1. Select a Title and Legal Structure
You basically have 4 options when choosing a legal arrangement.2. Write a Business Plan
Prepare at least a preliminary business plan if you haven't already.3. Obtain your Federal Employer Identification Number (FEIN)
If you are set up as a Corporation, LLC or Partnership (or a sole proprietorship with employees), apply for a Federal Employer Identification Number (FEIN) from the IRS. A FEIN will be essential to start a bank account or procedure citizenship.4. Open the Company Bank Account
Pick a bank and open the business bank accounts.5. Lease Office, Warehouse or Retail Space (if not home-based)
Contacting a commercial realtor can be helpful. Be certain to arrange for utilities and office furniture.6. Licenses and Permits
- Federal Permits
Based on the type of business you are in, you might need a Federal license or permit.Most companies do not demand a Federal permit or permit. But If You're engaged in one of the following actions, you should contact the responsible Federal agency to Ascertain the prerequisites for doing business:
Investment counseling (http://www.sec.gov)
Medication manufacturing (http://www.fda.gov)
Preparation of meat products (http://www.fda.gov)
Broadcasting (http://www.fcc.gov)
Ground transportation (http://www.dot.gov)
Selling alcohol, tobacco or guns (http://www.atf.gov)
- State Licenses
Professions and some occupations need a State license or permit. Laws Differ from State to State, but If You're engaged in one of the following professions, then you should contact the responsible state agency to determine the requirements for your company:
State Licenses and Permits based on products sold.
Some state licensing demands derive from the product. Contact your state licensing authorities to determine the licensing needs of your business. As an Example, most states require special permits to market:
liquor
lottery tickets
gasoline
guns
TIP: Most individuals engaged in the types of business that require a unique State License or Permit are already aware of the requirements (i.e. an accountant is familiar with the licensing requirements for accountants).
- Sales Tax Permit
If your company sells physical products inside the country at which it does business, you might need to collect and pay sales tax.
TIP: many service businesses which don't sell a physical, tangible product are NOT required to collect sales tax, request the State taxation agency for details/clarification.
- Business License
Most Cities or Counties ask that you receive a business permit, even if you operate a home-based small business. This is a license granting the company the authority to conduct business in that city/county.
7. Hire Employees (if applicable)
Should you intend to hire your self or others as a full or part-time employee of your company, then you might have to register with the right State Agencies or acquire Workers Compensation Insurance or Unemployment Insurance (or both).8. Establish an Accounting and Record-Keeping System
Setup your home and Record-keeping system and find out about the taxes that your new business is responsible for paying.Company documents normally must be stored for 3 decades, such as: a list of all addresses and owners, copies of formation documents, financial statements, annual reports, alterations or changes to the company. All Tax and Corporate Filings ought to be kept for three or more decades.
9. Obtain Business Insurance
There are many types of insurance for companies but they're usually packaged as "General Business Insurance" or a "Business Owner's Coverage". This can cover everything from product liability. A decent policy can operate as little as $300/year and offers a great extra level of protection.TIP: Click the link to look at our favorite provider of business insurance online.
10. Systemize and Organize
Ready the company as if a person required to take it over and run it to you. This means have a method to process orders, pay bills, pay employees, pay taxes, and keep your licenses, etc.. Basically, try to create the operational element of the business as automated and efficient as possible so that you can focus on developing your business.11. Develop a Business Identity
A professionally created logo can make your company look professional and established.Suggestion: View our "Business Identity" section for help with naming, logos, trademarks and much more