTC) further enhances local students’ K-12 education with post-secondary opportunities. WKCTC enrolls an average of 6,000 students per semester and offers associate’s degrees, community education courses, workforce training assessments and a wealth of other services. Technical programs geared toward practical workforce skills are also offered: computer-aided drafting, diesel technology, electrical technology, industrial maintenance technology, machine tool technology, welding technology and much more. In addition, the University of Kentucky and Murray State University partner with WKCTC to staff a local engineering school that awards bachelor’s degrees in Chemical and Mechanical Engineering. Graduates receive University of Kentucky degrees and fulﬁll the same degree requirements as graduates at the University of Kentucky’s Lexington campus. Colleges & Universities within 60 miles of Paducah College West Kentucky Community & Technical College Daymar College/Paducah Technical School Mid-Continent College Murray State University University of Tennessee at Martin Southern Illinois University, Carbondale 4 Southeast Missouri State University Website Miles www.westkentucky.kctcs.edu www.daymarcollege.edu or www.paducahtech.edu www.midcontinent.edu www.murraystate.edu www.utm.edu www.siuc.edu www.semo.edu 0 0 23 36 52 53 55 Fall 2007 Enrollment 7,100 350 1,610 10,156 7,173 20,983 10,292 Kentucky Department of Education Education Report Cards McCracken County and Paducah 500 Mero Street Frankfort, KY 40601 (502) 564-4770 http://apps.kde.state.ky.us/report_card/ West Kentucky Community and Technical College 4810 Alben Barkley Drive PO Box 7380 Paducah, KY 42002-7380 (270) 554-9200 www.westkentucky.kctcs.edu University of Kentucky Engineering School Paducah Campus PO Box 7380 Paducah, KY 42002-7380 (270) 534-3133 http://www.engr.uky.edu/paducah/ Labor & Wages Over 420,000 persons live within 50 miles of Paducah, Kentucky. Over 240,000 persons are of working age, 20-64, and 171,000 are in the region’s labor force. Paducah’s regional available labor pool is over 30,000 persons. These persons are currently unemployed or working in jobs where they are underutilized in terms of skills or working hours. Paducah’s regional workforce is comprised of persons who believe Paducah/McCracken County is a great place to live and work. These individuals seek long-term employment and reasonable wages. Paducah offers both residents and employers a low cost of living with a high quality of life. The average personal income for the labor market region ranges from $19,994-$32,217. Paducah’s regional labor pool is extensive and with the assistance of the West Kentucky Community & Technical College, we can provide your company with the workforce of tomorrow, today. Average Weekly Wages by Sector All Industries Construction Manufacturing Trade, Transportation & Utilities Information Finance, Insurance & Real Estate Services Public Administration Source: www.ced.ky.gov $638 $742 $959 $616 $809 $751 $556 $730 Average Wages 2007 Mississippi Arkansas McCracken County South Carolina Alabama Kentucky Indiana Louisiana North Carolina Missouri Tennessee Ohio Georgia Illinois Virginia $609 $639 $649 $665 $697 $700 $702 $711 $718 $727 $729 $740 $792 $874 $859 Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 (502) 564-4886 http://www.thinkkentucky.com 5 U.S. Bureau of Labor Statistics Division of Information Services Suite 2860 Massachusetts Avenue, NE Washington, DC 20212-0001 (202) 691-5200 www.bls.gov Source: Bureau of Labor Statistics,http:// www.bls.gov/ 6 Computer Services Inc. Best in Class Business & Industry Local industries thrive in Paducah’s business friendly climate. Paducah has a diverse economy with medical service providers, manufacturers, distributors, marine companies, retailers and ﬁnance and service companies. The Greater Paducah Economic Development Council primarily assists manufacturers, distributors and service companies with relocations and expansions in Paducah and McCracken County. Many of these companies are located in one of Paducah’s two industrial parks, Coleman Road Industrial Park and Industrial Park West, or in Paducah’s business parks, Information Age Park and CSI Technology Park. Industrial Park West is a 200-acre industrial park in which Inﬁniti Plastic Technologies, a manufacturer of plastic media cases, and CocaCola Enterprises, a regional coca-cola distributor, have expanded operations. Paducah is also home to Dippin’ Dots frozen confections located in Coleman Road Industrial Park. Numerous marine and towboat companies, as well as several metal fabricators, also maintain operations in Paducah. Information Age Park and the CSI Technology Park provide a wealth of opportunities for service sector