A Quick Start Guide to Starting your Business
Perhaps you just launched your business or contemplating starting one. If you're one of these two, read on below for a broad overview of 6 steps you need to take in order to be off to a good start! Please note that this guide is specific to starting a single-member LLC but broad enough to cover most business startups.
Write a Business Plan - The first step is often the most important. Writing a business plan helps you brainstorm ideas and keep everything in perspective. Think of a business plan as a blueprint for your business. You will write about topics like what services you will provide and expenses expected to incur as well as market competition. For more information, see our blog on business plans.
Determine if You Need a License/Permit/Certification for Your Trade - Chances are you are aware of this step and it's dependent on the type of business activity you perform and what your state regulations are. Be sure to be aware of this requirement. A good place to start researching is your state governments website.
Draft a Marketing Campaign - Once you do launch your business, how will customers know about your new startup? If you already gathered interested clients, that's great! Your marketing strategy should be included in your business plan and may be different depending on your trade. Contact a marketing professional for best results.
File your LLC Paperwork and Acquire Business Insurance - This is where it becomes official. You will need to file and submit form SS-4 to the IRS and the appropriate form to the State your business will be located in. Filing services such as LegalZoom and ZenBusiness can help with this step on your behalf
Open a Business Checking Account - The purpose of having an LLC is to separate personal and business liability by segregating personal and business funds. Opening up a business bank account helps separate liability as only income and expenses from your business should only flow through your business bank account. Under no circumstances, except for taking out owner draws, should you mix personal and business funds together (i.e. both personal and business proceeds in one bank account). This negates the protection of having an LLC. Before going to a bank, be sure to bring an ID, your EIN document, state filing document, and operating agreement.
Find a Way to Track Income & Expenses - To understand how your business is performing, you will need a software to do so. Solutions such as QuickBooks Online and Xero are dominant software providers to accomplish this.