I know this news may sound frustrating, but you’re simply not done yet. Although you’ve taken care of almost everything from incorporating, as well as processing every single document required from your small business, there’s more that you have to comply with so you can fully get started.
Like doing business in any other state, starting a business requires you to comply with additional requirements. These supplementary requirements are fairly easy to obtain unlike those that you had to process during the incorporation of your startup.
I always say, one ingredient on how to start a business on the right foot is to follow state procedures and one of this is fulfilling all that needs to be fulfilled.
Start your business with peace of mind, obtain the following requirements for your business.
An Employer Identification Number is similar to a Social Security Number for individuals. Every business in the state must obtain this requirement from the IRS before starting to operate their business.
An EIN is important for three reasons: first, it is the IRS’ way of monitoring your taxes and business activities; second, it’s a requirement to open a business bank account; and third, it’s needed to you can file your business tax returns.
The EIN can be obtained for free from the IRS. It’s also a fairly easy requirement to get unlike other documents.
To start your small business officially, you need to obtain the business permits and licenses specific to your business type. The business permits and licenses that you’re going to process will also depend on the kind of business you’re running. To make sure that you’re processing the right ones, make sure to visit your local county office or city hall to ask for assistance and guidance.
One of the most difficult parts of managing a business is handling business taxes. This is quite difficult for new entrepreneurs and first-time business owners. This is the reason why it’s a good idea if you speak with a tax professional to assist you in sorting out your taxes.
A tax professional will explain state regulations and help you understand everything that you need to know during tax period. You will also be briefed on the possible tax deductions and benefits that your business can take advantage of.
Aside from this, you can directly ask for assistance on tax preparation as well.
Opening a business bank account is the next step that you should take to ensure that everything your small business makes will go straight to a bank account specifically intended for it. When doing business, it’s hard to separate personal and business, and opening a bank account will surely help you with this.
Once you have a business bank account, you’ll be able to receive checks and payments under your business name. A business bank account will also be helpful if you want to build your financial history and while you’re at it, you can also apply for a business credit card – it’s easier to track down expenses with this method.
While other entrepreneurs don’t find this necessary, many business owners are slowly learning how important it is to trademark your business name. A business name can play a huge role in the success or failure of your business; it can serve as your winning strategy.
When we start our business, one of the most important things that we focus on is naming our business. It’s the most exciting part! We take into consideration so many things: what our branding is, how it will represent our business and if it can deliver our company’s message clearly. This is the reason why we need to protect our business names.
As I said, these supplementary requirements are easier to obtain and you can even process them yourself. You simply have to visit the concerned office in your state and ask for assistance. After that, prepare all the documents and understand every procedure for every requirement.
It’s as simple as that! This is the last and final step so it is essential that you do all these right; time is clicking and you need to start operating soon.
It is important to keep in mind that your responsibility as a business owner doesn’t just end here. You have to make sure that you are knowledgeable on the things to do every year or thereafter to stay compliant.
There may be requirements that need to be renewed, reports to be filed, fees to be paid and documents to be obtained over again. You need to know all these things to maintain the good standing and reputation of your small business.