Choosing Your Business Name
When choosing your business name, you’ll want to think about what your business represents and find a name that embodies your brand. Make sure to do a trademark search to make sure your desired name isn’t already in use by someone else. Be sure to buy your domain and reserve your social media handles.
Register Your Business
Once you’ve decided on a business name, it’s time to make it official. Register your business as a legal entity with the applicable governing body for your state. How and where you need to register depends on your business structure and business location. For most small businesses, registering your business is as simple as registering your business name with state and local governments.
When choosing your legal structure, you must choose the structure that’s right for your business. The legal structure you choose for your company will impact your business registration requirements, the amount you pay in taxes, and your liability. Make sure to do your research to find the best option for your unique business.
Federal and State IDs
An important step when establishing your business is obtaining the appropriate state and Federal IDs. Your employer identification number (EID) is your Federal Tax ID.
You’ll need this to pay federal taxes, hire employees, open business bank accounts, and when applying for business licenses, permits, and business accounts. It’s free to apply for an EIN, which you should do after registering your business.
Some states－not all states, require you to get a state tax ID as well. This ID is tied directly to whether or not your business must pay state taxes. Now would also be a time to apply for any federal and state licenses and permits needed to remain in compliance.
You’ll also need to get a federal license or permit if your business activities are regulated by a federal agency. Please do your research to verify the requirements for your industry.
Conducting market research before launching your business will allow you to determine if there’s an opportunity to turn your idea into a successful business. It’s also a way of gathering data about potential customers and businesses already in operation online and in your area. Use that information to find a competitive advantage for your business.
Write Your Business Plan
A smart decision you can make for your company is creating a business plan. Your business plan is the foundation of your business. It’s the blueprint for how to structure, run and grow your business. You’ll use it to persuade people to work with you and convince investors to invest in your company.
Open a Business Bank Account
When it’s time to start accepting or spending money as your business, it’s important to separate your funds by openings a business bank account. A business bank account will help you remain legally compliant and protected. Most business accounts offer perks that come with a personal bank account. It increases your purchasing power, professionalism, preparedness, and purchase protection for your customers.
Funding Your Business
Starting a business involves a lot of planning and preparation. One important step is figuring out how much money you need to get started. If you don’t have the cash on hand, you’ll either need to save up or borrow the necessary amount. Thankfully, there are more ways than ever to find the start-up capital you need.
There are additional steps and benefits not mentioned here, for example, obtaining your DUNS number, net-30 accounts, business credit, and business loans. There’s much to learn.
P.S. －You’re amazing! Thank you for reading until the end. As business owners, we must practice self-control in business. Please be sure to check out our recent blog post, The Importance of Self-Control!
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