Quick Tips Everyone Should Follow
Starting a business is exciting and nerve-wracking all at the same time. The “to-do” list can seem never-ending. Below are a few reminders to help you stay on track.
Write a Business Plan
This key step will help you identify what is important to your business and where to focus your resources. By creating a plan, you can outline your operational and financial goals. A plan will serve as a guide to shaping budget and marketing strategies. Putting this information on paper will help to align your business purpose and outcome.
Do your Research.
You will most likely do a lot of research while working on your business plan; however, you need to explore every aspect of the business you want to start. Become an expert on your industry, products and services. Join related professional associations to keep you informed on what’s going on in similar markets. And don’t forget to learn the ins and outs of your competition.
Obtain Professional Help when Necessary
Although you might be an expert in your industry, you don’t need to be an expert on everything. If you need a contract written up, hire an attorney. If you are not an accountant or a bookkeeper, hire one or both to ensure your business financials are in order from the get-go. Focus your energy on what you are good at! You don’t want to waste time and money to fix a financial or legal mess later.
Ask Questions
When you are starting a business, you’ll have a lot of questions. Find an experienced mentor in your industry. The opportunity to learn from someone already through the start-up phase will prove invaluable.
Meet Registration Requirements.
Your location and business structure will determine your registration requirements, if any. Most businesses do not need to register with the federal government to become a legal entity; instead, they must file to obtain a federal tax identification number. Small businesses sometimes register with the federal government for trademark protection or tax-exempt status. In addition, if your business is an LLC, corporation, partnership or nonprofit corporation, you’ll most likely need to register with any state where you conduct business. And don’t forget about local registration requirements. Check with your local government websites to find out what is required in your area.
Open a Business Bank Account
You don’t want to co-mingle your personal and business banking activities. You can open a business bank account once you have your federal EIN. Having a business bank account is a good practice for limiting your personal liability by keeping your business funds separate. A business account also allows customers to be able to pay you with credit cards and make checks out to your business rather than to you personally. Furthermore, a business account can offer the capability of creating a credit card account that can help your business make large startup purchases and help establish a credit history for your business.
Keep Track Of Your Expenses
Many costs associated with a business’s start-up can get deducted once your business opens and is generating income. A qualifying start-up cost is an expense you could deduct if you were already in business. Examples include travel to suppliers, training for your new employees, advertising, utilities and other pre-opening expenses. If start-up costs are less than $50,000, you can deduct up to the first $5,000 of expenses you incur in the current year. Any additional start-up expenses are deducted over a remaining period of not less than 180 months.
Schedule an appointment with us if you’re considering starting a business in the coming months. We’ll review what to expect, tax planning, and payroll information.
While these tips only scratch the surface, hopefully, they’ll help you start on the right foot. Remember, we work with other businesses, so please reach out with any questions before or during your business journey.
