The Home Business Monkey

Starting a new business can be difficult, but it can be a lot harder if you are doing it on your own. A lot of business owners bring in partners, accountants, and even lawyers to help them through the beginning stages of business. Even if you are building your own business from the ground up, it doesn’t mean that it has to be a hard task to complete. As long as you have a clear plan of tasks you need to complete, you should easily be able to get your business off the ground.

1. The first thing you need to do is make sure you business name is available. To do this you will use your state’s website. There will be a link on the website that will search for the business name you have decided on. It will search current businesses that are registered. If the trade name isn’t available you will have to think of a new one. It can get aggravating when the name you have picked is in use, but when you are starting a new business you will want your business name to be catchy, original, and describe the kind of work you do.

2. The next thing you will need to do is decide whether you will conduct business as a corporation or a sole proprietor. A sole proprietor does business as an individual. While your taxes as a sole proprietor will be easy to file, you will pay taxes at a higher rate than a corporation. You can file your business as a corporation even if you are the sole owner and employee. Filing as a corporation will save money at tax time and it also gives your personal assets more protection against anything the company may be liable for. This can be confusing to those starting a new business and there are benefits to filing either way and you can read more about it on the Small Business Administration website.

3. Once you have decided which way you would like to conduct business, it’s time to register your business. You will do this directly on your state’s website. It will allow you to register your trade name and select the way you would like to conduct your business. This is a necessary process when starting a new business, although it will cost a fee it’s usually minimal. The fees and filing process varies state to state but registering online is a lot cheaper than having an accountant file the paperwork. After you have registered your business, the paperwork with your employer identification number will be mailed to you.

4. Once you receive your EIN, you can open your business checking account. It’s always smarter to keep your business and personal money. You will need to keep track of all finances whether the money is coming or going. Things like receipts should be kept for tax purposes.

5. The last thing you should do before you begin working is obtain business insurance. Just like you would protect your personal assets, you should protect your business ones as well.

Once you have everything set up legally, your assets both personal and business are secure, and you are organized it’s time to start working!