5 Steps to Starting Your Business the Right Way
When you choose to start a business, there are several legal obligations that you must consider from your city, state and county.
In order to be sure that your business is compliant with all of these rules and regulations, it’s important to understand what may or may not be required and where to find the right answers.
Here are 5 steps to starting your business the right way:
1. Find a Business Consultant
In many areas there are individuals known as business consultants. These are professionals that help small businesses get started successfully. They help you avoid making mistakes that could hurt your business and end up costing you more money down the road. Plus, they can help you ensure your idea is profitable. They can also help you register your business, create financial projections and connect you with resources to help you grow your business.
2. Determine Your Business Structure
There are different legal entities that you can choose, from sole proprietor to incorporation. The simplest to set up that has the least regulation is the sole proprietorship. A sole proprietorship is the easiest structure to set up; however it provides the least amount of legal protection. I always advise entrepreneurs to set up their business in a way that will provide the best protection for them and their assets right from the beginning. If you have a partner then you may want to set up a different structure, such as an LLC, an LLP or a Corporation. There are many options to choose from, so it’s important to understand your goals and where you see your business going before you choose.
3. Check Your Local Zoning Laws
You will need to check with the local zoning laws if you are looking to start a business. Certain businesses are not allowed to be run from your home, and those that are allowed may have some restrictions. After you check with your city on the zoning laws for your business, you also need to check with your HOA to be sure that they are fine with the type of business you want to run, if you are running your business from home. Most of the time if there will be no clients visiting your home, and nothing dangerous stored on the grounds, it will be fine. However, it is always best to check before spending money on your business.
4. Visit Your Local Taxing Authority
Every city has their own rules, in some cases you’ll be required to get a state, city and county license. Most of the time, they are very inexpensive. Your city taxing authority will know whether a license is required or not and how much the fee will be, based on the type of business you want to start. Fees are typically based on projected gross revenue.
If you already know what type of business entity you plan to form, plus the products and/or services you will offer, then your state taxing authority can probably provide you with an enormous amount of information regarding permits and licenses that you will need to be fully legal.
5. Check Into Getting a Sales Tax Permit
If you sell products, you will need to look into getting this permit. Many times small businesses that are sole proprietorships and do not sell products, may not be subject to this license. It is best to do your research first to determine if this is a license you will need for your business.
Once you know everything you need to pay for in terms of licenses for your business, you might want to keep a record of everything in your calendar to remind yourself of upcoming fees. Most will send you notification within 30 days of payment due but this is usually considered a “courtesy” and your fee is due regardless of whether you receive the notice or not.
Staying up to date on all accounting and legal matters is an important part of running a successful business and avoiding issues with the government or other authorities. A good business consultant can help you sort through the complicated information that is needed to start and run a successful business.
When starting your business, you want to ensure you apply for all of the proper business registrations. For many entrepreneurs, this can be confusing and time consuming. Many businesses don’t know all of the required documents needed in order to legally establish a business in their state or county, and not being properly registered can be costly. As a business consultant, I provide all the required licenses, permits and documents you need in order to legitimately establish your business in your city. I provide you with a detailed file containing all the applications and requirements needed to legitimately start your business and I can even file the documents for you.
What do you need help with in order to get started in your business? Are you interested in starting your business in less than 30 days? Check out my course “Start Your Business Bootcamp™” for a step by step training on what you need to know to start your business.