expansions. Information Age Park is home to several local headquarters operations and customer service centers. Lynx Services is the park’s major customer care center and provides support for the automotive glass industry. Credit Bureau Systems, a state-of-the-art company experienced in credit analysis, also operates a service center in the park. Start-up companies in Information Age Park have also experienced success. Ulrich Medical Concepts manufactures software to convert paper medical records into digital media. Additionally, Computer Services Inc., located in the CSI Technology Park, is a locally grown technology company that provides service and software options for the banking industry. Paducah is committed to our local companies and works with them on a regular basis to meet their needs for growth and expansion. Whatever your company’s requirements, Paducah can provide you with a site and specialized assistance to ensure that your company reaches its full potential. 500+ Employees Ingram Barge James Marine Lourdes Hospital Marquette Transportation McCracken County Public Schools Paducah Independent Schools United States Enrichment Corporation Walmart Supercenters Western Baptist Hospital 250-499 Employees Paducah City Government TVA Shawnee Steam Plant Vinyl Window Technologies/AlumaKraft West Kentucky Community & Technical College Lynx Services Western Kentucky Navigation US FoodService VMV Enterprises 100-249 Employees American Beverage Company AmerisourceBergen B&H Towing BellSouth Computer Services, Inc. Dippin’ Dots McCracken County Government Paducah Bank Paxton Media Group Petter Supply Regions Bank Trees N Trends Triangle Enterprises US Bank Ingram Barge James Marine Marquette Transportation Lynx Services 7 Dippin’ Dots INFORMATION AGE PARK 40 & 42 Pepsi 22c AT&T/Bell South 22b & 22c Civil Design Group 24a, 24b Credit Bureau Systems 41 39 43 26b 35 20 Middle Fork Massac Creek 36 38 60 21 22a 28 30 32 34 33 37 A&K Construction 31 23,25, 27 & 29 American Justice School of Law 8 19 24c 26a 18 37 17 26c Assoc. of Gen. Contractors 7 10 1 3 Lynx 5 9 12 13 2 62 4b 4a 6 11 16 TRACT # ACREAGE 1 2 3 4a 4b 5 6 6a 7 8 9 10 11 12 13 14 15 16 11.6 9.3 9.9 8.8 1.0 10.2 7.8 4.0 14.0 11.0 5.1 5.9 9.9 8.6 5 12.4 9.3 10.4 TRACT # ACREAGE 17 18 19 20 21 22a 22b 22c 22d 23 24a 24b 24c 25 26a 26b 26c 10.5 7.9 5.1 6.9 9.9 2.2 2.2 2.4 2.5 9.3 2.2 2.9 1.2 10.2 0.7 3.8 1.6 TRACT # ACREAGE 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 9.7 7.9 9.2 8.8 8.0 7.2 7.8 10 5.4 5.2 5.0 10.7 3.8 5.5 2.5 7.5 6.8 15 14 Marquette Transportation 6a Ulrich Medical Concepts 4b Kentucky Publishing, Inc. 100 Year Flood Zone Transmission Easements 8 Information Age Park Information Age Park is a beautiful 350-acre ofﬁce and light industrial park. The park is fully served by all utilities and has an excellent ﬁber optic infrastructure for state-of-the-art ofﬁce operations. The park is ideally located within 3 miles of Kentucky Oaks Mall with access to restaurants and shopping. West Kentucky Community and Technical College is less than 5 miles from the park and is available to meet the technological and training needs of light industrial and service based companies. Several ofﬁce and headquarters operations are currently located in Information Age Park: • Barkley School of Law - The school is a private law school that occupies a building and three lots in the park. The school’s ﬁrst classes were offered in Fall 2005. • LYNX Services - LYNX is a leader in the automotive glass claims industry and operates the largest customer care center facility in the park. • Ulrich Medical Concepts - Ulrich leads the medical software industry with its “paperless” medical documentation software and continues to experience exponential growth. • Credit Bureau Systems - Credit Bureau Systems provides complete credit management including credit reporting and collection and accounts billing services. • Marquette Transportation - Towboat company headquarters. • Pepsi MidAmerica - Regional headquarters for Pepsi distribution. • A&K Construction - Renovated a shell building into their headquarters. These companies have found the labor, site and technology infrastructure necessary to be proﬁtable in Paducah, Kentucky. A&K Construction Headquarters A&K Construction Headquarters Credit Bureau Systems Lynx Services Barkley School of Law 9 60,000 sq. ft. spec building 10 Industrial Park West Industrial Park West is Paducah’s premier shovel ready industrial park. The park has over 160 available acres and is located less than 1/4 mile from U.S. Interstate 24. Six U.S. interstates are within a 150 mile radius of the park allowing for easy transportation of your company’s product to multiple markets. The Paducah and Louisville Railway provides service to 100 