Starting a new business can seem daunting to those of us who have never done it before. Now that so many businesses are web based (and so many business processes have moved to being on the Internet only) it’s important to know what steps you need to take to set up a new business. Doing so incorrectly can cause you trouble when it comes to copyrights, or especially when tax time rolls around.
While you can enlist the help of a professional to start your business, it’s become pretty easy to do everything yourself. Of course, the choice to DIY or use professional help should also depend on the type of business you are planning to start.
Here are a few of the first steps to take when considering starting your own business:
- Decide what kind of business entity you would like to be. You can form your company as an LLC (Limited Liability Company), a corporation, a non-profit, a partnership, or a sole proprietorship, depending on the needs of the business. For a company that intends to profit and has more than one person involved, becoming an LLC or corporation are the most common options.
- Become an official company. Once you’ve decided what kind of company you are forming, you then have to file the appropriate forms with your state. You’ll also likely need to obtain a tax ID. You can research and fill these forms out yourself, or you can pay a third party company like LegalZoom or RocketLawyer to do it for you.
- Decide if you will have employees. If you decide to employ people other than yourself and anyone who is considered a business partner, make sure that you carefully review employment law. You want to be cautious with your hiring practices and payment options. If you are going to be a small business, you may want to consider hiring independent contractors who use a W-9 form for tax purposes rather than a W-4. You’ll also want to make sure to have a performance management protocol in place – the worst thing to do is to have employees that are just sitting around and costing you money.
- Decide if you want professional help with taxes or money. Using an accountant can be pricey but it can also be worthwhile. This is also true of tax professionals and business consultants. Consider whether paying for professional help will enhance your ability to grow your business.
- Choose a domain name and build a great website. This is your A+, number one priority once your business is established! You want to get the domain name that is as close to your business name as possible. While there are many names that have been taken already, there are tons that are still available. Make yours as simple as possible so that people can find you quickly. Having a professional, cohesive website is also a huge step in the direction of success.
