Realizing that your business idea can be turned into a very feasible business is just the first of the numerous steps involved in starting a business in Utah.
In fact, starting a Utah business can be an intimidating and challenging endeavor, but it is equally fulfilling and satisfying to know that you have accomplished something.
The next crucial step to consider as soon as you start a business is incorporating in Utah. The benefits of incorporating are innumerable, but the most important is that it protects your business and yourself, as a business owner, with the limited liability status in place. You can also gain easier access to capital, and your business has increased credibility.
Aside from writing a legendary business plan, here are also five other steps that you should do before you eventually start operating a Utah business.
A federal Employer Identification Number (EIN) is necessary regardless of the type of business, its size, or nature of operations. For this reason, no business is exempted from getting an Employer Identification Number. As a business entity, this series of nine numbers is a unique identifier, the IRS’ way to track tax payments and other purposes.
An EIN has many purposes. Any transaction you enter into that requires business identification requires an EIN from obtaining business licenses and permits to filing tax returns to entering into legal business transactions and more. To get an EIN now for free, you can apply for one online through the IRS website.
As soon as you have an employer identification number, the next important task you need to do is to open a bank account separate of your personal banking account. Although this is additional work on your part when starting a business, it can immensely benefit your business in the long run.
Separating personal and business bank accounts allows you to better keep track of business operations, and gives your business that sense of credibility as a legal business entity in the state of Utah. While you’re at it, you can also apply for a business credit card and begin establishing your credit history.
Utah business licenses and permits are required for your business to legally operate within Utah. If you cannot obtain the necessary licenses, you might be able to operate for a short time, but it’s a guarantee that you will face several fines, penalties, and even so much as the suspension of license and permit issuance.
So instead of postponing the compliance of your application for business licenses and permits, face the task head on, gather all the requirements, and begin with the process of compliance.
Tax regulations and the paperwork involved in completing tax requirements can be quite complicated for a novice entrepreneur. A visit to a tax advisor would immensely help you understand tax regulations and its surrounding governing laws.
When choosing a tax advisor, choose a professional who has the industry expertise and experience to give you the best advice. You can ask for recommendations and read client reviews to help you pick the right professional.
There are so many more tasks involved after you have incorporated a Utah business. Your responsibility as a business owner doesn’t stop at the time you have a fully operating business. Always make it a habit to review any requirements you might have missed, look up compliance requirements you might need to prepare for, and constantly check the state government website for news bulletin.
Also remember that there are recurring tasks you must comply with to ensure that you stay in good standing with the state and avoid any penalties or fines that could seriously hurt your business’ standing.
Learning how to incorporate in Utah and going through the motions of forming your Utah startup can be a bit stressful of a task especially if you’re a novice entrepreneur. However, this is all just a matter of perspective, the way how you tackle tasks, and how resourceful you are. Look up the state’s official website, check the SBA in your area, and utilize the Internet to your best advantage, and then you can successfully accomplish this task.
As soon as you have complied all the requirements mentioned above, you are now ready to operate a business! Good luck!