acres in the park and connects to four Class I railroads in western Kentucky. The park is fully served by all utilities and ready for your next manufacturing operation. Park Infrastructure: • Atmos Energy - 8” natural gas line • Paducah-McCracken Joint Sewer Agency - 8 to 12” sewer lines • Paducah Water Works - 12” water line • Paducah Power System - may serve 60,000 sq. ft. spec building • Jackson Purchase Energy Corporation - may serve 60,000 sq. ft. spec building and provides power for remaining available acreage in the park The park has an available 60,000 sq. ft. speculative building on a 10 acre lot that is expandable to 100,000 sq. ft. Industrial Park West’s other tenants include the following companies: • Coca-Cola Enterprises - a premier distributor of Coca-Cola beverages • Inﬁniti Plastic Technologies - a leading manufacturer of multimedia packaging Both operations have built state-of-the-art facilities for manufacturing and/or distributing their products and see a productive future in Paducah/McCracken County, Kentucky. Coca-Cola Interior Coca-Cola Exterior Inﬁniti Plastic Technologies Industrial Park West Spec Building 11 12 10 1000+ Acre Regional Site The Purchase Area Regional Park is located approximately 12 miles from Paducah, Kentucky near the McCracken County and Graves County boundary. The Phase I site is currently the region’s primary focus for development and is 1,180 acres, of which over 871 are useable acres. The site is located on U.S. Highway 45 near the future Interstate 66 corridor. The Paducah & Louisville Railway has a line east of the site and can run a rail extension northward into the Phase I site. The site can be served by all utilities: • Atmos Energy - 8” natural gas line with a capacity of 500 MCF at 100 psi is located less than 5 miles from the site • Sewer - A wastewater system is planned for the site with lines ranging from 8-24” at a capacity of 3 million gallons per day • Hickory Water District - A new 16-20” transmission line from the existing Hickory District well ﬁeld and a water tank are planned for the site. • Jackson Purchase Energy Corporation - currently offers some of the lowest electric rates in the United States • West Kentucky Rural Electric & Telephone - provides telecommunications service to the site McCracken County, Graves County and the Commonwealth of Kentucky are committed to providing the infrastructure necessary to support a major industrial development in the Purchase Area Regional Park. 13 11 Industrial Resources Local utility companies provide superb services to Paducah’s business and industry sector. According to the Energy Information Administration, Kentucky has the lowest electric rates in the United States at 4.42 Cents/kWh. Natural gas is also readily available in Paducah and is provided by Atmos Energy, the largest pure natural gas distributor in the United States. Water and sewer are also available in abundant quantities with excess water capacity of over 5 million gallons per day and excess sewer capacity of 2 million gallons per day. All of these local utility companies provide excellent support to new and expanding industry. Jackson Purchase Energy Corporation (270) 442-7321 www.jpenergy.com Paducah Power System (270) 575-4000 www.paducahpower.com Atmos Energy Corporation (270) 685-8069 www.atmosenergy.com Paducah Water (270) 442-2746 www.pwwky.com Paducah McCracken Joint Sewer Agency (270) 575-0056 www.jointsewer.com Kentucky Department of Highways Local Ofﬁce 270-898-2431 www.kytc.state.ky.us Public Works Department Refuse Containers 270-444-8568 http://paducahky.gov/city/public_works/public_works.php 14 Paducah - Community Resources & Quality of Life Opportunities for recreation and entertainment are never in short supply in Paducah. Golf, hiking, boating, water recreation and much more are locally available. Paducah has several parks and golf courses that are beautifully landscaped and well-maintained. Bob Noble Park is a 116-acre municipal park that boasts six lighted tennis courts, a junior olympic size swimming pool, 20 picnic shelters, an outdoor amphitheater, skate park, softball ﬁelds and two children’s playlands. Rolling Hills Country Club and the Country Club of Paducah are excellent private golf courses nestled within beautiful, upscale residential communities. Drake Creek golf course is a delightful public course built in a new development, complete with a marina on the Ohio River, and Paxton Park is a recently remodeled municipal course that offers a quick round of golf near all the city’s amenities. Paducah also has a vibrant arts community and is home to one of the most successful artist relocation programs in the United States. Four years ago, the region along the river known as Lowertown was dilapidated with