Starting a Home Business – First 10 Steps

Starting a home-based business involves planning, key financial decisions, and a series of legal steps. The 10 easy steps below can help you plan, prepare, and launch your business. Click on the links to learn more from the Small Business Administration (SBA).

Don’t forget to consider a business name and verify if the name is already in use.  Chose a short, catchy, memorable name that sounds good and is easily marketed and branded.  A tag line or catch-phrase for your business is important too.  Do it once, do it right, never do it again.

Step 1: Write a Business Plan

Use these tools and resources to create a business plan. This written guide will help you map out how you will start and run your business successfully.

Step 2: Get Business Assistance and Training

Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business.

Step 3: Choose a Business Location

Get advice on how to select a customer-friendly location and comply with zoning laws.  Home-based business owners are subject to many of the laws and regulations that apply to other business owners.  These include: traffic, noise, changes in physical appearance, and nature of the business.

Step 4: Finance Your Business

Find government backed loans, venture capital and research grants to help you get started.  Other sources include using part of a retirement plan, crowd funding, personal savings, and friends and family.

Home Business

Home Business

Step 5: Determine the Legal Structure of Your Business

Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.  More on legal structures here.

Step 6: Register a Business Name (“Doing Business As”)

Register your business name with your state government.

Step 7: Get a Tax Identification Number

Learn which tax identification number you’ll need to obtain from the IRS and your state revenue agency.

Step 8: Register for State and Local Taxes

Register with your state to obtain a tax identification number, workers’ compensation, unemployment and disability insurance.

Step 9: Obtain Business Licenses and Permits

Get a list of federal, state and local licenses and permits required for your business.

Step 10: Understand Employer Responsibilities

Learn the legal steps you need to take to hire employees.

Disclaimer

Homepreneurs does not endorse nor have any relationships with any of the services listed.  Homepreneurs receives no compensation or consideration for its suggestions or recommendations.  Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.

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Reference

http://www.sba.gov/content/follow-these-steps-starting-business