How to start your own business?

Starting a business today is much easier with so many online incorporation services and network of vendors who can provide you with all the basic needs to start your own business.

The following are the basic steps for launching your business :

1) Preliminary research phase: Understand your market & target customers, marketing & sales channels, vendors, industry, competition. Also, test your idea with few friends/family to see if they see a need & if it helps solve their problem.

2) Prepare a business plan or basic document that outlines your business goals and how you will achieve it. Please note that this should be a live plan. You will be constantly learning and readjusting till you achieve target market fit so this is not a static document.

3) Self-fund or raise capital for your business.

4) Select a name for your business

5) Decide on a business structure sole proprietor, LLC, LLP, S or C Corporation. Please note that you can be a sole proprietor but it has few risks like personal liability. Your personal assets may be used to pay business debts. So many chose to create a legal structure. These days this can be done for reasonable costs of $200-$400 +state fees. Most CPAs, incorporation service providers can assist you with this.

6) Register your business and select a Doing business as name as applicable

7) Register for state and federal licenses/permits including EIN.

8) Register for local permits and licenses based on your industry type.

9) Open a bank account

10) Select a business location if your business requires physical location or chose a provider to get an official mailing address for online businesses. This step depends on the industry & type of business Eg: If you are starting a fitness center you require a physical location. If you are a IT consultant, you can have an online business.

 

Other steps

1) Setup books and hire a CPA/tax professional

2) Pay timely estimated taxes & manage ongoing compliance requirements.

 


Posted In: Company Formation

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