I am assuming you already know what your business is and what you want to do to change the world, put your kids through college and have a lot of fun. So here are a few things you will need to do to establish your business.
First You Need a Name
One of the team writers, Ken Yeung, just wrote a great post on creating good brand names. Here is an excerpt that sums it up nicely:
Consider the logo and the sound - while you have a brand, remember that it’s not just a word. There’s a logo that is your “symbol” of your company. Don’t forget the graphical element of your brand. If you have a greatsounding brand, you can’t rely on that. Make sure your graphic of your brand (aka logo) is equally as impressive.
Got Trademarks? – don’t forget that just because you have a name in mind, everything will be fine. You should check on trademarks and make sure you’re not violating any patent or trademark laws in choosing a brand name.
Find domain name – in the Internet age, you should make sure that you have the right web address. Using a domain registrar like Network Solutions, you should be able to find out whether a web address that matches your brand name is available. If it isn’t available, using a WHOIS directory on Network Solutions should help you find out who owns that domain.
Check company names – If you’re planning to incorporate, check with the Secretary of State (or other appropriate office outside the US) of the state you’re planning to incorporate in.
Protect your brand – A US trademark or service mark costs $325. While it may not be important for small businesses, this may be something that is advantageous to check out.
Now You Need A Corporate Structure
After you have your name, you need to figure you a specify your business structure. As explained in an earlier post on Unintentional Entrepreneur, there are several different kinds: sole proprietorship, partnerships, corporations and limited liability corporations. You can read more about these different structures by clicking here.
Next Thing, Register Your Business
This means that in order for you to exist as a business you need to register with the IRS and the state you are operating in. You file your corporate docs with your state to acknowledge you are a valid business. After that you need to register your business with the IRS. Another important thing you should do is register with Dun and Bradstreet which tracks business activity and is a sort of credit bureau for companies. It helps establish your business so that when it comes time for a company to do a search and background on you and ask for your “D&B DUNS number” you will have it.
Permits and Licenses
Every business needs one or more federal, state or local licenses or permits to operate. Licenses can range from a basic operating license to very specific permits, (e.g., environmental permits).
Regulations vary by industry, state and locality, so it’s very important to understand the licensing rules where your business is located. Not complying with licensing and permitting regulations can lead to expensive fines and put your business at serious risk.
You should check out Business.gov’s “Permit Me” tool. It asks for your zip and your type of business and gives you the list of things you definitely need to do and might need to do but require further research.
Bank Accounts
It would be safe to say that if you are reading this and looking at starting a business you probably have a personal bank account. When you start a business one of the most important things is opening a bank account for the business. There is a great post on About.com on the Five Reasons Not to Mix Personal and Small Business Banking. I made this mistake early on in my first business with using personal credit cards which is the worst thing you can do.
The other thing you need to consider with banking is what kind of bank do you prefer? Sure you will work with some one at a local branch but do you prefer something more community based or a larger entity with greater reach and programs? Since I travel quite a bit I needed a bank with branches all over the place. If you are a non-profit there are certain banks that have programs best suited for that so the bottom line is to go with your personal feeling and then research the services that match your needs.
Wow, that was a lot and we haven’t even opened our doors yet. So what are you waiting for? Get started and if you have any questions, leave a comment. We would love to help.
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