A recent survey showed that more than 78% of small businesses reported profits. This is a great sign for those who dream about owning their own business one day.
Making profits from a startup isn’t easy, but with the right tools, you can make it happen. Learn how you can reach your goals with this business startup checklist.
Select a Legal Structure and Business Name
The first step in any business startup checklist is to select a legal structure and business name. The four choices of legal structures include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Corporation or S-Corporation
Once you have your choice down, you can focus on creating a business name. You can use name generators and research the current market for ideas. Be sure to choose something unique that highlights your company’s services.
Write a Business Plan
A new small business of any kind needs a business plan for various reasons. First, the business plan will force you to think outside the box and plan out all details of the business.
Second, a business plan can explain the necessary finances you’ll need for your startup and when you can expect to break even. Last, if you don’t have the funds for a startup, having a business plan can help you obtain investors or figure out if eCommerce lending is an option for you.
Obtain a FEIN
Every business ownership legal structure, besides a corporation, is required to have a Federal Employer Identification Number (FEIN). You’ll need to apply for this before opening a bank account or processing payroll.
Open a Company Checking Account
A small business owner should never use personal finances to pay for company expenses. Mixing the two can lead to legal trouble and tax implications down the line.
A business account might have different requirements, so check with the bank before opening the account. You’ll want to be aware of complex requirements ahead of time.
Obtain Licenses and Permits
The type of business you own will determine which licenses and permits you need. Most businesses don’t require a federal license or permit. State licenses and permits are more common.
In most cases, you’ll at least need a business license and sales tax permit. You’ll also be required to have a certain form of business insurance depending on the area you operate in.
Create a Business Identity
Once you have all of the logistics down, you can focus on creating a business identity that will help create successful marketing campaigns. If you don’t have the necessary background to create a marketing plan, hire a company that does.
View here for more information on how you can market and grow your startup business.
Start Working on Your Business Startup Checklist
Although every business is different, the startup process is similar for almost every industry. This business startup checklist is something you can start working on now if you have a great business idea.
Once you have all of the legal requirements out of the way, you can start focusing on what makes your business special.
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