How to Begin a Small Business in the United States
There are base legal requirements that must be met before a small business can even begin operations. Compliance and profitability for your business depend on your diligence in following these guidelines. Before you start the legal procedures to establish your company, you should decide what you will be offering, who you will be selling to, and how you will go about doing business. An expert small business tax professional can help you see the bigger picture.
You will be better prepared to accomplish these eight legal criteria once you have a firmer grasp on the type of business you want to create and your goals. Although there may be more regulatory constraints you must abide by, these are the bare minimums needed to get your small business off the ground.
- Create a Company Framework
The first stages in starting a business are doing research on the process and asking yourself some tough questions.
- In other words, what exactly am I trying to accomplish?
- Do I sell goods or render services?
- Should I go out on my own or start a company that will hire others?
- How much cash do I have on hand right now, and what are my immediate financial requirements?
The knowledge you get will direct your procedure. Since the needs of each business owner are different, there is no universal method for selecting an attorney. Some people might opt for a simple sole proprietorship if they feel their firm has no legal risks, but others might prefer to incorporate it in order to set themselves up for growth.
- Familiarize yourself with tax regulations
It is also important to be familiar with business owners’ various federal tax obligations, such as those related to income, self-employment, estimated, employer, and excise taxes. The federal tax forms you use to report these amounts and your specific obligations will vary based on the nature of your business.
The U.S. Small Business Administration (SBA) provides resources for navigating this red tape. If business tax concerns have you stressed out, consider hiring a tax consultant.
Name Your Company Officially
As a lone proprietor, you must register a “Doing Business As” (DBA) or “Fictitious Business Name” in order to conduct business (FBN) legally. By following these steps, you can let the appropriate authorities know what name you’ll be doing business under.