Posted on Thursday, 2nd October 2008 by Lee
Three years ago when I started running a business importing and exporting products, I literally knew nothing about running a business or where to even start. This was somewhat unusual for me, since I’d grown up in a family of entrepreneurs who have run numerous businesses over the last few decades. I did a great deal of research, much easier now that we’re in the internet age, and found that many of the resources I needed were only mouse clicks away.? To help others looking to start their own businesses, I’ve compiled lists of some important steps to take and links to corresponding resources on the net. Below you’ll find some of the first basic steps when starting your business (note: information applies mainly to businesses started in the U.S.). Remember to view our other guides which go into more detail about how to set up and run a business.
1) Decide on business structure - there are several options in this area, with the sole proprietor being the simplest. You can also choose between more complicated structures, such as limited liability companies or corporations. Read this article on the considerations you must make before deciing on a business structure. http://www.nolo.com/article.cfm/pg/1/objectId/2C1A52D5-9364-4F92-AD191B56DF9D4CE6/catId/5DE04E60-45BB-4108-8D757E247F35B8AB/111/182/ART/
Then find out the requirements your state needs to start that type of business (also see if your state allows registration online)
http://www.companieshouse.gov.uk/links/usaLink.shtml
Below are quick references provided by the IRS regarding the forms you will need to run each business type and some basic information as well.
- Limited Liability Company (LLC)
In addition, if you decide to be a sole proprietor with a business name that does not include your real name, or if you operate under a business name that is different from your registered company name, you’ll want to look into filing a DBA (Doing Business As). Learn more at http://www.business.gov/guides/business-law/business-name/dba.html
2) File for a employer identification number (EIN) also known as a Federal Tax I.D. – You don’t need to have employees to get one of these, but you may need it to purchase from certain suppliers or apply for some business bank accounts or credit cards. Applying is easy, you can do it online with the IRS: http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
3) Obtain all necessary business licensing: The types of licenses and costs are dependent on the business you will be running. You’ll often have to meet license and permit requirements on a city, county, and state level. To visit the licensing requirements within each state, visit: http://www.sba.gov/hotlist/license.html
4) Planning on hiring employees? Read up on the requirements and necessary paperwork at the IRS website: http://www.irs.gov/businesses/small/article/0,,id=98164,00.html
5) Will your business need to patent or trademark anything.? The U.S. patent office has its own website that details all the necessary steps, visit the site at http://www.uspto.gov/
6) Apply for business banking account - Finding good business bank accounts for your business depends on several factors. Information in this area is constantly changing, so it is best to do a bit of research using google before you decide. The easiest solution is to contact your local banks as most offer business banking already and opening an account with a bank where you already have accounts may prove to be the best option. Below are a few links to get you started:
- An article explaining some considerations for choosing your account: http://smallbusiness.aol.com/article/_a/how-to-choose-a-bank-for-your-small/20080819135809990001
- 7 reasons why you should open a business checking account: http://x.thexbanker.com/2008/05/26/7-reasons-to-open-a-business-checking-account/
- eHOW article on how to opening a business checking account: http://www.ehow.com/how_2120980_open-business-checking-account-online.html
7)Apply for business credit cards: Great way to start building credit history for your company, and many offer incredible rewards for their use.
- List of credit cards you can browse over to find one you may be interested in http://www.cardratings.com/ and http://www.cardoffers.com/ and
- This site actually has brief reviews of each card http://reviews.creditcardflyers.com/
8) Examine whether your business will need any type of insurance: Read over this guide to business insurance to see what type you may need: http://sbinformation.about.com/od/insurance/Small_Business_Insurance.htm
This is just a basic overview of the steps you’ll need to take to start up your business. While many entrpreneurs ignore or skip some of these steps, you should plan to at least get most of them done since you’ll need to take care of these steps eventually if you plan on running a serious long-term business.
Tags: business guide, business start up, business structures, home based business, home business, home jewelry business, how to start a business, start a business, work at home
Posted in Business Guides, Featured | Comments (4)
October 2nd, 2008 at 6:37 pm
[...] See original here: Starting a Business - 8 Important Steps to Starting Up [...]
December 2nd, 2008 at 11:17 pm
This is a great list. Check out this video blog on starting and expanding a business in Hong Kong, China, and Asia. A great supplement to above, I think. http://blog.servcorp.com.hk
April 3rd, 2009 at 8:13 am
Thanks for the advise. I think these guys are a great example of someone who’s followed your thoughts.
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January 27th, 2010 at 1:16 am
Yes, I do think these kind of tips are so important. Thank You.