It can be exciting and overwhelming to start a new business. There are, however, many things that can go wrong in setting up a business. You may skip some critical steps leading to unexpected delays or unnecessary costs.
In short, it pays to be prepared by having a handy checklist for business formation and registration. To simplify things for you, we are sharing a business startup checklist below.
Take a look at it.
1. Assess Market Demand
You might have a brilliant business idea, but it won’t take off unless there’s market demand. It’s a smart move to assess if the products/services you intend to sell have a ready market.
In addition, you should also identify your top competitors and the kind of products they are offering.
After that, you need to create an elaborate plan outlining your business description, organizational structure, products and services, financial projections, and expansion plans. The document will help you with fundraising as well as business registration.
2. Name and Register the Business
The next step is to name your business in such a way that it sticks in your audience’s memory and creates the right impression. Your business name should also comply with state rules and copyright laws. Try to come up with a name that’s unique but not hard to remember or spell.
While you’re at it, choose a business structure that suits your needs.
Once you’ve chosen a great name and your business structure, it’s time to register your business with the state where you want to operate your business.
3. Open an Account for Your Business
To open a business bank account and start sending and receiving money, you need to apply for an employer identification number or EIN. It will also be used for taxation as well as hiring purposes.
Following that, open a separate bank account for your business. For doing that, you need to furnish a few documents such as the EIN, the Articles of Organization, your ID, ownership agreements, etc.
This post just covers some of the basics of business formation, but you will need more information than this to start your business in a hassle-free manner.
For example, depending on the nature of your business and your state’s requirements, you might need to apply for additional permits like Forest Permit, Environment Permit, Health Permit, etc.
To learn more about the end-to-end business formation process, check out this infographic developed by GovDocFiling.
Brett Shapiro is a co-owner of GovDocFiling. He has had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane yet critical formation documentation for any new business entity.
Featured Image by Pixy.org