What You Need to Start a Business

When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for every state, the following checklist and steps have been developed to assist you in starting your business. Choose and Register A Business Name For some people business names come easily, for others finding the right one is a major challenge. I have listed the basic steps to follow in naming a business. There are multiple "rules-of-thumbs" that tend to be contradictory. Some insist that a business name should be descriptive of the business and others suggest that being unique in the best way to be remembered. Keep in mind that your business name is an important part of your marketing effort. It is a major component of how customers; perceive your business. Your business image is based on this perception. So, it is critical that it reflect the image that you want your customers to have of your business. My tendency is to go with what your inner voice (gut) says is right for you. You are the one who has to live with this business day and night for a long time to come. So choose something you feel good about. One test might be to think about the name being splashed across a major headline. How does it feel to see the name in print representing your business? If it feels good, go with it. If all else fails, there are businesses available that will help you determine the right name. If you go this route, look for a good fit for you. You want this to reflect your concept, not someone else's. Keep in mind this is one of the most important decisions you will make about your business. As part of naming your business, you may also want to design a logo for your business. If creativity is not your strong suit, there are many businesses out there that can help you. While this may seem excessive, you will never regret the time you have spent on this part of setting up your business. This is the first and most critical part of marketing your business. Do it right and your future marketing will be much easier to plan and implement. lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus lebronplus Legal Issues. Picking a name for your business requires much more than just creativity and a working knowledge of your target market. First you will need to decide which business structure you will use, since each structure has its own peculiarities. Of equal importance, is finding out whether your name or a very similar name is being used by another business, and if so, what rights they may or may not have to use the name in the area where you want to do business. Keep in mind that some businesses only file trademarks within their locality, so it is possible that the same name can be used elsewhere. Search and Registration. Trade names can be registered through the state Secretary of States offices, and for wider marketplace protection, through the US Patent and Trademark office. Businesses should first use the USPTO's online system to search all state and federal trademark registers to see if the proposed name is being used. Domain Names. For many businesses that operate on the Web, trade names are synonymous with domain names. There are many online services available to check if your proposed Domain name is available. Select a Name and Legal Structure Sole proprietorship Partnership Limited liability corporation Corporation Sole Proprietorship in general can be established with little or no formalities. However, it will generally be necessary to obtain one or more local business licenses from the cities and or counties in which you will operate, and in some cases, you might need a state license as well. If you make sales of tangible property at a retail level, you will be required to obtain a sales tax license for the collecting of sales tax. No separate tax-form filing is required. You simply report that your business financial information on standard tax forms is available for sole proprietorship. Doing business as a sole proprietor is much simpler than operating as any other kind of business legal entity. If you have no employees, you are not required to pay or withhold any employment taxes, withhold any federal or state income tax from wages, or obtain workers' compensation coverage for yourself. Partnerships allow the creation of either a general partnership in which all partners are liable for the debts of the business, or a limited partnership, in which only the general partners are liable for debts. It is generally necessary to obtain one or more local business licenses from the cities, counties, and possibly the state in which you will operate. Partnerships, as entities, are not subject to state income tax. Instead, the income or loss of the partnership, as allocated among the partners, must be reported on the personal income tax returns of each individual partner. However, there might be some local or state annual fees or tax required. A partnership agreement, for any type of partnership, should spell out in considerable detail all aspects of the partnership. It is recommended that you contact both an attorney and an accountant to discuss all the legal and financial aspects of your partnership agreement and make sure it is all in writing. Concerning corporations, a business may incorporate without an attorney, but legal advice is highly recommended. The corporate structure is usually complex and more costly to organize. Control depends on stock ownership. Persons with the largest stock ownership control the corporation. All corporations must file articles of incorporation with the business services office in the state you wish to operate in. Limited liability companies (LLC) are very attractive entities for many small businesses. While offering much of the flexibility plus the flow through tax treatment of a partnership for federal and state income tax purposes, there might be fees and permits required for city, county, and state levels. With both options, it is recommended that you contact both an attorney and an accountant to discuss all the legal