You’ve finally decided it’s time.
You’re going to start your own business.
But before hanging your shingle, there’s a lot of work to do. You need to make sure you’re on the right path, and that the business will be legitimate.
Step 1: Research
Before you start a business you have to know that there’s a need out there for the services or products you plan on offering. A gut feeling that it’s going to work out doesn’t count. Conducting market research to gauge the need for your business is crucial for success.
Step 2: Business Plan
Now it’s time to sweat the details. Your business plan will cover everything from location to funds. For a better idea of what information you’ll need for your business plan, here’s an outline:
- Executive Summary
- Business Description
- Market Analysis
- Products and Services
- Management and Organization
- Marketing and Sales Management
Step 3: Funding
How do you plan on paying for starting and running your business? You may have an amount that you’re contributing, you may have investors, or you may need a bank loan. The business plan you created in the previous step will be needed to help secure a loan.
Step 4: Business Structure
Which business structure is best for your business? Choosing will involve some research and might require consulting your lawyer. Choices include sole proprietorship, LLC, and S-Corp.
In addition to choosing your business entity type, you’ll also have to settle on where to incorporate. For local small businesses, this answer is simple. But for medium-sized business with offices in multiple states or online businesses, you may want to choose a state with a friendly tax climate.
Step 5: EIN
In order to open a business bank account, you must have an EIN, or Employer Identification Number. It will also be needed for any other application process your business will go through, like filing taxes or applying for permits and licenses.
Step 6: Business License
For legal reasons, make sure your company has all the licenses and permits needed to operate in your location.
From initial research to obtaining your business license, MaxFilings is here to help guide entrepreneurs through the entire incorporation process. Contact us to get expert advice on starting your own company, or continue browsing our website to keep learning.