Steps to Start a Business

Although specifically these steps will vary from state-to-state, they should generally be the same:

1)      Write a business plan and a “franchise prototype” operations manual.

2)      Begin forming a professional team – key players include an attorney, accountant, banker and an insurance agent.

3)      Obtain an EIN at irs.gov or use your SS# if sole proprietorship or a single owner LLC.

4)      Select your entity type (S-Corp, LLC, sole proprietorship, etc) and file the appropriate entity paper-work with your attorney.

5)      Get your state sales tax id if you are going to be selling items and collecting sales tax.

6)      Register with your county clerk if you are if you are a sole proprietor, DBA.

7)      Obtain a city business license if you will be conducting business within city limits or if your offices are housed within city limits.

8)      Open a business checking account using either your EIN or SS#.

9)      Depending on your type of business, you may run into other zoning regulations: fire, food handling, zoning, building inspections, etc.

10)   Secure liability insurance and other coverage appropriate to your business using the insurance agent on your professional team.

11)   Build your “accounting infrastructure.”  Either purchase Quickbooks and enter your information yourself or hire a bookkeeper.  Use the accountant on your professional team to help with end of year tax filings.