How To Start A Business
How To Start A Business
A lot of work goes into starting a business — before you ever even begin to file former paperwork. To make sure you have all your ducks in a row before you start down the business startup path, I recommend you answer these questions:
- Who is my target market?
- What do I want to sell (services, goods, information)?
- What will I offer that is unique in my industry?
If you don’t know the answers to these questions, you’ll need to do some more research before you start your business.
Already know what you’re selling and who’s going to buy?
You’re well on your way to starting a successful business! There are a few things you may need to consider before you jump in head first.
Do you have support? You may be lucky and have a lot of supportive people in your life who want you to be a successful business owner. Or you may have friends and family who are doubtful — or flat out don’t think you can handle being a business owner.
And you may be a little uncertain yourself. If this is the case, take this interactive quiz at the Small Business Administration website to find out if you are ready to start a business.
Are you ready to start a business?
Now that you’re ready, you need to start the process of building your business. The first thing we recommend you start with is research. Yes, more research.
Research your business name locally. Unless you are doing business under your legal name, you will need to file paperwork to register a fictitious business name. The paperwork is often referred to as a Doing Business As report (DBA) or a Trade Name Report.
Before you file this report, you need to make sure that no one else has registered your business name in your state. You also need to make sure that no one has a trademark on the name, to avoid legal problems.
Research trademarks. If you live in the United States, you can do a name availability check at your Secretary of State website. You can also do a trademark search at the United States Patent and Trademark website. If you live outside the United States, you will need to visit the website of your country’s trademark office.
Fulfilling government requirements
Local, state and federal governments have requirements that you need to meet before you can legally do business.
Please remember, even if your state or local governments do not have licensing requirements, you are still obligated to follow the guidelines of the Federal Trade Commission.
Federal EIN. At the federal level in the United States, you will need to request a federal Employer Identification Number. This is also referred to as a federal Tax ID Number. You can find out more about the Federal Employer Identification Number from the IRS at www.irs.gov or call 800-829-4933. Yes, you need this number even if you don’t plan on hiring employees.
DBA. After you complete your business name research, you’ll need to file the DBA paperwork with your state. Most states have a Secretary of State website where you can download and fill out the necessary forms. There is also a fee associated with this, so you may need to check the website or call the state office to find out how much it is.
State and local licenses. Depending on what type of business you’re starting, you may need to have a state license. For example, accountants in Oklahoma must be registered with the Accountancy Board. Beauty shops in Oklahoma must be registered with the Oklahoma State Board of Cosmetology.
Registering with your state tax commission
If you are selling a physical product, you will need to register with your state’s tax commission. In some situations, if you are selling service, you don’t need to charge sales tax, but I recommend you contact your state tax commission to find out for sure if you need to or not. If you do, then you’ll need to file for a state tax identification number and find out how much your state tax percentage is. You’ll also need to check with your local government to find out if you need to charge taxes when people buy locally.
Consider local zoning laws
If you are setting up a business in a city or large county, you may need to check your local zoning laws. Some governments forbid businesses in residential areas — but there are some that allow businesses that don’t bring in extra traffic or that don’t have a lot of shipments coming and going. You will need to check with your local zoning commission to find out how the laws will affect your business.
