Business Start-up Checklist

Posted by David Guerrero

Here is a checklist thats meant to help you start your new business as easily as possible

First things first. 

1.Select a Name and Legal Structure

You basically have 4 choices when selecting a legal structure.

1. Sole Proprietorship (form a Sole Proprietorship Now)

2. Partnership (form a Partnership now)

3. Limited Liability Company (LLC)

4. Corporation ,  S-Corporation

• Review the different types of corporations here

2. Write a Business Plan

If you haven’t already, prepare at least a preliminary business plan. Here is an online business plan software that will guide you step by step to ceate a professional business plan.

3. Obtain your Federal Employer Identification Number (FEIN)

Once you are set up, you need to apply for a Federal Employer Identification Number. It almost works as a Social Security Number for your company.  A FEIN will be necessary to open a bank account or Online Payroll Services.

4. Open the Company Bank Account

Select a bank and open the company bank account. Business checking accounts have certain similarities to personal accounts, but its fee structure varies. Business Checking accounts have certain limits on transactions, deposits and balances you can have. Check with your bank to make sure you're aware of these fees, and its transaction limits. 

5. Obtain Licenses and Permits

A. Federal Permits

Depending on the type of business you are in, you may need a Federal license or permit.

Most businesses do NOT require a Federal license or permit. However, if you are engaged in one of the following activities, you should contact the responsible Federal agency to determine the requirements for doing business:

• Investment advising

• Drug manufacturing

• Preparation of meat products

• Broadcasting

• Ground transportation

• Selling alcohol, tobacco or firearms

B. State Licenses

At a state leve, some professions require a license or permit.  Each state varies in its requirements, however, most state require a license or permit if you engage in any of the following professions :

• Building contractors

• Banks

• Insurance carriers

• Physicians

• Appraisers

• Accountants

• Barbers

• Real estate agents

• Auctioneers

• Private investigators

• Private security guards

• Funeral directors

• Bill collectors

• Cosmetologists

C. Sales Tax Permit

If you're selling physical products, you may have to collect and sales tax. This is usually accomplished by obtaining a State Seller’s Permit or Resale Permit.

D. Business License

Most Cities or Counties require you to obtain a business license, even if you operate a home-based business. This is a license granting the company the authority to do business in that city/county.

6. Find a Location & Set up your books

Your best bet for an affordable location is to find Foreclosures!. One person's loss, another's fortune. 

Set Set up an Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying. Link a bank/credit card to Mint (FREE) and see WHERE you spend.

7Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or Workers Compensation or Unemployment Insurance (or both).

8. Obtain Business Insurance

Small Business Insurance  can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

9. Develop a Business Identity

Order business cards, letterhead and promotional materials for your business. A professionally created logo can make your business look professional and established.

10. Get the Word Out (Marketing)

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer.

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Sources:

• Internal Revenue Service

• Small Business Administration

• Prolific Marketing Consulting

• E-How

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