most of its historic homes in disrepair. The City of Paducah partnered with Paducah Bank to provide resources to restore this area of downtown Paducah. The City of Paducah provided funds for architectural fees, street lights, sidewalks and roads. Paducah Bank made low interest loans for up to 300% of appraised value to aspiring artists. Lowertown currently has seventy artists who have opened galleries, shops and restaurants. Prospective artists continue to express interest in the program, and the City of Paducah anticipates this relocation will continue to expand and develop in the Lowertown area. The Luther F. Carson Four Rivers Center takes center stage in the downtown area along the river. The multimillion dollar facility is a testament to the community’s dedication to the arts, hosting performances by a variety of vocal, instrumental and theatrical artists that are usually found in larger metropolitan areas. The Paducah Symphony hosts all of its performances at the Carson Center. Paducah also has a smaller performance venue for more intimate theatrical performances at the Market House Theatre. The Theatre occupies part of the old Market House on Paducah’s historic Market House Square and is a wonderful place to take in local performances. In addition, the Theatre hosts workshops and classes for all ages. Recreational opportunities abound not only in Paducah but the region as well. Western Kentucky is home to one of the largest man-made lakes in the United States. Kentucky Lake, Lake Barkley and the Land Between the Lakes are popular spots for boating, water-skiing, hiking, swimming and other outdoor activities. The lake area is less that 30 minutes from Paducah and offers exciting summer activities close to Paducah’s urban setting and cultural downtown. Paducah is the hub of western Kentucky and invites you to come see ﬁrsthand the wonderful quality of life to be found in the Paducah area. Paducah Country Club Downtown Paducah Kentucky Lake Downtown on Broadway Bob Noble Park 15 Creating and Operating a Business in Paducah, Kentucky The Greater Paducah Economic Development Council (GPEDC) specializes in the recruitment of established corporate facilities from outside Paducah into our city and county, as well as the expansion of our local manufacturing, service and distribution companies. Although GPEDC primarily assists larger, established companies, we partner with the Small Business Administration and the Kentucky Small Business Development Center to support small business and entrepreneurial development. Paducah Small Business Development Center 270-443-2783 http://www.ksbdc.org Kentucky Small Business Services Division (800) 626-2250 www.ced.ky.gov/KYEDC/BusStart.aspx A guide to assist with developing a business plan is available at www.ced.ky.gov/SMBD/ BusinessPlanOutline.aspx or by calling (800) 626-2250. Structuring your Business Sole Proprietorship - You are the sole owner of the business and all liabilities are your personal responsibility. You must report the proﬁt or loss on a Schedule C on federal income tax return Form 1040 and state income tax return Form 740. General Partnership - A partnership between two or more persons in which all partners are personally liable and each partner can incur debts, sign contracts and make business obligations. Limited Partnership - A general partnership which includes one or more limited partners who are liable only to the extent of their investment. Required to ﬁle a Certiﬁcate of Limited Partnership with the Secretary of State and county clerk. This partnership must ﬁle a U.S. Return of Partnership Income on Form 1065. General Corporation - A corporation has a life separate from its owners, is owned by its stockholders and has rights and duties of its own. Required to ﬁle Articles of Incorporation with the Secretary of State and county clerk. A general corporation ﬁles taxes on federal Form 1120 and state Form 720. Limited Liability Company - An LLC combines the limited liability of a corporation with potentially more favorable tax treatment. LLC’s are required to ﬁle Articles of Organization with the Secretary of State and are subject to state corporation income tax in Kentucky. 