Starting a Business? Start Here
Planning is everything when it comes to starting a business. But, at some point, it is time to pull the trigger and get the ball rolling. The business part of things can be nerve wrecking. Maybe you’re a baker and know nothing about business. Don’t let the fear be the reason you don’t take the plunge to financial success.
Starting a Business Step One, Registration
You have you business plan in order, you have determined the structure of the business, now its time to bring it to fruition. Contrary to what you read online, registering your business is not difficult. There are many law firms and online legal sites (like LegalZoom) that offer the service to register your business for you for around $100. This is on top of the charge in the state of choice. For example, if you registered in Ohio, it would cost you $100 to register your company with the state, and another for the legal company. Let’s save you $100.
The first thing you should do is go to the Secretary of State’s website for the state you intend on registering. The usually will have a walk through to help you get started. If you have questions, there is typically support documentation or a phone number to call. Times have changed from the day where you had to be a professional to navigate the legal web of bureaucracy.
Starting a Business Step Two, Tax ID Number
Once you have registered your business, you’ll be given certification to get an Employer Identification Number (EIN). Before you freak out and think “But I dont have employees!” Relax. This is the equivalent to your Social Security number. If you have a sole proprietorship, you may be able to skip this step. However, if you are looking for a business bank account, this is a must. Just like when you’re personally applying for a credit card or opening a bank account. A company needs to have a “social security number” or an EIN.
Starting a Business Step Three, Open a Bank Account
One of the biggest rookie mistake is when business owners comingle business and personal funds. Having good accounting, either through software or spreadsheets, will help keep good tabs on your account, but it gets hairy quick. Just make the smart move right away. When you get your EIN, get a bank account to keep your accounts separate. Moving money from account to account is easily traced, so you wont have the IRS knocking at your door.
Conclusion
These are just three steps to help you get started. There may be much more you need to do in your sector, but these three are universal steps that every business needs to do. Just work through these three and you are on your way to having a business.
Disclaimer
Once again, I am not a financial advisor. These tips are some things I have validated with my own personal experiences. If you feel you need more personal advice, please consult a professional financial advisor. Dont forget to check out the Book List for published authors on this topic!
