August 15, 2023
By: LaToya Bines
Before we became business owners, we had an idea of what running our own business would be like. We quickly learn that it is not exactly what we were thinking. We start to ask questions like where do we get more clients, when will prospects see the value in my product or service, is entrepreneurship really for me? We will discuss all these topics in later posts, for now let’s help those who want to know how to start.
When you have an idea for a business one of the first things you want to do is go onto your state’s website and check to see if the business name you want is available. If it is, you want to register your business with the state. Each state has their own process and fees when registering a business so make sure to read the required steps, so you know what to expect.
Some people prefer to hire a consultant or attorney to register their business and to set up their business structure. Which include but are not limited to Corporations, Sole Proprietorships, Partnerships and Limited Liability Companies (LLC). The most frequently used business structure for small businesses is the LLC. Many businesses find that LLC has the most legal protections.
You also want to obtain your Employer Identification Number (EIN). The EIN is basically your social security number for your business. You receive your EIN from the IRS.
You must have your EIN to open your business bank account. Separating your business funds from your personal accounts helps you to keep track of your revenue. Tracking your profits and losses will help you later when it is tax time. Also consider having a savings account just for paying taxes, especially when you are just starting out. Speak to your accountant or tax professional if you have tax questions.
Now that you are in the process of having a legitimate business, you want others to recognize your business as a professional entity by setting up a website along with professional email address. If you are not a creative person, then you may have to invest further into your business and have someone create one for you. If you are like many small business owners your funds may be limited, in which case you may want to push your creativity to new measures. Who knows, you may be good at it, and it may become a profitable new service you can provide.
Your email doesn’t have to be info@companyname.com but it should be professional. As your revenue increases you may want to consider paying for an email name. When you decide to take this step make sure that you can keep the email address. People need to know that they can reach you over time.
One of the things we learn as business owners is that there will be times when your cup overflows and there will be other times when you feel like you are incessantly asking people to patron your business. The journey of entrepreneurship comes with many twists and turns, especially in the beginning, but it is something to embrace, enjoy, and endure.
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