16 Filing Your Business Business name and ﬁling fees for all business structures must be ﬁled with the Kentucky Secretary of State. A listing of fees may be found at http://sos.ky.gov/business/ﬁlings/fees. Name Availability Name availability can be checked at http://sos.ky.gov/online and veriﬁed with the Secretary of State’s ofﬁce. If a business entity will operate under an assumed name, a Certiﬁcate of Assumed Name must be ﬁled with the Secretary of State and County Clerk. Licensing a Business in Kentucky Kentucky’s Business Information Clearinghouse provides one-stop assistance to determine which state, federal and local permits are required for your speciﬁc business. Additionally, the Secretary of State’s website provides an online search to determine potential licenses and permits for your business type at http://sos.ky.gov/business/onestop.htm. Special federal licenses are needed for the following activities. Kentucky Secretary of State Corporation Division Capitol Building Frankfort, KY 40601 (502) 564-2848 (Name Availability) http://sos.ky.gov Business Information Clearinghouse Cabinet for Economic Development Old Capitol Annex 300 Broadway Activity Rendering investment advice Preparation of meat products Production of drugs/biological products Making tobacco or alcohol Making or dealing in ﬁrearms Labeling - food, furniture, clothing, etc. Radio or television broadcasting Federal Agency Securities & Exchange Commission - www.sec.gov Food & Drug Administration - www.fda.gov Food & Drug Administration - www.fda.gov Treasury Department, Bureau of Alcohol, Tobacco & Firearms - www.atf.treas.gov Treasury Department, Bureau of Alcohol, Tobacco & Firearms - www.atf.treas.gov Federal Trade Commission - www.ftc.gov Federal Communications Commission - www. fcc.gov Frankfort, KY 40601 (800) 626-2250 (502) 564-2064 www.ced.ky.gov/KYEDC/ebpermits.aspx Providing ground transport as a common carrier Surface Transportation Board - www.stb.dot.gov McCracken County Clerk (270) 444-4700 301 S 6th St. - P.O. Box 609 Paducah, KY 42002-0609 http://www.mccrackencountyclerk.com/ City of Paducah Finance Department (270) 444-8512 300 South 5th Street Paducah, KY 42003 http://www.paducahky.gov 17 Licensing a Business in Paducah and McCracken County Business licenses for companies locating in the county can be obtained from the McCracken County Clerk’s ofﬁce. For companies locating within the Paducah city limits, information can be obtained from the City of Paducah Finance Department. Federal Employer Responsibilities Internal Revenue Service IRS Business & Specialty Tax Line (800) 829-4933 IRS Tax Information (800) 829-3676 www.irs.gov Federal Social Security (FICA) Tax - FICA insures income for retired persons. Both employers and employees pay FICA taxes on wages up to an annual maximum. Federal Unemployment Employer Tax - The Federal Unemployment Tax Act (FUTA) requires that most employers ﬁle an annual IRS Form 940. Employers may be liable for making quarterly federal tax deposits. Federal Withholding Tax - Employers are responsible for withholding federal income taxes from employees’ wages. Employer Identiﬁcation Number - Employers must obtain an Employer Identiﬁcation Number (EIN) for identiﬁcation on tax returns, statements and other documents. To apply for an EIN call the IRS Business & Specialty Tax Line for an SS-4 Form or download at www.irs.gov/pub/irs-pdf/fss4.pdf. U.S. Citizenship & Immigration Services Ofﬁce of Business Liaison 6th Floor 111 Massachusetts Avenue, NW Washington, D.C. 20539 (800) 357-2099 http://www.uscis.gov Immigration Law - All employers must require new employees to ﬁll out an Employment Eligibility Veriﬁcation Form and provide proof that he/she is a U.S. citizen or legal alien. Americans With Disabilities Act (ADA) - The ADA is a federal anti-discrimination law for disabled individuals which protects them in the following areas: job application procedures, hiring, advancement, discharge, employee compensation, job training and restructuring the job site and functions within reason. New Hire Reporting - Federal law requires employers to provide information on new hires or anyone that is rehired or returns to work after a separation of employment of 30 days or more. U.S. Department of Commerce ADA Specialist Hotline (800) 514-0301 http://www.ada.gov/business.htm Ofﬁce of the Kentucky ADA Coordinator (502) 564-3850 (877) 423-2933 http://ada.ky.gov 18 Equal Employment Opportunity Commission (800) 669-4000 www.eeoc.gov/types/ada.html Kentucky New Hire Reporting Center P.O. Box 2586 Atlanta, GA 30301-2586 (800) 817-2262 www.kynewhire.com State Employer Responsibilities State Unemployment Insurance Tax - Each employer must pay state unemployment insurance tax on the ﬁrst $8,000 of each employee’s wages. New businesses pay 2.7% for the ﬁrst three years. The rate thereafter is determined by the employer’s layoff history and state tax tables. State Withholding - Employers in Kentucky are required to withhold state income taxes from employees’ wages which are to be paid to the Kentucky Department of Revenue each quarter. Tax Registration Applications can be obtained at http://revenue.ky.gov/business/register.htm. Workers’ Compensation - Employers must secure a private insurance carrier or self-insure in order to provide Workers’ Compensation insurance coverage