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Need Help Understanding How To Start a Small Business From The Ground Up. ( Legally )?
Hello All, Im in need of a little information. if someone wanted to start up a legitimate business, what are the step's they need to take to start up. Not to mention successful. Please use step by step detail.
EX: Whats the first thing that needs to be done. then the second, an third an so on.
In the US, starting a business involves planning, making key financial decisions and completing a series of legal activities
Step 1: Writing a Business Plan
This written guide will help you map out how you will start and run your business successfully. Go to sba.gov/smallbusinessplanner/plan/w... , www.bplans.com/ or www.score.org/template_gallery.html... for instructions on how to write a business plan and sample business plans.
Step 2: Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business. Go to www.score.org/mentors and enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a volunteer SCORE mentor. They will guide you through the process and you can meet with them as many times as you need.
Step 3: Choose a Business Location
Get advice from a commercial real estate agent and a SCORE mentor on how to select a customer-friendly location and comply with zoning laws.
Step 4: Finance Your Business
Find government backed loans, venture capital and research grants to help you get started. Any bank will require a business plan that shows that you can pay back the loan. You should have a credit score of at least 700. You will personally have to put up 30% of the funds as no bank is going to assume all of the risk. If you cannot get a loan, look at peer to peer lending sites such as www.kickstarter.com/ and www.prosper.com/
Step 5: Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative. If you decide to become an LLC, you can do it yourself by going to your state's website and then to the Secretary of the State section. There you will find a downloadable form. Fill it out and mail it in, together with the filing fee and in about a week, you will be an LLC.
Step 6: Register a Business Name ("Doing Business As")
Register your business name with your state government. Go to your state's website and then to the Secretary of the State section.
Step 7: Get a Tax Identification Number
Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency. www.irs.gov/businesses/small/articl...
Step 8: Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers' compensation, unemployment and disability insurance.
Step 9: Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your business. Your local Chamber of Commerce and SCORE mentor can help.
Step 10: Understand Employer Responsibilities
Learn the legal steps you need to take to hire employees. www.irs.gov/businesses/small/articl...
Step 11: Understand your environmental, health and safety obligations.
Ensure that your business meets EHS (environmental, health and safety) regulations.
Step one: Make sure you have enough cash to start the business, pay all licenses, taxes and expenses, buy inventory and fixtures if that applies, and support yourself for a year without income before you turn a profit. Usually that's going to be around $50K and up.
Without that, step two doesn't matter.
The first guy gave you a great step-by-step process. The only other thing I would add is that, depending on the nature of the business, which you have not specified, there may be additional requirements. Also, I don't think he included getting your business license which would also be important.by Rachel - 1 year ago