Opening a Business

In starting a business you will need ten basic plans or steps. Step one will be to write a business plan. You know, or you should know, that you need to write a business plan weather you will need a business loan or not. The plan that you write does not have to be encyclopedic nor does it have to have all of the answers in it. A well written or well prepared plan that is revisited often will help you steer your business all along its growth period. Think of your plan as a guide or a plan and not just a onetime document.

You should break your plan down into smaller plans, one for marketing, another for pricing, another for day to day operations, etc. The next step in starting your business should be getting help and training. Starting a business can be harder than expected. There are several online and in person that can help you and walk you through some of the steps on getting you started. The third step you would need to take would be to choose your business location. The place in which you choose to put your business may be the single most important decision that you make.

Many factors come into play when choosing where to put your business. Some of these factors may include, proximity to suppliers, competition, transportation access, zoning regulations, etc. The step to take next would be to understand your financing options. You may want to bootstrap, fall back on savings, or even may look at keeping your day to day fulltime job. You may even look at an external source of money. Step five would be to decide on a business structure. You will need to choose on whether you will have a partner or not, incorporating or not, or even LLC.

How you structure your business can reduce personal liability for losses and debts to the business. If you do things the “right” way you may even be able to receive tax benefits. The next step should be to register your business name. Registering a “Doing Business As” or “trade name” is something that you only need to do if the name of your business is not your personal name, the name of your partners, or the name of your LLC or corporation. Step seven should be to get a tax ID. Not every business needs to have a tax ID from the IRS.

You will only need a tax ID if you have employees, run a business partnership, a corporation, or meet certain IRS criteria. You will need to start paying estimated taxes to the IRS. In these last three steps you will need to register with tax authorities, apply for permits and licenses, and hire your employees. Employment taxes, sales taxes, and state income taxes are handled by the state. Businesses need a license or a permit to operate. Even businesses ran out of homes have to have these. Finally in the final step you will hire employees. Cites– http://www. sba. gov/community/blogs/starting-business-10-steps-every-entrepreneur-needs-know

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