for employees. The Kentucky Employers Mutual Insurance (www.kemi.com) and the Ofﬁce of Workers’ Claims can provide rate information. Mandatory Posters - Employers are responsible for posting the following required posters: Kentucky Posters Wage & Hour Laws Child Labor Law Unemployment Insurance Wage Discrimination Occupational Safety & Health Act (OSHA) U.S. Department of Labor http://www.dol.gov/osbp/sbrefa/ poster/matrix.htm Federal Posters Occupational Safety & Health Act (OSHA) Federal Minimum Wage Employee Polygraph Protection Notice Employment Opportunity Family and Medical Leave Act of 1993 USERRA-Mandatory notice recommended to post Kentucky Department of Revenue 501 High Street Frankfort, KY 40620 (502) 564-4581 http://revenue.ky.gov/business/whtax.htm These posters can be obtained from the Ofﬁce of Employment & Training or downloaded at http:// www.oet.ky.gov/des/employer/other_employer_services.asp. Contact the Ofﬁce of Occupational Safety and Health for further information regarding safety and health regulations. Ofﬁce of Employment & Training Unemployment insurance Program Cabinet for Education 275 East Main Street Frankfort, KY 40621 (502) 564-2900 www.oet.ky.gov/des/ui/ui.asp Ofﬁce of Occupational Safety & Health Kentucky Department of Labor 1047 US Highway 127S, Suite 4 Frankfort, KY 40601 (502) 564-3070 ext. 240 www.labor.ky.gov/osh/oshregulations Ofﬁce of Workers’ Claims 657 Chamberlin Avenue Frankfort, KY 40601 (502) 564-5550 ext. 4423 http://labor.ky.gov/workersclaims/ 19 Construction Requirements & Environmental Permitting State Building Inspector Ofﬁce of Housing, Buildings & Construction (502) 573-0365 Division of Fire Prevention (502) 573-0382 100 &101Sea Hero Road Frankfort, KY 40601 http://www.ohbc.ky.gov Construction Requirements Companies opening a business in Kentucky need to meet federal, state and local building codes as well as provide appropriate accommodations under the Americans with Disabilities Act before constructing a new structure or renovating an existing structure. For Kentucky regulations, companies should contact the State Building Inspector and State Fire Marshall’s ofﬁces for further information. Companies locating in McCracken County may obtain further information on building restrictions and permits from the McCracken County Building Inspection and Zoning & Code Enforcement Departments. For companies also locating within the Paducah city limits, contact the City of Paducah Inspections and Planning Departments for additional information. Environmental Permitting Although Kentucky restrictions are not extremely stringent, new companies should contact the Division of Compliance Assistance Environmental & Public Protection Cabinet to determine if your business is required to obtain an environmental permit. To further facilitate the permitting process, the Kentucky Business Environmental Assistance Program provides free, conﬁdential assistance on air quality issues to businesses with less than 100 employees. This assistance includes site assessments, permit application preparation, record keeping and reporting obligations and compliance with standards. City of Paducah Inspections Department (270) 444-8690 300 South 5th Street Paducah, KY 42001 http://www.paducahky.gov McCracken County Building & Electrical Inspection Department (270) 444-4724 Zoning & Code Enforcement (270) 444-4736 300 South 7th Street Paducah, KY 42001 http://www.mccrackenﬁscalcourt.com 20 Division of Compliance Assistance Environmental & Public Protection Cabinet (800) 926-8111 300 Fair Oaks Lane Frankfort, KY 40601 http://www.dca.ky.gov/complianceassistance Business Environmental Assistance Program University of Kentucky (800) 562-2327 227 Carol M. Gatton College of Business and Economics Building Lexington, KY 40506-0034 State & Local Taxes Paducah, McCracken County and the State of Kentucky endeavor to provide a healthy business climate through equitable taxation. Kentucky revenue is generated through property, sales and income taxes. The state sales tax rate is 6%. Corporate income tax rates are provided below. Kentucky Corporate Income Tax Rates Income Level $0.00-$50,000 $50,001-$100,000 $100,001 and up 2008 4% 5% 6% 2007-2008 State & Local Property Tax Rates (Expressed in cents per $100 valuation) Category Real Estate Land Building Equipment Inventories Raw Materials Goods in Process Finished Goods Goods-in-transit 0.050 0.050 0.050 Exempt 0.450 None None None Limited 0.2489 None None None Limited 0.390 None None None Limited 0.529 None None None Limited 0.566 None None None Limited 0.108 0.124 0.124 0.150 0.211 0.211 None 0.250 0.250 None 0.488 0.488 None 0.672 0.672 None 0.0912 0.0912 None Kentucky McCracken County City of McCracken Paducah School Paducah School Other Local