While starting a business in the US may not seem big to anyone else but the entrepreneur themself, it is a process that’s super complicated and even discouraging. There are so many things to take into account, and even more, things can go wrong that can stop you right in your tracks in becoming the next successful business!
That said, while some of your businesses are bound to fail, it is a learning experience that helps you succeed later in the future. Regardless, there are some things you can do to increase your chances of success, and it all starts with fulfilling the registration requirements to start the business:
#1 Know The Right Business Structure
In the United States, you’re free to choose your business structure, and it’s important to know what you can expect from each. Understanding the liabilities, tax obligations, and expenses that come with each type is essential to building a successful business.
#2 Pick A Name For Your Business
Before picking a name for your business, it is important to check and make sure you are not using the same name as a trademarked name. If there is a possibility of someone else using the same name, you should consider using a different name.
#3 Understand How Your Business Expenses Are Taxed
Before you start spending money on your business, it is important you understand how your business expenses are taxed. Some expenses may be able to be deducted from your income when you submit your taxes each year, or they may be able to be written off as all business expenses.
#4 Register Your Business With The State
In the State where you are starting your business, you will need to register it with the Secretary of State. This is required in order to legally start a business in the state.
#5 Register For An Employer Identification Number
After registering your business, you will need to obtain an Employer Identification Number (EIN). This is a number that is needed for opening business bank accounts, applying for any business tax credits, and more.
#6 Find A Suitable Location
Finding the perfect location for your business is an important part of the process. Not only do you need a location that is convenient for customers, but it also has to be affordable for you. There are many ways you can find a location. Some examples include searching online, using a brokerage, using a commercial real estate firm, or even using a business broker.
#7 Set Up A Business Bank Account
After you have picked your location, you will need to set up a business bank account. A business bank account is needed for all business expenses. Also, it makes sure your business transactions don’t get mixed up with your personal bank, which can make tax time and other financial activities much more troublesome.
Conclusion
Starting a business is not as easy as it may seem. It is a process that takes time, effort, and money. This is why it is so important to consider all of the necessary steps to starting a business. From choosing the right business structure to picking the perfect location, there are many things that can go wrong, but you can successfully start your business if you follow these steps carefully.
New Business Centre assists new businesses by helping them navigate through the complex world of business to ensure success. If you’re planning to start a small business, reach out to us today for help!
