The easiest type of business to start is a sole proprietorship.Unlike corporations or limited liability companies, you don't have to file with your state.Pick a business name and register it.Obtain licenses and permits in order to operate.You should open a bank account and draft a business plan before you start your business.
Step 1: Pick a memorable name.
You can use your legal name to operate your business.If she is a photographer, she can use the name "Andrea Smith", but you might find it useful to come up with a different name.If Smith specializes in wedding photography, her company would be called "Wedding Wishes".Think of words that are associated with your business.A massage is relaxing and therapeutic.A good business name would be Touch Therapy.
Step 2: You should check that your name is available.
If someone else in your state is using the same business name, you can't use it.The Secretary of State's website has a database of business names in your state.Check to see if the name has been patented.The United States Patent and Trademark Office has a database of names.If you want to trademark your business name, you need to file with the United States Patent and Trademark Office.
Step 3: There is a file for a fake business name.
Any name that isn't your legal name is a "doing business as"You need to register your DBA in your state.Depending on where you live, the process will be different.In some places, you will need to give public notice by publishing your name in the newspaper.
Step 4: The URL is available.
The URL should be the same as the business name.Check the register.com website to see if it has been taken.If you are not prepared to create a website immediately, reserve the name.
Step 5: You need to register in your city or county.
If you have opened a business, you should report it to your local government.You will probably have to pay a fee to complete the paperwork.
Step 6: Required permits or licenses can be obtained.
If you need other permits or licenses, you can check with your nearest Small Business Development Center.You can find your nearest SBDC by going to www.sba.gov/tools/local-assistance/sbdc.Click on the state you are in.If you prepare food as part of your business, you may need a health department permit.Businesses need federal licenses.If you are involved in the transportation or importation of animals, you may need a license from the U.S. Department of Agriculture.You can get help from the SBDC.
Step 7: Register with your state.
If you have employees or collect sales tax, you will need to register.Complete required paperwork by contacting your state's Department of Revenue or equivalent office.
Step 8: Check the area.
It is legal to work out of your home.You may need a permit from your local board.Go to the office and ask.
Step 9: Obtain an employer identification number.
If you want to hire employees or set up a retirement plan, you will need this number.You can use your social security number if you don't.Visit www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-number-ein-online to apply for your EIN.
Step 10: Business bank accounts are open.
At almost any bank, you can open a business checking or savings account.Take your tax ID number, DBA certificate, and a copy of any business licenses.Keep your personal and business finances separate.If you want to open your business accounts at a different bank, you should use the one you use for your personal finances.
Step 11: Get insurance.
You are the sole proprietor of the business.If you owe money or hurt someone, you can be held personally responsible.You should get insurance to protect yourself.If you use your car for business, make sure your insurance covers it.If people come to your home, you should have property and liability insurance.Business injuries may not be covered by your homeowner's policy.It's possible that you have other insurance specific to your profession.Writers are able to get media liability insurance.
Step 12: A business plan should be written.
A business plan is a plan of where the business will be in the future.It is helpful to have a business plan.If you ever want a business loan, the lender will want to see the plan.The following should be included in a thorough business plan.The purpose is identified in this section.You could be dedicated to bringing massage therapy to rural Wisconsin.Give an overview of your products and services..Tell us about your industry's size and health, as well as any trends.Identifying your target market is important.A typical consumer profile should include location, age, gender, income, and education.There is a possibility that this is not the case.Do you know which businesses you will be competing with?Explain their weaknesses and strengths.There is a possibility that this is not the case.You should go into more detail about your products.Make a list of any problems you need to address.Discuss the costs of providing your service and build a pricing strategy around those costs as part of your marketing plan.Discuss your promotion efforts, which can include paid advertising and social media..identify what resources you need to run your business and list who will manage the business..Estimate your income, cash flows, and balance sheet for the next two to four years by creating current financial statements.If you need financing, you should calculate the amount as well as the type.
Step 13: Professional help is a good idea.
Professional assistance helps small businesses.You should start looking for experienced professionals early.Any legal questions you have can be answered by a business lawyer.A lawyer can be helpful if you need to negotiate a contract.The accountant.An accountant can help at tax time, but they can also help you draft your business plan and offer advice about when it's time to transition your sole proprietor to an LLC or other form.A bookkeeper.A person records your business transactions.If your business grows large enough that you need to hire someone, you can use software at first.
Step 14: It's necessary to file taxes.
You will have tax obligations as a sole proprietor.You may have to file and pay any of the following taxes.