Starting a New Business – Review our Simple Step-by-Step Guide
Starting a new business – review our simple step-by-step guide.
Thinking about forming a corporation or LLC? If you talk to any entrepreneur or small business owner you’ll quickly learn that starting a business requires a lot of research and planning. Having a great idea is certainly important but taking the time to properly structure and form your business will save you headaches (and unforeseen expenses) down the road.
Starting a new business – review our simple step-by-step guide:
FIRST STEPS –
Research your competition –
– Do a quick search for existing companies to see if others are offering the same service or product already.
– Learn what these other companies are already doing. This can help you figure out how you can do it better.
– When you can deliver what other companies are not (or deliver the same thing, only faster and/or at a lesser cost), you’ve got a leg up on your competition from the start.
Write a business plan – Once you have your idea solidified and you are ready to make your vision a reality, ask yourself a few important questions:
– What is the purpose of your business?
– Who are you targeting / selling to?
– What are your specific end result goals?
– How will you be financing your startup costs?
These questions can be answered in a well-written business plan. If you are unsure of where to begin there are many resources available with templates to work from. Consulting with your accountant or financial advisor is always recommended.
NEXT STEPS –
Check business name availability –
– Choose a first and second choice of name for your business. – Focus on one that makes it clear what your business offers.
– Think about how to make your company stand out.
– Be sure to check its availability before actually starting to use the name. You may also develop a “DBA” – which stands for Doing Business As. This serves as your “public” name that is separate from the corporate name.
Decide where to incorporate your business – You may choose the state that you are located in, or one of the popular states such as Delaware. Around half of all U.S. corporations are incorporated in Delaware. Many seek out this state for its amenable business tax climate.
Determine your corporate structure –
– Decide whether you will form a corporation or an LLC.
– Choose who will be the major directors and management of your corporation.
Choose who will act as the registered agent – The registered agent provides the official address within the state of incorporation. They receive state mail as well as Service of Process, on behalf of the company. Your business will need to name a registered agent to incorporate. They may be changed at any time.
Incorporate your business – Have the Certificate of Incorporation/Articles of Incorporation prepared and filed with the state you choose to incorporate.
Federal Employer Identification Number (EIN) – The EIN is required for opening the company bank account and for federal tax filing, among other things. Wait until your corporation’s name has been approved, to apply for this number.
File local regulatory obligations – These include state or city business licenses and permits and zoning laws.
Establish a corporate bank account – You will need your filed Certificate of Incorporation and EIN number.
Secure business insurance – Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits are a part of doing business. More information on types of insurance recommended by the SBA can be found here. – https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
Develop corporate bylaws, a shareholder agreement and a minute book for organization meetings – CorpCo provides the Corporate Record Book as part of our Standard Incorporation Package.
Still have questions?
An accountant or attorney is always your best resource for advice and to make recommendations for your business. Contact CorpCo for a referral or with any questions about the incorporation process itself. We are here to help!