· Choose a structure (Corporation, Sole-Proprietor, etc.) that suits your businessneeds and offers the best tax benefit. After the structure has been determined, file official paperwork to register your business with the appropriate agency.Choosing a business structure and the registration process is relatively simple. However,the legal and tax-related issues associated with your business’s structure should beresearched thoroughly. You may want to enlist the help of an attorney &/or anaccountant during this process. Your options include: SOLE PROPRIETORSHIP,GENERAL PARTNERSHIP, LIMITED PARTNERSHIP, LIMITED LIABILITYPARTNERSHIP, “C” OR “S” CORPORATION, FOREIGN CORPORATION,LIMITED LIABILITY COMPANY, & TAX-EXEMPT ORGANIZATIONS. Next, you will probably need to register your business with the state or county.Registration requirements will vary.
· Determine how your business will be financed.Every business owner MUST consider how his or her business will be financed. Somecommon sources of funding include: personal savings, home equity loans, credit cards,friends/family, banks & credit unions, and venture capital companies. If personallyfinancing, fund your business in different phases so that smaller amounts of money can be distributed over time. Hopefully, but not always realistic, your business will quickly begin making money that can be reinvested rather than using more personal funds or getting additional loans, etc.
Zoning & Licensing
· You may need to acquire special licenses or permits for your business. This willdepend on the type of business you are running and/or its location. Requirements varyaccording to state, city, or county guidelines.
· Choose a suitable location for your business and client needs.Choosing a good location can have a direct impact on the success of your business.