You have come up with an idea for a business but the question remains, how to start your own business? In the US there are a number of procedures that you are required to follow to ensure that you remain within the law. Whilst none of these steps are particularly complicated it is a good idea to do some background reading on each of them to ensure that you have a good grasp of the topic and do not fall foul of the US authorities as if you do you may open yourself up for financial penalties that any new business could do without.
When you ask the question how to start your own business you may be thinking about what forms you need to fill in, however you firstly need to start at the beginning and in most cases this is writing a business plan, which maps out what your business is about, how it is structured and the financial aspects of your business. The reason this is the first step is because you should quickly be able to see (if your business plan is comprehensive) whether your business has a chance for success.
You should now consider the finance behind your business. If you do not have adequate finance you will likely struggle to start your own business. Friends, banks and private investment are likely the areas you’ll be looking at for finance. Finding private investment in the US can be made easier if you have a comprehensive business plan and you will need to show this to your investors. Also, some private investors or angel investors specialise is specific industries and are likely to be interested in your business if you have this synergy.
You will also need to consider the legal structure of your business. There are a variety of options that may be appropriate from sole proprietorship, partnership, corporation, non-profit, LLC or even a co-operative. You should spend some time researching the options available to you. Registering your business name with the state government is also another step that you will need to complete. Finding a business name can be difficult, but choosing the right business name is important, especially if you are going to operating in a consumer facing market.
Taxation and legislation is the next important steps that you will need to work through when you want to start your own business. You will need to register with your state to obtain a tax identification number and also workers’ compensation, unemployment and disability insurance. You’ll also need to obtain the relevant permits and business licenses, whether those are federal, state or local licences and permits. You’ll also need to consider employer responsibilities if you are looking to take on staff for your new business.
Once you have researched and completed these tasks then you should be well on your way to understanding how to start your own business.