Blockchain services offer a public ledger for businesses seeking a more efficient method to manage their projects, funds, and information. While most people identify blockchain with bitcoin, it may be used for almost any form of commercial transaction.
Table of Contents
Follow these ten steps to launch a blockchain services business
Plan your Blockchain Services Company
Make your Blockchain Services Company a Legal Entity.
Register your Blockchain Services Company for Taxation
Create a Business Bank Account and a Credit Card
Create Accounting for your Blockchain Services Company
Get the Permits and Licenses You Need for Your Blockchain Services Business
Get Blockchain Services Commercial Insurance
Create a Business Brand for Blockchain Services.
Make a website for your Blockchain Services Business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started with blockchain services. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a blockchain services company?
If you are starting out on your own, you should just need the expense of computers and internet to construct your first prototype. You’ll also require liability insurance, which may vary in price depending on the limits you choose and the services you provide. Finally, you should probably invest in experts that can provide you with accurate information about how the blockchain is developing in the legal and public spheres.
What are the recurring costs of a blockchain services company?
Labor is often the highest cost for blockchains since the firm need experienced individuals to build and market the platform. You’ll also need to include in the cost of power, insurance, and the direct cost of the place you’re renting.
Who is the intended audience?
Despite its association with bitcoin transactions, the blockchain may be used in almost any business. In essence, the blockchain makes it almost hard to hack into a company’s information, which is becoming more important as virtual fraud grows. But, more importantly, the blockchain enables unprecedented levels of communication via the use of smart contracts. These unique if/then expressions are so adaptable that they can be used in industrial initiatives in ways we can’t even envision.
For example, the building sector may utilise blockchain to make working with various providers simpler. When every activity is visible in the ledger, there is almost no mistake regarding who is accountable for what. It is already being used in the real estate market to coordinate transactions and even make investing simpler. Because the blockchain can deal with such little amounts, a person might acquire 2 mm of a property if they so desired!
How can a blockchain services company generate revenue?
Blockchains will generally charge a one-time project fee or set up a SaaS model. They may also charge for transaction verification throughout their network. One of the most significant benefits of blockchains is their ability to manage micropayments. These fees are often paid in cryptocurrencies such as Bitcoin or Ethereum.
How much money may you charge your customers?
The blockchain is still young enough that owners are unsure how to charge for their services. Transaction fees, for example, have varied from less than $1 to more than $50! Look at what your immediate rivals are charging to determine your own price. If you’re starting off, try analysing how much a blockchain will save a customer in terms of labour and direct expenditures over time, and then pricing your blockchain based on these figures.
How much money can a blockchain services company make?
Blockchains may be immensely lucrative if their technology can be scaled to satisfy public demand. If you price $50,000 each project and have a 25% profit margin, you’d need to sell 8 projects to generate $100,000 in profits per year.
How can you increase the profitability of your company?
Consider expanding into new sectors to expand your company. You might also provide additional programming services, such as back-end software that allows companies to accept cryptocurrencies.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal business organisation, such as an LLC or corporation, shields you from personal liability if your blockchain services company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To establish a blockchain services firm, some state licences and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Occupancy Certificate
A blockchain services company is often managed from an office. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can receive a valid CO for a blockchain services company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building regulations and zoning standards for the area of your business to verify that your blockchain services company will be in compliance and able to receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Blockchain Services Company
Focus on the inherent advantages that a blockchain may provide to organisations of all sizes. If you’re marketing your blockchain platform to retailers, emphasise how the blockchain reduces fraud. The ideal place to start may be right in your local neighbourhood, but you may also wish to network on a global scale at one of the numerous blockchain conferences hosted around the globe. Internet advertising through sponsored Google advertisements may also help prospective customers locate your specialised services.
How to Keep Customers Returning
Customers want a platform that constantly works and runs properly. Clients also desire a simple programme so that they don’t have to spend months training everyone. Provide great support to customers who have queries or want emergency help.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.