revenues are primarily generated by income and property taxes. The City of Paducah collects a 2% payroll tax and a general license tax on gross receipts. McCracken County collects a 1% payroll tax and a general license tax on gross proﬁts. Motor Vehicles Tangible Property Furniture & Fixtures Equipment Other Tangibles 0.450 0.450 0.450 0.2407 0.2407 0.2407 0.390 0.390 0.390 0.488 0.488 0.488 0.695 0.695 0.695 0.0956 0.0956 0.0956 McCracken County Finance Department 300 South 7th Street Paducah, KY 42001 (270) 444-4725 http://www.mccrackenﬁscalcourt.com City of Paducah Finance Department (270) 444-8512 300 South 5th Street Paducah, KY 42001 http://www.paducahky.gov Taxpayer Education Coordinator Internal Revenue Service (502) 582-6259 (800) 829-3676 (ask for ext. 6259 in Louisville) Post Ofﬁce Box 1216, Stop 531 Louisville, KY 40201 www.irs.gov (enter “Tax Workshops” in search) Education and Training Coordinator Web Development and Training Kentucky Department of Revenue (502) 564-3057 Post Ofﬁce Box 920 Frankfort, KY 40602-0930 http://revenue.ky.gov 21 Paducah, Kentucky - Business Incentives Paducah/McCracken County, Kentucky encourages the development and expansion of new and existing manufacturing, service and distribution companies. At the local level, Paducah works to ensure new companies ﬁnd sites and buildings that meet their requirements for growth and will work with you to remove any obstacles to conducting business in the region. The Commonwealth of Kentucky also offers ﬁnancial incentives to offset some of the start-up costs associated with business relocations and expansions. A summary of the Commonwealth of Kentucky’s incentives are listed below. Kentucky Industrial Development Act Manufacturers may collect a cash rebate for up to 3 percent of the gross wages of each employee who is subject to Kentucky’s individual income tax OR take credits for up to one hundred (100) percent of approved costs for up to ten (10) years, on land, buildings, site development, and building ﬁxtures and equipment used in new or expanded manufacturing operations. These incentives are available under the Kentucky Industrial Development Act (KIDA). Companies must create at least ﬁfteen (15) new full-time jobs and invest at least $100,000. Kentucky Jobs Development Act Service or technology companies that provide more than 75 percent of services to persons outside Kentucky may collect up to 100 percent credit against the state income tax and a wage assessment of up to 5 percent of the increased gross payroll of the new employment resulting from the project. Approved costs are deﬁned as up to 50 percent of the start-up costs, which include the costs associated with furnishing and equipping the facility, and up to 50 percent of the annual rent costs. Kentucky Enterprise Initiative Act Manufacturing and technology companies may receive a refund of the sales and use tax paid for construction materials, building ﬁxtures and R&D equipment purchased for the use in approved projects. Approved companies must make a minimum investment of $500,000. Bluegrass State Skills Corporation A skills training investment tax credit may be awarded by the Bluegrass State Skills Corporation as a nonrefundable credit for a company’s occupational or skills upgrade training program. The credit is equal to ﬁfty (50) percent of the approved cost incurred and may not exceed $500 per employee and $100,000 per company. Unemployment and Education Advancement Tax Credits Manufacturers receive $100 per employee for each unemployed Kentucky resident hired for at least 180 consecutive days. Employers may also collect an income tax credit for a portion of released time given to assist employed Kentucky residents in obtaining a high school equivalency diploma. The credit is calculated by multiplying ﬁfty (50) percent of the hours released by the student’s hourly salary. The credit shall not exceed $1,250. 22 Paducah Business Resources Innovation and Small Business Development Center Entrepreneurs, scientists and engineers with a passion for owning thier own companies are discovering the beneﬁts of this one-stop resource ofﬁce located in the heart of Paducah. The Innovation and Small Business Development Center (ISBDC) is a comprehensive business accelerator focused on helping entrepreneurs and inventors perfect their go-to-market business strategies. Whether you have an idea and need to take the ﬁrst step of developing a business plan or you are in the ﬁnal phase and ready to solicit investors, the ISBCD can provide invaluable aid. Developing companies may hit roadblocks in between concept development and product commercialization, often experiencing difﬁculty in obtaining capital. Many banks and venture capital ﬁrms make business investments, but