Maybe you were better at art classes than math in college; and maybe you didn’t get straight A’s in accounting or statistics, but you know you have an idea for a successful business venture. The list of things to do to start a business seems never-ending, the jargon is confusing, and all you want to do is start up and sell your product. Recognizing that not all business people are savvy in all aspects of business operations, companies offer their services to help fledging operations organize. One option is incorporating online. Although the levels of involvement vary, most companies that offer these services will work with you and perform the start-up steps. Below are a list of things that you should make sure are done either by your incorporating online service or you.
- Incorporate your business or form an LLC with the state. If you register your business as a corporation or an LLC, the owner’s personal assets are protected from the debts or liabilities of the business. There are tax advantages also for corporations and LLCs.
- You will need to write up a business plan. If all the terms and writing are confusing, consult a lawyer. If you’re strapped for cash, rent or buy a book from your local library or bookstore. Business plans provide direction and define the who, what, when, where and how of your business. If you want to apply for a loan or seek money from venture capitalists, you will need to be able to present a thorough business plan that details your goals, expected sources of competition, mode of operation, and funding.
- For tax purposes, you will need to obtain a federal tax identification number, or employer identification number, from the IRS. The IRS uses this number for federal taxation purposes and for tracking employees with your company.
- Some states also require you to file for a separate state tax identification number.
- You will need a bank account for the corporation or LLC. The finances of the owners and business officers have to be kept separate from the finances of the business. To open a business account, banks usually require information about the company; some banks also require a letter from the company authorizing the opening of a bank account.
- If you don’t have enough money to finance the business, you will need to apply for a business loan. If it is a small business, try the Small Business Administration loan program.
- Investigate insurance requirements. There are numerous types of insurance you may need: unemployment, health, liability and so on. Consult an insurance agent.
- You also have obligations for the following: federal tax, state and local tax, sales and use tax, self-employment tax, OSHA requirements, and workers compensation.
This is not a comprehensive list of everything that will need to be covered during the incorporating online process. For instance, depending on the particular industry you want to get into, there may be more or fewer federal guidelines. Business Filings (www.bizfilings.com) offers incorporating online services and can provide as much or as little assistance as you need.
By Virginia Zignego