Running a business can be tough, especially if you're just getting started. There are so many things to do and so much that needs to be taken care of in order to keep your company running smoothly. While you may want to dive right into the day-to-day operations of your business as soon as possible, it's important that you take some time upfront (and throughout) the life cycle of your company to make sure everything is set up correctly from the beginning. The following will help set you up for success.
Form a Business Entity
Once you've decided to start your own business, the next step is to determine what type of entity (or structure) will best suit your needs. For example, do you want to form a limited liability company or corporation? There are benefits and risks for each type of business, so it’s important to get help from a professional to create the right entity.
Obtain an EIN
If you’re starting a business, the first step is often to obtain an Employer Identification Number (EIN). You may have heard of this number before or even used one in your current job, but what exactly is it? An EIN is a unique nine-digit identification number that the IRS assigns to businesses. The EIN enables employers to pay taxes and file tax returns electronically. Every new business needs an EIN before they can start doing business with any other entities for tax purposes. The main reason behind getting an EIN is that it prevents people from evading taxes by making money under fake names or dummy companies.
Register Your Business With the Federal Government
Registering your company with the federal government is important, because it allows you to open up a business bank account. It also helps keep your company safe from identity theft. If you register for an EIN with the IRS, you can use this number in place of an SSN when dealing with vendors and other companies.
Registering your business name and/or logo is something else that needs to happen before you open up shop. This step can be taken as early on in the process as possible, so don’t wait! You want to make sure that no one else has already claimed that name or logo for themselves by going through those same processes mentioned earlier.
Ensure Legal Compliance
Ensuring legal compliance is a difficult task to accomplish when you have many other responsibilities. The main reason for this is that you will have to hire an attorney who has a great deal of knowledge about the law and can help you with your case. You should also make sure that you don’t forget about any important aspect of running your business, such as insurance or filing taxes on time. Legal compliance is also important when it comes to data security and technology. Some states, like California for instance, have additional regulations above and beyond the norm. There is the California Consumer Privacy Act, also known as CCPA, and it can be extremely helpful to enlist the aid of a third party’s CCPA compliance services to ensure that you comply with these added rules.
Choose Your Payment Forms
When it comes to payment forms, you have a lot of options. But not all payment forms are created equally and some are more effective than others. Cash is still an important form of payment for many businesses. If you accept cash or check you can still get paid for services when payment systems go down.
Credit cards are a must. If you aren’t taking debit or credit cards now, why not? Is it because of the fees? These fees are minimal compared to the convenience you’ll create for your customers so they can pay for your goods and services even when they do not have any cash in hand. Online payments are another variation. E-commerce stores thrive on these types of payments. But you can also create online invoices where companies and people can pay you through a simple link. It helps to protect their information and the 3rd party services pay relatively quickly.
Open a Business Bank Account
You will need to open a business bank account. There are several ways of doing this, and it's important that you choose the right one for your business. You'll want an account that allows you to deposit checks and make withdrawals easily, as well as transfer money between your own accounts. These are critical for running any business.
