List Of Things Needed To Start A Business

Filed in Articles by on July 8, 2022 0 Comments

Starting a business demands you count the cost. I won’t go all spiritual but there’s a portion of the Bible that advised a man to count the cost if he intends to build a house.

This article explains the things you will need/the things you should know and do before starting a business. If you intend to make it a long-term business then you should make long-term plans, which include the following which we will list below;

List Of Things Needed To Start A Business

1. Get A Business Name And Legal Structure

When choosing a business name, be sure to opt for the name that best describes what your business is about because the business name is what will attract customers to you. Also, be sure the name hadn’t been used already to avoid confusion and future discrepancies.

When selecting a legal structure, be sure to put these choices in mind, will your business be either of the following;

  • Sole proprietorship
  • Partnership
  • Limited Liability Company or
  • S-Corporation or Corporation
2. Write Out A Business Plan

This is the most important step to make. A business plan is like a compass that directs the business owner, it describes the how’s and what’s of a business. Be sure to have a plan A to D, this way, you can easily swap if one plan ricochets.

Your business plan should include the amount you wish to begin with (that is, your capital), the things you need to purchase, the people you need to meet, and how you intend to go about the whole process.

3. You Need To Open A Business Account

This way you are sure that whatever you will make from the business will go directly to that account and won’t be misused.

4. You’ll Need To Obtain Your Federal Employer Identification Number (FEIN)

This will be necessary if your business will be set up as a Corporation, LLC Partnership, or a sole proprietor business but with employees. You’ll have to apply for a Federal Employer Identification Number (FEIN) from the IRS. A FEIN will be necessary to open a bank account or process payroll.

5. You’ll Need A Permit And License

You might not need a federal license, sales tax permit, state license, or business license depending on the structure of your business. However, you may be expected to get a license from the federal agency if you indulge in any of the following;

  • Investment advising
  • Drug manufacturing
  • Preparation of meat products
  • Broadcasting
  • Ground transportation
  • Selling alcohol, tobacco, or firearms

You might need a state license if you are involved in any of the following

  • Cosmetology
  • Building Contractors
  • Banks
  • Insurance Carriers
  • Physicians
  • Appraisers
  • Accountants
  • Barbers
  • Real Estate Agents
6. You May Need A Warehouse, Lease Office OR Retail Space

Warehouses are pivotal if you’ll have to buy large stocks, you’ll need to have a warehouse that stores these products and are only gotten when there is a need for them. You’ll need a leasing office if your services will include meeting neither clients daily nor stuffs.

7. You’ll Need Employees

You’ll need employees if you won’t be able to manage the workload alone but if you can, then I don’t see the need for employees.

8. Obtain A Business Insurance Plan

This way you are sure your business is insured in case of any disaster. You could choose from a range of insurance policy packages, a General Business Insurance or a Business Owner’s Policy. This will cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

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