Starting your own business is an exciting and rewarding experience…
It offers numerous advantages like the ability to be your own boss, set your own schedule, and make a living doing what you love.
However, entrepreneurship also comes with a lot of challenges.
Many entrepreneurs create their failure before they launch their business by not knowing how to correctly set up their business.
In this clear infographic, you will learn the 5 steps you need to take to get your business up and running…
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1. Name your Business
Choosing a business name is the first important step in starting your business.
Not only should you pick a name that reflects your brand identity, but you also need to ensure it is properly registered and protected for the long-term.
Many businesses start out as freelancers, solo operations, or partnerships. In these cases, it’s easy to fall back on your own name as your business name.
While there’s nothing wrong with this, it does make it harder to present a professional image and build brand awareness.
You should start by doing some research to make sure the name you choose is suited to your business venture and easily searchable for potential clients.
In Google, type your state’s name, along with the words “business name search.” For example, if you live in California, you would search the terms, “California business name search.”
Typically the first search result that comes up will be your state’s Secretary of State website. Use this page to search any name you might be interested in.
2. Choose the Correct Business Structure
One of the most important steps in getting your business off the ground is choosing the right business structure.
There are generally 4 main types of business structures: sole proprietorship, partnership, limited liability company (LLC), and corporation.
The decision to choosing the correct business structure is important because the type of business you create determines the type of applications and forms you’ll need to file.
There’s also very important personal liability and tax implications of each business type.
It’s important to understand each business type and select one that is best suited for your situation and objectives.
A business lawyer can help you choose the right business structure by raising all the necessary considerations and also by relieving the administrative burden of organizing, drafting, and forming your proper business structure with state and federal authorities.
3. Register Your Business With The Secretary Of State
If you are forming a Limited Liability Company (LLC) or Corporation, you need to register your business with the Secretary of State.
Most entrepreneurs choose to form their business in Delaware.
Delaware offers many clear advantages for businesses such as easier and faster processing for forming LLCs and Corporations. That's why Delaware is the most popular state to incorporate.
After you have decided which state you will be forming your LLC or Corporation, you will need a Registered Agent in that state. Registered Agent is an individual or organization who resides in your state of formation who accepts important legal documents on behalf of your company.
A business lawyer can help you choose the right business structure and relieve the stress of correctly forming your LLC or Corporation by drafting, organizing, and forming your proper business structure with the Secretary of State.
4. Get an Employer Identification Number (EIN)
Employer Identification Number (EIN), also known as a Federal Tax ID or Federal Tax Identification Number, is a number assigned by the IRS to identify a business.
An EIN is used for a number of business needs including: filing taxes, opening a bank account, and applying for business licenses.
If you have employees, you’ll need to apply for an EIN.
If you have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), getting an EIN is fast and easy by applying online using IRS’s website. This is a free service offered by the IRS and provides you with an EIN immediately.
However, if you do not have a Social Security Number, you can hire a business lawyer to act as your third-party designee to apply for your EIN on your behalf.
5. Apply For Necessary Business Permits And Licenses
Before you open your doors for business, you also need to apply and get the necessary licenses and permits you need to operate your business.
Virtually every business needs some form of license or permit to operate legally.
These may include business licenses, seller’s permit, or a zoning permit, among many others.
Licenses and permits vary by the type of business you operate and where your business is located.
Every business needs a basic operating license or permit – even if you’re home-based.
The best source for finding what licenses and permits you need for your business is SBA’s Business Licenses & Permits.
I hope you have gained some insight about how to start your business.
Starting a business demands vision and discipline just as required of any successful world-class athlete.
However, taking action is the most critical step. Successful entrepreneurs and athletes have no time to wait – they take action now.
Remember to stay passionate about what you do and have an outstanding level of determination, commitment, and consistency.
Whatever shape your business takes, be sure to remain open-minded as you face challenges you don’t see coming.
Perseverance is the hallmark of every successful entrepreneur!
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