and financial aspects of corporation and LLC. For someone who is just starting out, you might want to be a sole proprietor. This is the easiest and least expensive option to get started with. As your business grows and you hire employees or expand your operation, you should discuss the other options with an attorney and your accountant. Taxation All businesses must pay taxes. When you register your business, most states and the federal government will require pertinent forms for compliance. A business start date is very important because you will be required to file income taxes and collect sales tax from that day. Business Plan A well-written business plan is the story of how you are going to run your business. It is your opportunity to chart the path where you want to go. Starting a business without a plan is like going on a trip without a map or destination in mind. It might be a fun trip. then again, it might not. Running a business in not a simple jaunt. You need to map and destination already in mind if you are to stay in business. How ever, writing that map and destination for your business does not need to be a complicated process. Your business plan establishes you checkpoints and goal along with setting a timeline for accomplishing certain objectives. Knowing who the plan is written for will help in making it a better plan. The essential components of a business plan are: Executive Summary. A concise overview of the entire plan along with a history of your company Marketing Analysis. Illustrates your knowledge about the particular industry your business is in, and presents general highlights and conclusions of any marketing research data you have collected. Company Description. How all of the different elements of your business fit together. Organization and Management. Your company's organizational structure; details about the ownership of your company; profiles of your management team; and the qualifications of your board of directors. Marketing and Sales Strategies. How you are going to attract and service customers. Service or Product Line. What you are selling? Funding Request. The amount of funding you will need to start or expand your business. Financial. The critical financial statements to include in your business plan packet Appendix. Additional supporting information. Choosing and Open a Company Bank Account Once you have established your business name, formed your legal structure, and taken care of all legal tasks, you have to open a bank account for your business. One simple business checking account should be fine. As your business grows, you can discuss other options with your accountant. Many business owners do not thoroughly consider their needs when selection a bank. Although there are laws and regulations that govern the activities of banks, saving and loans, credit unions and investments firms, not all financial institutions are the same. Each institution establishes its own policies for: Types of products and services they offer Criteria for qualifying for a loan Minimum balances for accounts Interest rates Fees While one bank may specialize in home loans, or auto loans another may focus on commercial loans for businesses. Some banks may only offer basic deposit accounts while others have lock box services, sweep accounts and even online banking. That why it is important to evaluate your business needs before you select your bank. Consider some of the things your bank can help you with: Assist you with the cash management needs of your business. Offer investments products of varying maturities - overnight to long-term certificates of deposits. Offer investments of varying risk. Provide advice about qualifying for the loan that best meets your needs. Provide special loan programs for small businesses. Assist you with finding financial information on your industry Compare financial institutions in order to find the one that will serve your business's needs and will also provide support and assistance during each stage of your business. Selecting and instituting that you can work with will be especially important as your business grows. Start gathering information to help you make this important decision. Approach the decision as a long-term investment. Ask your accountant or lawyer to introduce you to a banker who they are familiar with. Check your local chamber of commerce. Look for a complementary personality - someone you can relate to and are comfortable with. Introduce yourself to the bank manager. If you are looking for a loan, ask to meet the loan officer who will be assigned to you. Find out how long they have been in their current position. Tell them about your business and the form of organization so they can tell you what special products and services or restrictions that might apply. You should not make this decision on pricing alone. But do compare interest rates on deposits accounts and basic consumer loans. Also, look carefully at the fees for services. It is a good idea to establish a relationship with a banker before you need money. The right banker will be someone that understands the needs of emerging and growing businesses. Professional Help There are many ways that someone well versed in their field can assist you with your business. An Accountant can help you with setting up you bookkeeping structure, tax planning and a payroll set-up. Attorneys can help you with your contacts, setting up your business structure and lease reviews. An Insurance Agent can help you with planning the best overall package for your type of business. Insurance You should have the proper insurance for all of your equipment and vehicles as required by law or needed. Some jurisdictions may require you to carry business liability insurance. This can be obtained for around $200.00 to $1000.00 per year. Business Counselors can help you with your business planning, loan applications, and referrals to other professionals. SCORE volunteers and Small Business Development Centers offer some counseling for small businesses.