Business Startup Consulting
Thinking about starting a business?
You would like to go into business for yourself. However, you're not for sure about all the steps necessary to make this happen. We can advise you in setting up your business according to your specific needs.
Most of the the basic things essential for a business startup are as follows:
Have a good business plan
A good business plan guides you through each step of starting and managing your business. You’ll use your business plan as a road map on how to structure and run your new business. A good business plan can help you get funding for your business as well. A loan officer or investor will want to feel confident that your business will be successful, or that they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you, or investing in your company, is a wise decision.
Choose the right business structure
The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protection and benefits. Are you going to have partners or shareholders? Are you a sole proprietor running a business solo? Will you have a nonprofit organization? These are issues which will affect the type of business entity selected. The business name you choose will need to be registered with state and local governments as well.
Obtain tax ID numbers, licenses, and permits
Your federal tax ID number, also known as an Employer Identification Number (EIN), works like a personal social security number, but for your business. It let's your business pay federal taxes. You'll also need to get a federal license or permit if your business activities are regulated by a federal agency. Most businesses may need a combination of licenses and permits from both federal and state agencies. One such document your business may need to obtain is a registered Retail Merchant's Certificate, if you are required to collect and remit applicable sales tax.
Open a business bank account
Open a business account when you're ready to start accepting or spending money for your business. A business bank account helps you stay legally compliant and protected. It also provides benefits to your customers and employees. Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds. Customers will be able to pay you with credit cards and make checks out to your business instead of directly to you.
Purchase business insurance
Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could run you out of business if you’re not protected with the right insurance. General liability insurance protects against financial loss as the result of bodily injury, property damage, medical expenses, defending lawsuits, and judgments. Commercial property insurance protects your business against loss and damage of company property due to a wide variety of events such as fire, smoke, natural disasters, and vandalism. Also, the federal government requires every business with employees to have workers’ compensation, unemployment, and disability insurance.
Other Issues to Consider
If your business is a LLC with partners, or a LLP:
A partnership agreement needs to be put into place. This is to make sure that all owners, members, or partners agree on the main company issues and plans. LLC stands for Limited Liability Company, whereas LLP stands for Limited Liability Partnership. There are few differences between LLCs and LLPs. However, both need an operating agreement. A LLC or LLP partnership agreement should be written and signed before the actual running of the business begins. It can cause problems and difficulties if this is done later.
This agreement can ensure that members affirm the following: Their visions or intentions for the company; The obligations for particular members; and, Their plans for any changes. These agreements can also protect members or partners from being treated unfairly by other members and to help resolve disputes with already agreed-upon plans. In the case that the LLC or LLP is dissolved, partnership agreements should lay out plans for how the assets and money will be handled.
Submitting taxes to federal and state agencies:
If you have employees, or collect sales tax, you will need to setup online accounts for submitting payroll taxes, unemployment taxes, and sales tax. Your business will have to be enrolled in the IRS's EFTPS system for paying payroll and federal unemployment taxes (FUTA). If your business is located in Indiana, you will have to register your business with INtax to submit your sales tax and handle other state tax obligations.
We can assist you in all your registration needs
L. & L. Accounting and Tax Service can assist you in setting up all your tax accounts. We can also register your business entity with the Secretary of State, and apply for your Employer Identification Number (EIN). Our company can further educate and assist you on other business startup requirements as well. We will be more than glad to provide support to get your business up and running successfully. Call us today!