Meta: You’ve determined to make the leap and begin your dream business. You’ve determined what your new business enterprise goes to do and feature formulated your normal strategy.

Now it’s time to complete a checklist of necessary tasks to set up and structure your business:

Name your business

You need to have a completely unique call that clients will remember. Your enterprise does now no longer ought to proportion a call together along with your product and maybe an umbrella call in your company. This may be beneficial if you extend to different merchandise or services, so that you won’t rename your company. 

For example, you would possibly promote a completely unique product known as Dog Cleansing Wash. Let’s say down the street you begin to promote a Cat Cleansing Wash, so it’d behoove you to call your enterprise Pet Soaps.

To provide you with ideas, brainstorm till you’ve got got a listing of 5 to ten enterprise names. Then, seek online to look if there’s an enterprise or internet site that already makes use of that name. Check together along with your Secretary of State to look if there’s an enterprise already the usage of your selected name. For maximum states, you may do that online.

If, after your research, you continue to have numerous ability names, check them out with buddies and your own circle of relatives to peer which one they just like the best. Once you’ve got determined on a call to your enterprise and get the important trademark protection, you’re prepared for the subsequent step.

 Buy a domain name, set up email addresses and a business phone

You’ll need to register a domain for your website once you’ve decided on a business name. You’ll want a domain name that is both unique and memorable and the shorter the better. You should pick a shortened domain name if your company name is long. If your company’s name is Tony’s Lawn Care Service, for example, you might prefer “tonyslawn.com” to “tonyslawncareservice.com.”

Consider using.com over other domain extensions like. Biz, co, and.info because it is more professional. Of course, you’ll need to perform some research to ensure that the domain name you want is available. Once you’ve confirmed that it is, you can choose from a variety of domain registrars. In addition to selling domain names, some registrars also offer email accounts and website builders. Squarespace, Wix, and Weebly are the most popular domain registrars/hosting/website builder firms.

After you’ve purchased your domain name, you should purchase email addresses to go with it. When you first start off, We recommend purchasing only one domain mailbox, either [email protected] or [email protected]. Having a business phone number is also essential. While using your personal phone number is an option, having a separate business line is preferable. Google Voice is a free service that gives you a second phone number that Google will assign to your phone. Your business phone number will be this second number. To call clients, partners, and vendors, download the Google Voice app to your smartphone.

Incorporate your business

To safeguard your personal assets from business debts and responsibilities, you must create a legal corporation. Creating a legal corporation also adds credibility and validity to your business. Limited liability companies (LLCs), S corporations, and C corporations are common legal entity alternatives.

Reduced paperwork, less stringent reporting, and a more flexible management structure are all advantages of an LLC. Additionally, because LLCs are flow-through organizations (company income/loss is passed through to the owner’s tax return each year), tax time is simplified significantly. Because all money flows straight via your tax return, LLCs do not need you to take a salary. This is how you get paid by the company.

Forming a corporation makes more sense if you expect to take outside funding. Outside investors can invest in your company more easily through corporations. You have two alternatives if you decide to go this route: an S corporation or a C corporation.

S companies are flow-through entities, making them more similar to LLCs. The number of shareholders (individuals who own stock in a corporation) in an S corporation is limited to 100, and shareholders must be citizens or resident aliens of the United States.

You can have as many shareholders as you want in a C corporation, and there are no citizenship limits. C corporations, on the other hand, are not flow-through organizations, so the company must pay corporate income tax. You should pay yourself a wage throughout the year to prevent double taxation at the end of the year.

After you’ve decided on a legal company, you may either form it yourself using your Secretary of State’s website or utilize a service like MyCorporation, which charges a small fee.

Remember that formation fees differ by state. Some believe that regardless of where you live, you should register your LLC or corporation in Nevada or Delaware since they offer better business-friendly legislation and tax treatment. However, I believe that you should incorporate your business in the state where you live. You can avoid paying a registered agent in another state to receive and forward your mail to you by doing so. 

Online application for an Employer Identification Number (EIN)

Apply for an EIN from the IRS online after forming an LLC or corporation. The EIN is required for filing taxes, opening a company bank account, and applying for licensing. The EIN will appear on the confirmation page immediately after you apply online.

Obtain all necessary licenses and permits. What licenses do you require to run your business? Depending on the type of business you start, federal, state, county, and city licenses may be necessary. Determine which permits and licenses you’ll require. The SBA is a good place to start at the federal level. Contact your state’s company licencing department for more information. Check with your city’s business affairs office for information on the local level.

As an example, imagine you’re starting a taco truck. A food truck operation license is almost certainly required. Perhaps you’re starting a pet grooming business. You may need an animal care permit in such an instance.

Open a bank account for your business

Go to a bank branch and create a business checking account once you have your LLC/corporation filing receipt and EIN. I would recommend using the bank where you have your personal account for ease. In this manner, your web portal may accommodate both your personal and commercial accounts. Furthermore, many local banks provide discounts and reduced costs for having numerous account partnerships with them, and you’ll be able to access fast account transfers as well as online payroll services for contractors and employees all in one spot.

You’re one step closer to creating your ideal company now that your firm is structured!

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