Five things you need to know about starting business

Start your own business! This might sound impossible, but it isn’t. Even if you already have a part-time job or a source of income on the side, starting any kind of business can still be very exciting and fulfilling, especially when you’re creating something new and fresh. That said, things like taxes, finances, and everything else that goes into starting a business can be overwhelming, and they might even seem too complicated for some people. Luckily, there’s actually a lot less to getting started than you think. Here are five easy tips to set things in motion so you can enjoy this amazing world we live in while being sure about things like business licenses and insurance.

1. Understand How Small Businesses Are Formed

Before you get started with anything, be sure to know what type of business you want to be, how soon you want to open, and whether you’ll have any trouble managing the team already in place. You’ll also need to decide on an idea for why you want this business up and running, which will determine whether you need help getting it off the ground. There are several different types of businesses, each with their own strengths and potential pitfalls. As long as you stay informed and make good decisions, you should be able to find a way to run a successful small business.

2. Get The Necessary Permits & Licensing In Order

The first step in opening a business is finding out where all of the necessary paperwork comes from—and who needs it. One of the most important documents a person needs to have open their doors is either a state-issued sales tax license, local business license, occupational licenses, state-issued permits, building permit, registration for general business purposes (like retail store), or various other licenses as well. Depending on what sorts of businesses you want to start, you may want more or fewer licenses to go along with having a storefront, making online orders, conducting business through email, taking advantage of certain safety precautions, etc. Many places offer these types of “passport” items free of charge, and they often include access to information about your location and specific licensing requirements. Check out your area’s website or call for licensing services before purchasing them all—that makes sure they know how much you require and what exactly your company will look like. Be prepared to pay fees for some licenses while filling out applications can be quite time-consuming, and depending on what sort of operation you want to do, you may not be able to cover them at all.

3. Choose A Legal Name For Your Company

Once you’ve decided on a name (or two), it’s time to pick one that’s easy enough to spell and pronounce without using silly or confusing words like “the” or “the” instead of “the business.” Remember that no matter how attractive a business name sounds, many people aren’t going to use it in order not to sound stupid. If possible, try coming up with something clever and original and choose a nickname for your company, such as Mr. Cool or Mrs. Smartie Pants to keep its identity and personality under wraps. Once you’ve made up your mind, visit your town’s registrar to begin completing business name-check forms. Then, submit the form and wait for approval. Afterward, send the completed application to that same office so it can be processed and then submitted for registration with the relevant authority. It will take anywhere from 30 minutes to a few hours, depending on how quickly the offices process them.

4. Plan Out Your Finances So You Have Time (& Resources) At Hand When Reaching Clients And Investors

Setting aside a little bit of cash and a reasonable amount of investments is always smart. Most states require that when starting an S corporation, you must have at least $150,000 in cash, real estate, and personal property; plus, some other assets, such as equipment and inventory. Before applying for an S corporation, you’ll be given a list of necessities, but once you’ve been approved, you can build up whatever assets you wish with your initial startup capital. If you’re planning on selling the company to another individual or private owner, be aware that you won’t receive any share of profit in exchange for the stock you bought. Also, note that many states require shareholders to become LLCs for the sake of taxes.

5. Find Legal Help With Certain Issues

While you’re setting up shop, make sure you consult with the appropriate legal help as needed. It could range from simple matters like registering for Taxes, drafting contracts, resolving conflicts with employees or other parties, and more serious issues like accounting for profits, determining liability if a customer gets sued, and handling patent infringement lawsuits. Make sure to hire someone that’s familiar with the law and is properly trained in order to handle these situations professionally. You might end up spending more time doing research and consultation than actually opening the doors of your dream enterprise. But hey, don’t worry. Doing your due diligence and talking to someone prior to actually putting in the work will save you countless headaches down the line. Plus, the knowledge is worth the cost of the consultant. Who knows—maybe even those who get hurt by yours will tell others about your experience when you need it!