Small Business Startup Checklist
Congratulations on starting a new business! This can be an exciting and stressful time as you gear up to create your own mark on the world. To help ease some of the stress, we have generated a small business startup checklist for you as an overview of steps to take in setting up. Be mindful as each business will operate differently so please consult with a professional.
Small Business Startup Checklist:
Create a business plan:
Creating a business plan is probably the most important step a small business owner can take in starting up his/her business. A good business plan will provide a guide for you to ensure you stay on track with your vision. The business plan will communicate to your audience/investors/lenders your goals, objectives and strategies to make your business successful.
Choose a business name:
This could perhaps be the most difficult step for most small business owners. Choosing a proper business name is critical as it will become your whole identity. With the millions of small business out there, your ideal business name may already be taken in your home state. I recommend researching your name with you Secretary of State. Since we are based in North Carolina, any business owner looking to potentially register in NC can do a name search at the NC Secretary of State.
Website domain name register:
After choosing your appropriate business name, the next objective check of of your list would be to register your website domain name. Hopefully someone hasn't already registered your business name. You can use various websites to search and purchase domain names. I have had good experiences using godaddy.com when registering and hosting my domain names.
What type of legal/tax structure will you be?
This step is by far the most important step that you will take as a small business owner. Selecting what type of business entity will determine how you are taxed, how your accounting system should be built and much more. We suggest you talk with both a lawyer for the legal impact and a CPA for a tax impact so that you choose the best entity type that fits your needs. A service such as legalzoom.com would also be able help you set up your entity.
Apply for an EIN with the IRS:
An EIN number is essentially the social security number for the business. It will be used to identify your company with the IRS and also be used to apply for loans, lines of credits, or anything else. If you are doing the application process yourself, then you can go to the IRS website to apply directly for the EIN.
Register with your Secretary of State:
Once you get receive your EIN number go ahead and register with the Secretary of State. Please note the that each state may have annual filing fees and requirements. That state should notify you each year of you filing requirements; otherwise your company could be dissolved.
Open a business bank account:
Once you receive your EIN from the IRS and also register with your Secretary of State; you should go ahead an open up a business bank account. The IRS doesn't like co-mingled funds so the sooner you can separate your business and personal bank accounts the better.
Register for State ID numbers:
If you are going to pay employees or sell taxable products you will need to register for ID numbers with your State. Depending on your state you may need to register for payroll withholding numbers and sales tax ID numbers. Consult with a local professional to make sure you apply for the right numbers and not missing anything.
Verify business licenses and permits:
Depending on what state you are in and also what county you are in, you may need to apply for business permits and licensing. Since every location in different please check with your local professional.
Find a bookkeeper:
Being a accountant myself, I come across small business owners all the time that try and do everything themselves. Find yourself a good bookkeeper/accountant. You don't need to hire someone full time to maintain your accounting records. There are plenty of freelance bookkeepers/accountants out there that should be able to help you with your accounting. If you are having trouble deciding, I posted awhile back
Find a CPA:
Nobody like paying taxes so a good CPA could be your best friend. Every CPA is different from the next so take your time and interview as many as possible to find the perfect fit for your business. A good CPA will be able to provide you tax advice, tax planning and even scalable solutions for your growing business.
There are numerous other steps that you can take as a small business owner and this is an overview of a small business startup checklist that you can follow.