Considering starting a business? Make sure you take the necessary procedures to ensure your success. Using this checklist, you can get ready to begin your firm.
What you’ll discover:
1. Develop a Business Plan
2. Decide on a legal business structure
3. Establish a formal business organization
4. Register a company name
5. Create a website as well as social media profiles.
6. Get an Employer Identification Number.
7. Safeguard your copyrights, trademarks, and trade names.
8. Configure billing and invoicing
You may wish to take certain important actions before starting your small company to guarantee its success. Writing a business plan, registering a company name, creating a website and social media accounts, and filing for an Employer Identification Number for tax purposes are all important first steps. The checklist below might assist you in navigating the procedure in the hopes of a successful launch.
1. Develop a Business Plan
Writing a Business Plan is often the first step for a small company owner. A Business Plan may help a company stay focused on success by laying out specific measures.
Although there is no standard structure for this strategy, the following information may be useful:
Your business idea.
Mission.
Goals.
Strategies.
Structure of the company.
Marketing strategy.
Plan your finances.
Analyze your competitors.
Adding action items, or a to-do list, with a timeline and deadlines, may help you achieve your company objectives.
A Business Plan might assist you in attracting investors or financing. Several investors or financing institutions may be hesitant to accept cash for a new project unless they see a good Business Plan.
2. Decide on a legal business structure
You should consider what kind of legal company you will create before starting your small business. Your company structure will have an impact on your taxes, legal liability, and other factors. You have the option of forming your small business as a corporation, sole proprietorship, partnership, or limited liability company (LLC). Finally, the legal structure you choose for your small company will most likely be determined by your business objectives and existing requirements.
If you do not choose a structure, you will most likely be classified as a sole proprietorship or a general partnership (if you have a partner).
3. Establish a formal business organization
In order to legally function, new company owners must often seek for permits and business licenses in their region. Licenses and permits from both state and municipal governments may be necessary to meet different legal criteria for:
Fire protection.
Maximum occupancy.
Requirements of the building code.
Permits for food serving are required.
If you desire to create a formal legal organization for your company that is not a sole proprietorship or partnership, you must normally register and submit Articles of Incorporation with a state government. These papers include your company’s name, address, business objective, legal structure, stock information, and other information. Certain LLCs may also need an Operating Agreement. A Registered Agent — a person or firm who may receive legal and tax papers for your business — is usually required in your paperwork. The agent might be you, a service, or someone you trust, as long as they fulfill the legal criteria of your jurisdiction.
4. Register a company name
It is best to choose a name that complements your company and attracts clients. State rules often prohibit businesses from using a name that is already in use or that is too similar to one that is already registered. A company name search in your state’s database, or nationwide, might be beneficial in determining if the name is already in use by another firm. After you’ve decided on a company name, you should register it before someone else does.
Even if you start a sole proprietorship, you need register a distinct company name for branding and operations. To do business, you may be needed to register a false business name or a “doing business as” (DBA) name.
5. Create a website as well as social media profiles.
Creating a website for your small company can aid in the discovery of new clients or consumers. Moreover, since many customers use social media to find new companies, creating social media profiles is an excellent idea. This is particularly true if digital marketing is a component of your Business Plan and marketing plan. Including and clearly display your: on your website and social media pages.
Name of the company.
Location. Industry.
Information about how to contact us.
You may want to consider creating an Internet Privacy Policy depending on how your consumers will engage with your company online or what data you will be gathering.
Facebook, Instagram, LinkedIn, and Twitter are the most important social media accounts to have. You may also want to create a Google Business account and a YouTube channel. Social media accounts are ideal for running online advertisements as part of a digital advertising plan.
6. Get an Employer Identification Number.
Each small company must apply for an Employer Identification Number from the Internal Revenue Service (EIN). If any of the following are true, you may need to apply for an EIN:
You have workers.
Your company is either a corporation or a partnership.
You are responsible for filing any employment tax returns.
You have withheld income taxes or a Keogh plan.
If your company is engaged in any of the following, you may additionally need an EIN:
Except for some grantor-owned revocable trusts, trusts, IRAs, and Exempt Organization Business Income Tax Returns.
Estates.
Mortgage investment channels in real estate.
Organizations that are not for profit.
Cooperatives of farmers.
Administrators of plans.
If you apply for an EIN online, your small company will generally get a number very immediately. Nevertheless, faxing or mailing your application will usually result in a lengthier wait time for your EIN. Before you can file a tax return or make a deposit for your small company, you must normally get an EIN.
7. Safeguard your copyrights, trademarks, and trade names.
If your small company has any unique logos, names, or words that you wish to protect, you may need to register trademarks and apply copyright protections. They are often referred to as intellectual property. Although you may still have certain legal safeguards if you do not register your intellectual property, doing so provides you with extra protections.
The requirements for registering a trademark differ by state. You may also apply to the US Patent and Trademark Office to register your small company name. A countrywide check is required to ensure that the name is not already in use, as well as satisfying specific application conditions. When you trademark your company name, logo, or other mark, it is protected on a national level.
Copyright protections enable a small firm to prevent creative works such as menus, software, images, and others from being used without authorization by others. If you copyright your company’s creative works, establishing that they are distinctively yours will be easy if necessary. It may also be simpler to demonstrate how unauthorized usage of your work harmed your firm.
8. Configure billing and invoicing
Another critical step in beginning your small company is to set up a billing and invoicing system. For example, you may handle payments on paper, go completely paperless and online, or employ a hybrid approach. It is advisable to do extensive research before selecting a payment processing firm since some provide a fixed cost others charge different prices for their services.
Several online accounting platforms allow you to create invoices and email them to your customers. Then, using the invoice link, your consumer may pay you immediately.
