What are the requirements to start a company, as an individual entrepreneur

Starting a business today is much easier with so many online incorporation services and a network of vendors who can provide you with all the basic needs to start your own business.

The following are the basic steps for launching your business :

1) Preliminary research phase: Understand your market & target customers, marketing & sales channels, vendors, industry, competition. Also, test your idea with few friends/family to see if they see a need & if it helps solve their problem.

2) Prepare a business plan or basic document that outlines your business goals and how you will achieve it. Please note that this should be a live plan. You will be constantly learning and readjusting till you achieve target market fit so this is not a static document.

3) Self-fund or raise capital for your business.

4) Select a name for your business

5) Decide on a business structure sole proprietor, LLC, LLP, S or C Corporation. Please note that you can be a sole proprietor but it has few risks like a personal liability. Your personal assets may be used to pay business debts. So many chose to create a legal structure. These days this can be done for reasonable costs of $200-$400 +state fees. Most CPAs, incorporation service providers can assist you with this.

6) Register your business and select a Doing business as name as applicable

7) Register for state and federal licenses/permits including EIN.

8) Register for local permits and licenses based on your industry type.

9) Open a bank account

10) Select a business location if your business requires physical location or chose a provider to get an official mailing address for online businesses. This step depends on the industry & type of business Eg: If you are starting a fitness center you require a physical location. If you are an IT consultant, you can have an online business.

 

Other steps

1) Setup books and hire a CPA/tax professional

2) Pay timely estimated taxes & manage ongoing compliance requirements.

 ** Based on our response to a question on quora.


Posted In: Company Formation

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