If you are ambitious, you generally do not want to spend too much time on finding out how to start a company that supports your core interests. For most entrepreneurs, the time is to act now and not later.
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That is why you need to read the following info and speak to my legal team. Book a call to speak to us here: https://mollaeilaw.com/start. We will give you the direction you need to begin your business and experience ongoing success.
How to Start a Business: Following the Steps
If you want to know how to start a business successfully, take specific steps. Check off these steps as you progress. Doing so will make things less complex. It will also help you when consulting with an attorney.
Attorneys know what steps to take to experience successful outcomes. That is why you cannot downplay the need for legal counsel. Again, get the legal help you need. Contact me online. Email firstname.lastname@example.org today.
Reviewing the Steps on How to Start a Business Now
Let’s look at the steps on how to start a business, as you will need to follow this basic sequence to get your enterprise off the ground.
1. Perform Market Research
Before you jump in and consider a business set-up, you need to learn more about consumer behavior and the economic trends that support your business idea. You need to understand your customer base, so you can reduce risk.
The Main Questions You Need to Ask
Answer the following questions to get a better idea about your market:
- What is the demand for your product or service?
- What is the market size, or how many people are interested in what you will be providing?
- What are the economic indicators, or the employment and income range of your target audience?
- How far can your business reach? In other words, where do your customers live?
- What is the market saturation? How many options are already available to customers?
- Pricing – What do your potential customers pay for what the competition offers?
Obtaining Source Material
You can go to several sources online for your information. For example, for employment information, refer to the U.S. Bureau of Labor Statistics. You can also refer to the Consumer Price Index or CPI at the same site for further details about economic indicators.
If you are not sure where to look, check on the Small Business Administration (SBA) website to aid you in your search. You can also use questionnaires and focus groups when performing the research.
2. Create a Business Plan
After you have researched your business idea and the market, you will need to draft a business plan. Most business plans are presented as lean start-up plans or convey a traditional outline.
Traditional business plans provide detail in each section and require a good deal more input. Some may comprise dozens of pages.
A lean start-up business plan uses a standard style format. However, as the name suggests, only the key elements are addressed. These condensed plans take about an hour to complete and provide a basic overview in one page.
3. Calculate the Start-up Expenses and Decide on How to Fund the Business
Once you have calculated what you will need, you can fund your business in one or more ways. You can fund it yourself, acquire venture capital, or check into crowdfunding. You can also take out a small business loan to obtain start-up money.
4.Select an Entity
When you are deciding about funding, you should talk with your attorney about choosing an entity for your small business. Use your lawyer’s expertise and help to set you up as a limited liability company (LLC), a subchapter S corporation or a DBA company.
All these entities are common forms used for establishing business ventures.
You may also be interested in establishing a C corporation or a partnership. Start-ups that choose incorporation find that they can more easily raise venture capital with this designation.
If obtaining venture capital is important to you, you may want to set yourself up as a corporation, either as a traditional C corporation or as a subchapter S. If you choose subchapter S status, you can avoid double taxation, enjoy pass-through taxation, and reduce your risk of getting sued.
5. Contact Me for Assistance
To help you choose the right entity for your business, give my team and me a call. It’s easy to do. Book a call to speak to us here: https://mollaeilaw.com/start. Establish an entity to show that you mean business and that you are committed to the process.
6. Decide on a Location
What you choose for a location can affect what you spend in start-up costs. That is because costs can vary substantially in relation to a state’s minimum wage, property values, salaries, rental rates, utilities, and business insurance rates.
What you pay in fees and licenses can also differ state by state.
7. Open Your Business Bank Account
When opening a business bank account, you need to consider a few things before making a choice. When choosing a business savings or checking account, review the following:
- Introductory offers
- The interest paid for the accounts
- The interest charged on lines of credit
- Fees charged for early termination
- Fees for minimum balances
Do You Need to Open a Merchant Services Account?
If you wish to open a merchant services account, you should carefully review the following:
- The percentage charged for transaction processing
- The amount charged for each credit card purchase
- AVS, or address verification costs
- ACH bank daily batch fees for settling daily credit card transactions
- Monthly minimum fee charge if your business cannot meet the minimum in transactions
You may want to choose a payment processing company instead of a bank for processing your customer transactions.
8. Set Up Your Bookkeeping System
Setting up a business bank account will enable you to establish your bookkeeping for recording income and costs. Check out the various software programs used for this purpose with a reputable accountant. Work with the accountant to make sure you always comply with the tax code and pay your employees on time.
9. Establish Your Company’s Policies
You will need the help of an attorney for establishing the guidelines and policies for your company. Again, you can count on my legal help for setting up your company’s policies. Email email@example.com to set up a consultation.
10. Establish Compliance
You will need to pay workers compensation taxes each month if you have employees. You will also need to pay for certain licenses and permits. To know more about these start-up costs, you will need to consult with both an accountant and attorney.
Forming an LLC
To get the most mileage out of your business start-up, you may be interested in establishing an LLC. Many small business operators choose this entity to start their business faster and more economically. Read the following basic overview to get a basic understanding about how to proceed.
How to Start a Business Fast by Establishing an LLC
Most entrepreneurs today choose to establish themselves as limited liability companies. If you want know how to start a business fast, this is the way to do it.
LLCs are attractive as they offer the owner pass-through taxation. Therefore, you don’t pay any taxes on the business, only on what you earn on your personal tax form.
Also, any claimant who files a lawsuit against your business cannot sue you for your personal assets. An LLC fully protects you from this type of legal move.
A Basic Six-Step Process
Basically, setting up an LLC is a clear-cut process. You will need to do the following:
- Choose the state in which to base your LLC – If you will be working primarily in a specific state, it is best to form an LLC where you will have a business presence.
- Choose a name for you LLC and make sure it has not been taken. The Secretary of State’s office where you form your LLC lists the names of state LLCs. You need to check the database first before an LLC name is chosen.
- Select a registered agent to accept legal documents for your LLC. This person or entity must be located in your state.
- File your LLC with the state and pay the designated filing fees.
- Create an operating agreement for your LLC to avoid any disputes.
- Obtain an Employer Identification Number (EIN) for your business so you can open a business bank account and apply for business credit.
It is important to fund your business and pay expenses with your business bank account. Don’t use your personal bank accounts for business transactions. Doing so will increase your legal and financial risk.
What To Do Next
If you have read the above information on how to start a company fast, you no doubt may find some of the details a bit overwhelming. However, have no fear. You can get the legal advice you need to begin your business and prosper.
Why not contact me today? Email firstname.lastname@example.org with your questions. I can be reached, for your convenience 24/7.
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