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So, you are taking the leap and becoming an entrepreneur.
This is a big step, and one that shouldn’t be ventured into lightly. There is a lot that goes into the planning and creating of your business, from legal to financial, and the process can differ depending on the type of business you are creating. For each business though, there are some steps that must be taken.
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Below are three things you need to do when starting your business:
Create a Business Plan
If you read our blog, you know how important it is to plan ahead. Your business plan will help you flesh out exactly what you want your business to do. What service and/or product you want to provide and how you will do it. This is a great source to refer back to and make sure your business is going in the direction intended.
Not to mention, this is an essential piece if you are in need of funding. If you want to look a little more in-depth about creating a business plan, read our blog here.
Choose the Right Legal Structure
After you create your plan, you should have a good idea of how you expect to grow and run your new business. The next step is to figure out which legal structure you want to position your company as. We have taken you through a couple of them, see “Why Should I Form an LLC?”, and now is the time to choose.
The easiest and least expensive one is a sole proprietorship. This is perfect if you are a one man/woman shop. One drawback is you are personally liable for the business. A partnership is a good choice if you have several other business owners and you will be splitting the company equally. Again, each partner is liable for the business. The most common legal structure is an LLC. As mentioned in the previous blog, this gives you the flexibility to grow into a larger company and keeps all liability off your personal assets.
Get your Business License and Plan for Taxes
Before you start operating your business, make sure you have the correct business license needed. The license allows you to conduct business and keeps you in compliance. In North Carolina, there are several different business licenses that you may need. To see which ones fit your company, take a look here.
You also need you Tax ID number. This will help keep your income and taxes separate from your personal. Your small business accountant will be able to help you get this and plan for what your estimated tax payments may be.
Starting a new business can be a daunting task. There are many things you will have to do, a few of the most important ones are creating a business plan, choosing the correct legal structure, and getting your license and tax planning.
As with most things, if you surround yourself with the right people, a strong team can help take you to the next level. A North Carolina small business CPA can help you with each of these steps and much more.[/vc_column_text][/vc_column][/vc_row]