There are 3 more boring but necessary steps you need to take to start a business. It takes a lot more than just a good idea and some passion to get a business going. Here are some things you need to do on a very basic level to get started.
Business Registration and Incorporation
You need to register your business and your business name with your local government agency. You also need a business license to be allowed to operate. If you are going after Internet business opportunities and starting out working out of your home, you still need a business license.
Then you will need to decide how you will incorporate. Will your business be a sole proprietorship, incorporation, LLC, or what? All those different entities carries with it a variety of tax and legal implications. It’s important to look it up.
If you plan on just being a sole proprietor to keep is simple, you should look at getting an LLC. It’s pretty much just as simple and it covers you legally. If you get sued by a client, vendor or business partner, your business might have to pay out, but your personal finances are covered.
You should also consider which state to incorporate in. Some states have more taxes than others. Good states to incorporate in are places like Delaware and Oregon. The great thing is that you don’t ever have to go there. You can do all of the paperwork online.
Insurance
You also need to think about insurance. Even if you don’t have a brick and mortar building, commercial vehicles or a staff, you should still get a basic cheap commercial insurance policy that covers liabilities. That basically means you should get insurance in case you get sued.
Accounting
You need to figure out how you will do the accounting. If you don’t have a background in accounting, you need to find someone who does. You may need to hire a contract bookkeeper at some point. Keeping good books is necessary and important.
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