Not every business idea is full proof, and there is also a common misconception that starting a business is too much of a hassle. But, contrary to popular beliefs, starting a business is not too much a hassle; people are just unsure whether or not their ideas are perfect.
After some research, it turns out that starting a business is quite easy. And that’s why we’ve decided to share it with you.
1. Come Up With a Name
People waste endless hours coming up with a company name that will be perfect for branding. But instead of doing this, did you know that your business can operate under a different name than your company? All you need to do is just come up with a simple name that will get the administrative ball rolling. To do this, you would need to fill up a “doing business as” form, which takes no more than a few minutes.
2. Get your EIN
An EIN (Employee Identification Number) is the federal tax number used to identify your business. However, an EIN isn’t required if you don’t have employees and don’t plan to form partnerships. But, even if you don’t need it, make sure to get it as it is free, takes only a few minutes, and it helps you reduce the chance of identity theft since you won’t need to use your social security number.
3. Register Your Trade Name
This is very straightforward and gets approved right on the spot. A trade name is used if you don’t want to operate under your full name.
4. Get a Business License
According to Your Company Formations, a platform that helps businesses register easily, a business license is a piece of documentation that no business can operate without. The form takes only a few minutes to fill out, but you would need your social security number or EIN to identify your business.
5. Ask About Permits
There are lots of business-based permits that each locality issues. However, each locality has different requirements for these permits, so your best option is to go directly there and talk with the men in charge.
6. Certification of Resale
This documentation is also called a seller’s permit and it allows you to collect state sales tax on sold products. This is only needed in the case of your business selling products. All the necessary information regarding it can be obtained on the state department of taxation’s website. You can fill up any forms online, or you can visit each locality’s offices instead.
7. Get a Business Bank Account
The biggest mistake that people do is use their personal accounts for business purposes. This is the easiest way for the IRS to screw you up, big time. To avoid this, make sure you get a bank account for your business. Also, have in mind that this way, it will be a lot easier to get business loans if needed. You can do this by filling up a form using your business name and EIN. The procedure is also quite straightforward and it requires you to pick a bank or credit union that works best for you. Beware as this bank account should be used only for business purposes.