private investors are hesitant to take the risk of ﬁlling the gap for new companies due to basic economics (cost vs. risk. vs. return on investment). The services and expertise provided by the ISBDC provide high value, since most startup companies do not have the resources to hire sophisticated and experienced managers and may not be knowledgeable about market analysis or how to attract investors. ISBDC Services Include: •Business Plan Coaching •Business Valuation Review •Financial Plan Analysis •Funding Assistance •Certiﬁcation and Permitting Assistance •Business Start Up Assistance •Marketing Assistance •Seminars and Workshops Innovation and Small Business Development Center (270) 443-2783 401 Kentucky Avenue Paducah, KY 42001 http://www.wrcet.com/inncenter.htm Ge V geor 23 Paducah Area Chamber of Commerce The Paducah Area Chamber of Commerce has been serving the community for over 70 years and is proud to be the largest business advocacy organization in the region. Founded in 1938, the Chamber has been able to accomplish a great deal for the community through an active Board of Directors and committee structure. The Chamber currently has over 1,000 members with 32 different committees and task forces. Some of the Chamber’s major accomplishments include lobbying for the UK Engineering School; Luther F. Carson Four Rivers Center; Purchase Regional Industrial Park; and, the West Kentucky Community & Technical College-Emerging Technology Building. It is a strong business advocacy organization and is one of only three chambers in Kentucky with a lobbyist during the legislative session. The Chamber tackles important business issues, as well as providing seminars, workshops and networking opportunities for its members. Resources available: • Membership Directory & business referrals • Maps • Relocation guide Member beneﬁts and services include: • Business advocacy • Community development • Priority project selection • Leadership Paducah • Health insurance plan discounts via Humana, Inc. • Gift certiﬁcate program via CertiﬁChecks • Networking events • Member referrals • Member-to-Member discounts • Ribbon cuttings • Mailing list Paducah Area Chamber of Commerce (270) 443-1746 401 Kentucky Ave./P. O. Box 810 Paducah, KY 42002-0810 info@paducahchamber.org www.paducahchamber.org The Chamber is working hard to promote a healthy business climate in our area. If the Chamber can help you access the local business community, please contact us. 24 GPEDC - Your One-Stop Shop for Business Growth The Greater Paducah Economic Development Council (GPEDC) specializes in assisting basic sector ﬁrms who would like to relocate or expand in Paducah. GPEDC considers basic sector ﬁrms to be companies in the service, distribution and manfacturing sectors. Retail sales are only connected at the state level in Kentucky; therefore, at the local level GPEDC does not invest in retail market studies or provide incentives for retailers. For small business, the Smalll Business Development Center at (270) 443-2783 or www.ksbdc.org, provides guided assistance to successfully starting a new venture. GPEDC is available to assist new and basic sector employers with ﬁnding the perfect site or building with the necessary infrastructure and utilities. GPEDC is the marketing entity for the City of Paducah and McCracken County and will work closely with your company to ensure that there are no obstacles for your project at the local level. Additionally, GPEDC’s staff mantains close contact with the Commonwealth of Kentucky and will work on your company’s behalf to facilitate permits and incentives so that your project can remain on time and within budget. GPEDC is also funded by private sector investors and has a good working relationship with local architects, engineeers, contractors, and other professionals that can provide beneﬁcial services for your company. George Harben Wayne Sterling President/CEO wsterling@gpedc.com The services that GPEDC provides do not stop after your company decides to relocate to Paducah. GPEDC works with local training providers such as the Paducah Career Center and West Kentucky Community and Technical College to provide you with a high quality workforce without the typical human resources issues most companies face when expanding. GPEDC is your company’s one stop shop for developing and maintaining your business in Paducah and McCracken County. We look forward to working on your next project. Vice President george@gpedc.com Nora Rikel Ofﬁce Manager nora@gpedc.com Downtown Riverwall Murals Depicting Paducah’s History 25 Greater Paducah Economic Development Council PO Box 1155, Paducah, Kentucky 42002-1155 401 Kentucky Avenue, Paducah, Kentucky 42003 www.gpedc.com ph: 800.788.0110 or 270.575.6633 fax: 270.575.6648