Starting a business doesn’t have to be an overwhelming process. By following a few simple steps you can quickly and painlessly get your new venture off the ground and begin to see your ideas give birth to business success. The following are some basic steps to guide you through the process of starting a company.
Developing a Business Plan
A formal business plan lays out your goals and objectives for doing business. It creates a detailed outline of what you want to accomplish with your business and how you will go about it. Be careful not to skip this step or take it too lightly because your business plan will guide you through starting and running your business.
Seek Business Assistance
Regardless of where you live there’s a good chance that your County and/or State will have resources and business assistance available for new entrepreneurs. These tools and resources are available because they want you to be successful in your new business. New business supports and leads to thriving local economies. New businesses bring jobs and all kinds of new opportunities to the area. Take advantage of these resources to give your business every advantage possible.
Set Up a Legal Business Structure
This is where you decide which form of business ownership and legal structure is best for you. Types of business structures include a sole proprietorship, limited liability company (LLC), Corporation, S Corporation, nonprofit or cooperative.
Register Your Business Name
Unless you are planning to operate a sole proprietorship under your own name you will need to register your business name or “doing business as” with your local or state government. Many new business owners will spend way too much time and energy worrying about the business name. Remember your business can operate under a different name than the formal legal name of your company. So it is usually best to just choose a company named and move on. Don’t spend too much time worrying about this.
Get a Tax Identification Number
You will need to check with the IRS and your State Department of revenue to determine which tax identification number you will need. An Employer Identification Number or EIN can be obtained directly from the IRS and you will need it from the beginning to open a business checking account.
Local Business Requirements
You’ll also want to check with your county and/or city for information regarding local business requirements to ensure compliance. Obtaining local permits and business licenses is usually a simple process of filling out a few forms and paying the required fees.
Taking the time to set up your business properly and methodically could save you a lot of headaches in the future.